Bill Text: MS SB2110 | 2017 | Regular Session | Engrossed

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Bill Title: Franchise agreements; franchisor is not considered to be an employer under unless agrees to be in writing.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2017-02-28 - Died In Committee [SB2110 Detail]

Download: Mississippi-2017-SB2110-Engrossed.html

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MISSISSIPPI LEGISLATURE

2017 Regular Session

To: Finance

By: Senator(s) Fillingane

Senate Bill 2110

(As Passed the Senate)

AN ACT TO PROVIDE THAT A FRANCHISOR IS NOT CONSIDERED TO BE AN EMPLOYER OR CO-EMPLOYER OF A FRANCHISEE OR AN EMPLOYEE OF A FRANCHISEE UNLESS THE FRANCHISOR AGREES, IN WRITING, TO ASSUME THE ROLE OF AN EMPLOYER OR CO-EMPLOYER OF THE FRANCHISEE OR THE EMPLOYEE OF A FRANCHISEE; AND FOR RELATED PURPOSES.

     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

     SECTION 1.  (1)  As used in this section:

          (a)  "Franchise" means any continuing commercial relationship or arrangement, whatever it may be called, in which the terms of the offer or contract specify, or the franchise seller promises or represents, orally or in writing, that:

              (i)  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;

              (ii)  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

              (iii)  As a condition of obtaining or commencing operation of the franchise, the franchisee makes a required payment of commits to make a required payment to the franchisor or its affiliate.

          (b)  "Franchisee" means any person who is granted a franchise.

          (c)  "Franchisor" means any person who grants a franchise and includes subfranchisors.

          (d)  "Subfranchisor" means a person who functions as a franchisor by engaging in both pre-sale activities and post-sale performance.

     (2)  A franchisor is not considered to be an employer or co-employer of a franchisee or an employee or a franchisee unless the franchisor agrees, in writing, to assume the role of an employer or co-employer of the franchisee or the employee of a franchisee.  This section applies notwithstanding a voluntary agreement between the United States Department of Labor and a franchisor.

     SECTION 2.  This act shall take effect and be in force from and after July 1, 2017.