The bill amends Section 6005 of Title 59 of the Oklahoma Statutes, which pertains to employer and employee relationships within franchise agreements. It modifies the definitions of "franchisor," "franchisee," and "franchise," clarifying the roles and relationships between these parties. Notably, the term "act" is replaced with "section," and the phrase "whatever it may be called" is removed from the definition of "franchise." Additionally, the language regarding the franchise seller's promises or representations is also deleted, streamlining the criteria that define a franchise relationship.
Furthermore, the bill explicitly states that a franchisor shall not be considered the employer of a franchisee or the franchisee's employees, and vice versa. This clarification aims to delineate the employment relationships within franchise operations, ensuring that employees of a franchisee are not classified as employees of the franchisor, and that employees of a franchisor are not classified as employees of a franchisee. The act is set to take effect on November 1, 2025.