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, unilaterally modify agreements, or terminate franchises without good cause. Additionally, it outlines the rights of franchisees regarding advertising costs, non-compete clauses, and the requirement for reasonable notice before termination or non-renewal of a franchise.

The Act also provides franchisees with the right to take legal action for damages or to reform their franchise agreements if they are affected by any of the unlawful provisions or practices outlined in the Act. It establishes a five-year statute of limitations for bringing such actions and specifies that the provisions will apply only 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 and more transparent environment for franchise operations in New Mexico.