Franchises; modifying definition; updating statutory reference. Effective date.

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ENGROSSED SENATE
BILL NO. 521 By: Gollihare of the Senate

and

Dobrinski of the House

An Act relating to franchises; amending 59 O.S. 2021,
Section 6005, which relates to employer and employee
relationships; modifying definition; updating
statutory reference; and providing an effective date.

BE IT ENACTED BY THE PEOPLE OF THE STATE 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 section:
1. “Franchisor” means any person who grants a franchise and
participates in the franchise 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 post-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 franchisor’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 employer of a
franchisee or a franchisee’s employees.
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, 2025.

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Passed the Senate the 24th day of March, 2025.

Presiding Officer of the Senate

Passed the House of Representatives the ____ day of __________,
2025.

Presiding Officer of the House
of Representatives