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SENATE FLOOR VERSION
April 8, 2024
AS AMENDED
ENGROSSED HOUSE
BILL NO. 3107 By: Dobrinski of the House
and
Gollihare of the Senate
[ franchises - employer and employee relationships -
effective date ]
BE IT ENACTED BY THE PEOPLE OF THE STAT E OF OKLAHOMA:
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 franchis e relationship. 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 p ost-sale
performance;
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 terms of the
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offer or contract specify , or the franchise seller promises or
represents, orally or in writing, 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 f ranchisor'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 payment
or commits to make a required payment to the
franchisor or its affiliate.
B. A franchisor shall not be considered the empl oyer of a
franchisee or a franchisee's emplo yees.
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
April 8, 2024 - DO PASS AS AMENDED