Bill > SB521

This bill modifies the legal definition of franchises in Oklahoma by making several key changes to existing statutory language. Specifically, the bill refines the definitions of "franchisor," "franchisee," and "franchise" by removing some descriptive language and streamlining the terminology. The definition of "franchise" now more concisely outlines three core requirements: the franchisee must have the right to operate a business using the franchisor's trademark, the franchisor must have significant control or provide significant assistance in the business operation, and the franchisee must make a required payment to the franchisor. The bill explicitly clarifies that a franchisor is not considered the employer of a franchisee's employees, and conversely, a franchisee is not considered the employer of a franchisor's employees. This helps prevent potential legal confusion about employment relationships in franchise arrangements. The bill will take effect on November 1, 2025, providing ample time for businesses and legal professionals to understand and adapt to the updated language and definitions.

Business and Industry

http://www.oklegislature.gov/BillInfo.aspx?Bill=sb521&Session=2600