Bill No. 521, introduced by Senators Gollihare and Dobrinski, amends Section 6005 of Title 59 of the Oklahoma Statutes, which pertains to employer and employee relationships within franchise agreements. The bill modifies the definitions of "franchisor," "franchisee," and "franchise," clarifying the roles and responsibilities of each party in the franchise relationship. Notably, it removes certain phrases that previously described the nature of the franchise agreement, streamlining the language to focus on the essential elements of the franchise relationship, such as the rights and obligations of the franchisor and franchisee.
Additionally, the bill explicitly states that a franchisor shall not be considered the employer of a franchisee or the franchisee's employees, and vice versa, thereby reinforcing the independence of franchise operations. This separation of employer-employee relationships aims to provide clarity and legal protection for both franchisors and franchisees. The act is set to take effect on November 1, 2025.