Franchisor and franchisee; owner of a mark and licensee; employment relationship; definitions

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23-1604. Franchisor and franchisee; owner of a mark and licensee; employment relationship; definitions

A. For the purposes of this title:

1. A franchisor is not an employer or co-employer of either a franchisee or an employee of the franchisee, unless the franchisor agrees, in writing, to assume the role of employer or co-employer of the franchisee or the employee of the franchisee.

2. The owner of a mark is not an employer or co-employer of either the licensee or an employee of the licensee, unless the owner of the mark agrees, in writing, to assume the role of employer or co-employer of the licensee or the employee of the licensee.

B. For the purposes of this section:

1. " Franchisee" has the same meaning prescribed in 16 Code of Federal Regulations section 436.1.

2. " Franchisor" has the same meaning prescribed in 16 Code of Federal Regulations section 436.1.

3. " Licensee" means a third party to whom the owner of a mark licenses the owner's mark for the purpose of independently conducting business using the licensed mark.

4. " Mark" has the same meaning prescribed in section 44-1441.


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