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 bill include the definition of a franchise, the establishment of unlawful provisions in franchise agreements, and the identification of unlawful acts and practices by franchisors. Specifically, the Act makes it illegal for franchisors to impose exclusive purchasing requirements, establish competing outlets within a franchisee's territory, modify agreements without consent, and engage in deceptive advertising. Additionally, it mandates that any termination or non-renewal of a franchise must be communicated with at least ninety days' notice.

The Act also allows franchisees to take legal action for damages or to reform their agreements if they are affected by any of the unlawful provisions or practices outlined in the bill. It sets a five-year limitation for bringing such actions and specifies that the provisions will only apply to agreements entered into or renewed after June 30, 2025, with an effective date of July 1, 2025. This legislation is designed to create a fairer business environment for franchisees and ensure that they are not subjected to exploitative practices by franchisors.