SB 1496 Summary

• Defines "franchisor" as any person who grants a franchise and participates in the franchise relationship, including subfranchisors who engage in both pre-sale and post-sale activities.

• Defines "franchisee" as any person granted a franchise and "franchise" as a continuing commercial relationship where the franchisor's trademark is used, the franchisor exerts significant control over operations, and the franchisee makes required payments.

• Establishes that a franchisor shall not be considered the employer of a franchisee or the franchisee's employees.

• Clarifies that employees of a franchisee are not employees of the franchisor and employees of a franchisor are not employees of a franchisee.

• Became effective November 1, 2016.