The Deceptive Franchise Practices Act aims to protect franchisees in New Mexico by prohibiting certain unfair practices and provisions in franchise agreements. Key provisions of the Act include making it unlawful for franchisors to require franchisees to purchase goods exclusively from them when alternatives are available, to unilaterally modify agreements without consent, or to terminate agreements without good cause. Additionally, the Act restricts franchisors from engaging in deceptive advertising, coercing franchisees into unnecessary purchases, and unfairly competing with franchisees within their designated territories. Franchise agreements must also provide at least ninety days' notice for termination or non-renewal.

The Act allows franchisees who are affected by these unlawful provisions or practices to seek damages or reform their agreements, provided the agreements were entered into or renewed after July 1, 2025. Furthermore, any legal action for violations must be initiated within five years of the violation. The provisions of the Deceptive Franchise Practices Act will take effect on July 1, 2025, ensuring that franchisees have a legal framework to address grievances and protect their rights in franchise relationships.