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HOUSE OF REPRESENTATIVES - FLOOR VERSION
STATE OF OKLAHOMA
2nd Session of the 59th Legislature (2024)
COMMITTEE SUBSTITUTE
FOR
HOUSE BILL NO. 3107 By: Dobrinski
COMMITTEE SUBSTITUTE
An Act relating to franchises; amending 59 O.S. 2021,
Section 6005, which relates to employer and employee
relationships; modifying definition; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLA HOMA:
SECTION 1. AMENDATORY 59 O.S. 2021, Section 6005, is
amended to read as follows:
Section 6005. A. For purposes of this act:
1. "Franchisor" means any person who grants a franchise and
participates in the franchise relatio nship. Unless otherwise
stated, it includes subfranchisors. For purposes of this
definition, a "subfranchisor" means a person who functions as a
franchisor by engaging in both pre -sale activities and post -sale
performance;
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2. "Franchisee" means any person who is granted a franchise;
and
3. "Franchise" means any continuing commercial relationship or
arrangement, whatever it may be called, in which the term s of the
offer or contract specify , or the franchise seller promises or
represents, orally or in wri ting, that:
a. the franchisee will obtain the right to operate a
business that is identified or associated with the
franchisor's trademark, or to offer, sell or
distribute goods, services or commodities that are
identified or associated with the franchisor 's
trademark,
b. the franchisor will exert or has authority to exert a
significant degree of control over the franchisee's
method of operation, or provide significant assistance
in the franchisee's method of operation, and
c. as a condition of obtaining or commencing operation of
the franchise, the franchisee makes a required pa yment
or commits to make a required payment to the
franchisor or its affiliate.
B. A franchisor shall not be considered the employer of a
franchisee or a franchisee 's employees.
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C. The employees of a franchisee shall not be considered
employees of the franchisor neither shall the employees of a
franchisor be considered employees of a franchisee.
SECTION 2. This act shall become effective November 1, 2024.
COMMITTEE REPORT BY: COMMITTEE ON BUSINESS AND COMMERCE, dated
02/28/2024 - DO PASS, As Amended.