,,ib ,union ,cal5d> ,no4 #gjb #aai?     
,,congress  #b;d ,session  ,h4 ,r4 #ebfg
 ,report ,no4 #aai-hjb ,,9 ,,! ,,h\se   
,,( ,,repres5tatives  ,septemb] #aj1    
#bjbe,mr4 ,h]n ( ,oklahoma 7= himself1  
,mr4 ,davis ( ,nor? ,c>ol9a1 ,ms4 ,van  
,duyne1 ,ms4 ,s*olt51 ,mr4 ,edw>ds1 ,mr4
 ,co/a1 ,mr4 ,al=d1 ,mr4 ,gray1 ,mr4    
,pflug]1 ,mr4 ,cuell>1 ,mr4 ,moran1 ,mr4
 ,b]a1 ,mr4 ,vic5te ,gonzalez ( ,texas1 
& ,mr4 ,mack5zie7 introduc$ ! foll[+    
bill2 :i* 0 ref]r$ to ! ,committee on   
,education & ,work=ce  ,septemb] #h1    
#bjbf;,additional sponsors3 ,mr4 ,meus]1
 ,mr4 ,c>t] ( ,georgia1 ,mr4 ,kiley (   
,cali=nia1 ,mr4 ,bean ( ,florida1 ,mr4  
,h>rigan1 ,mr4 ,williams ( ,texas1 ,mr4 
,c>t] ( ,l\isiana1 ,mr4 ,van ,ord51 ,mr4
 ,sessions1 ,mr4 ,fitzg]ald1 ,mr4 ,b5tz1
 ,mrs4 ,bice1 ,ms4 ,foxx1 ,mr4          
,baumg>tn]1 ,mr4 ,ku/(f1 ,mr4           
,olszewski1 ,mr4 ,s*midt1 ,mr4 ,fong1   
,mr4 ,got!im]1 ,mr4 ,cole1 ,mr4 ,pet]s1 
,mr4 ,b>r1 ,mr4 ,gro?man1 ,mr4 ,h>d] (  
,cali=nia1 ,mr4 ,fleis*mann1 ,mr4       

,yakym1 ,mr4 ,mc,guire1 ,mr4 ,c>ey1 ,mr4
 ,kelly ( ,p5nsylvania1 ,mr4 ,?ompson ( 
,p5nsylvania1 ,mr4 ,smuck]1 ,mr4 ,wi$1  
,mr4 ,amodei ( ,nevada1 ,mr4 ,fe5/ra1   
,ms4 ,k+-,h9ds1 ,mr4 ,mool5a>1 ,mr4     
,taylor1 ,ms4 ,t5ney1 ,mrs4 ,h9son1 ,mr4
 ,fallon1 ,mr4 ,/aub]1 ,mr4 ,cl9e1 ,mrs4
 ,mill] ( ,ill9ois1 ,mr4 ,ru!r=d1 ,mr4  
,ad]holt1 ,mr4 ,web/] ( ,florida1 ,mr4  
,r\z]1 ,mr4 ,f9/ad1 ,mr4 ,jack1 ,mr4    
,ow5s1 ,mr4 ,all51 ,mr4 ,/rong1 ,mr4    
,valadao1 ,mr4 ,f9e1 ,mr4 ,kean1 ,mr4   
,mc,cormick1 ,mr4 ,dunn ( ,florida1 ,mr4
 ,rulli1 ,mr4 ,case1 ,mr4 ,mill] (      
,ohio1 ,mrs4 ,f$or*ak1 ,mr4 ,ond]1 ,mr4 
,patronis1 ,mr4 ,davis ( ,ill9ois1 ,mr4 
,moore ( ,utah1 ,mr4 ,evans ( ,colorado1
 ,mr4 ,/eube1 ,mr4 ,p]ry1 ,mr4 ,veasey1 
,mr4 ,h>ris ( ,nor? ,c>ol9a1 ,mr4       
,wittman1 ,mr4 ,burlison1 ,mr4 ,mann1   
,mr4 ,bacon1 ,mr4 ,fields1 ,ms4         
,/efanik1 ,mr4 ,des,jarlais1 ,mr4       
,good51 ,mr4 ,b]gman1 ,mrs4 ,h\*91 ,mr4 
,au/9 ,scott ( ,georgia1 ,mr4 ,ne:\se1  
,mr4 ,timmons1 ,mr4 ,johnson ( ,s\?     

,dakota1 ,mr4 ,e/es1 ,mr4 ,kelly (      
,mississippi1 ,mr4 ,la,hood1 ,mr4       
,wilson ( ,s\? ,c>ol9a1 ,mr4 ,palm]1    
,mr4 ,nunn ( ,i[a1 ,ms4 ,hageman1 ,mr4  
,ob]nolte1 ,mr4 ,messm]1 ,ms4 ,letl[1   
,mr4 ,huiz5ga1 ,mr4 ,ezell1 ,mr4        
,mc,dowell1 ,mr4 ,rog]s ( ,alabama1 ,mr4
 ,moore ( ,alabama1 ,mr4 ,flood1 ,mr4   
,diaz-,bal>t1 ,mrs4 ,mill] ( ,we/       
,virg9ia1 ,mr4 ,bo/1 ,mr4 ,ciscomani1   
,mr4 ,gill ( ,texas1 ,mr4 ,womack1 ,mr4 
,com]1 ,mr4 ,moore ( ,we/ ,virg9ia1 ,mr4
 ,h>idopolos1 ,mr4 ,moore ( ,nor?       
,c>ol9a1 ,mr4 ,langwor?y1 ,mr4 ,crank1  
,ms4 ,lee ( ,florida1 ,mrs4 ,kiggans (  
,virg9ia1 ,mr4 ,%reve1 ,mr4 ,van ,drew1 
,mr4 ,hurd ( ,colorado1 ,mr4 ,la,lota1  
,mr4 ,b>rett1 ,mrs4 ,mill]-,meeks1 ,mrs4
 ,fis*ba*1 ,mr4 ,gim5ez1 ,mr4 ,scott    
,frankl9 ( ,florida1 ,mr4 ,norman1 ,mr4 
,h>ris ( ,m>yl&1 ,mr4 ,arr+ton1 ,mr4    
,roy1 ,mr4 ,moylan1 ,mr4 ,ellzey1 ,mr4  
,joyce ( ,ohio1 ,mr4 ,cl\d1 ,mr4 ,biggs 
( ,arizona1 ,mr4 ,panetta1 ,mr4 ,gos>1  
,mr4 ,calv]t1 ,mr4 ,begi*1 ,mrs4 ,wagn]1

 ,mr4 ,crane1 ,ms4 ,malliotakis1 ,mr4   
,donalds1 ,mr4 ,rose1 ,mr4 ,self1 ,ms4  
,boeb]t1 ,mr4 ,griffi?1 & ,mr4 ,c>t] (  
,texas  ,septemb] #h1 #bjbf,report$ ) an
 am5dm5t1 committ$ to ! ,committee ( !  
,:ole ,h\se on ! ,/ate ( ! ,union1 &    
ord]$ to be printed,strike out all aft] 
! enact+ clause & ins]t ! "p pr9t$ 9    
italic,for text ( introduc$ bill1 see   
copy ( bill z introduc$ on ,septemb]    
#aj1 #bjbe  ,a ,,bill  ,to pres]ve !    
fran*ise bus9ess model4  #a4 ,%ort title
 ,?is ,act may be cit$ z ! ,am]ican     
,fran*ise ,act4  #b4 ,f9d+s ,congress   
f9ds ! foll[+3 7#a7 ,a fran*ise is a    
comm]cial relation%ip "u :i* a fran*isee
 acquires ! "r to op]ate an indep5d5t   
bus9ess t (f]s1 sells1 or di/ributes    
goods or s]vices us+ a fran*isor's sy/em
 ( op]ations1 :i* typically includes !  
fran*isor's bus9ess sy/em & m>ket+ plan1
 & its s]vice m>k1 tradem>k1 trade      
dress1 or trade "n4  7#b7 ,to protect ! 
integrity ( its sy/em ( op]ations1 a    
fran*isor mu/ set & en=ce uni=m quality1

 m>ket+1 & op]ational /&>ds t gov]n its 
use4 ,do+ s helps ma9ta9 consi/5cy &    
uni=mity 9 ! nature & quality ( ! goods 
& s]vices di/ribut$ "u ! fran*isor's    
tradem>ks4 ,t consi/5cy & uni=mity1 9   
turn1 help ensure t consum] expectations
 are satisfi$1 increase ! value ( !     
fran*isor's br&1 & enhance ! recognition
 & pr(itability ( individual fran*ises4 
7#c7 ,al?\gh fran*isees mu/ comply ) ^! 
/&>ds1 fran*isees are indep5d5t bus9ess 
own]s4 ,x is ! fran*isee :o det]m9es h[ 
to implem5t ! fran*isor's /&>ds1        
controll+ on a day-to-day basis !       
op]ations ( its fran*ise & its labor    
relations4  7#d7 ,! economic impact (   
?is bus9ess model has be5 pr(\nd4       
,accord+ to a ,septemb] #bjbc report f  
,ox=d ,economics1 9 #bjbb1 ! economic   
output ( fran*ise e/abli%m5ts 9 ! ,unit$
 ,/ates 0 approximately                 
#hbe1jjj1jjj1jjj4 ,dur+ t ye>1 fran*ises
 employ$ approximately #e p]c5t ( all   
work]s 9 ! ,unit$ ,/ates1 :i* 0         
approximately #h1djj1jjj work]s4  7#e7  

,inconsi/5t & expansive views ( :at     
con/itutes a jo9t employ] h impact$ !   
viability ( fran*is+ by creat+ jo9t     
employ] liability bas$ on ! fran*isor's 
ex]cise ( control t is inh]5t 9 fran*ise
 relation%ips4  #c4 ,cl>ification ( jo9t
 employm5t = fran*is+  7a7 ,national    
,labor ,relations ,act ,! ,national     
,labor ,relations ,act 7#bi ,u4,s4,c4   
#aea et seq47 is am5d$ by add+ at ! end 
! foll[+3  #bj4 ,cl>ification ( jo9t    
employm5t = fran*is+  7a7 ,def9itions ,9
 ?is section3 7#a7 ,direct & imm$iate   
control ,! t]m direct & imm$iate control
 means ! foll[+ ) respect to ea*        
respective ess5tial t]m & condition (   
employm5t3 7,a7 ,wages ,a fran*isor     
ex]cises direct & imm$iate control ov]  
wages if x actually det]m9es ! wage     
rates1 sal>y1 or o!r rate ( pay t is    
paid to individual employees ( a        
fran*isee or job classifications (      
employees ( a fran*isee4  7,b7 ,b5efits 
,a fran*isor ex]cises direct & imm$iate 
control ov] b5efits if x actually       

det]m9es ! fr+e b5efits to be provid$ or
 (f]$ to a fran*isee's employees4 ,su*  
direct & imm$iate control-- 7i7 includes
 select+ ! b5efit plans 7su* z heal?    
insurance plans & p5sion plans7 or level
 ( b5efits provid$ to a fran*isee's     
employees2 &  7ii7 does n include       
p]mitt+ a fran*isee1 "u an arm's-l5g?   
contract1 to p>ticipate 9 a b5efits plan
 ( ! fran*isor4  7,c7 ,h\rs ( "w ,a     
fran*isor ex]cises direct & imm$iate    
control ov] h\rs ( "w if x actually     
det]m9es "w s*$ules or ! "w h\rs1       
includ+ ov]time1 ( a fran*isee's        
employees4 ,su* direct & imm$iate       
control does n include-- 7i7 e/abli%+ a 
fran*isee's op]at+ h\rs2 or  7ii7       
e/abli%+ m9imum /aff+ levels to satisfy 
! fran*ise's s]vice /&>ds4  7,d7 ,hir+  
,a fran*isor ex]cises direct & imm$iate 
control ov] hir+ if x actually det]m9es 
:i* p>ticul> employees w be hir$ or :i* 
employees w n be hir$4 ,su* direct &    
imm$iate control does n include-- 7i7   
enc\rag+1 recomm5d+1 or reque/+ *anges 9

 /aff+ levels to accompli% tasks2 or    
7ii7 sett+ m9imal recruit+ & hir+ /&>ds1
 su* z ^? requir$ by law1 = consum] or  
employee safety1 or = br& protection4   
7,e7 ,dis*>ge ,a fran*isor ex]cises     
direct & imm$iate control ov] dis*>ge if
 x actually decides to t]m9ate !        
employm5t ( an employee ( a fran*isee4  
,su* direct & imm$iate control does n   
include-- 7i7 br++ misconduct or poor   
p]=mance to ! att5tion ( a fran*isee t  
makes ! actual dis*>ge decision2  7ii7  
express+ a negative op9ion ( a          
fran*isee's employee2 or  7iii7 sett+   
m9imal /&>ds ( p]=mance or conduct1 su* 
z ^? requir$ by law1 = consum] or       
employee safety1 or = br& protection4   
7,f7 ,discipl9e ,a fran*isor ex]cises   
direct & imm$iate control ov] discipl9e 
if x actually decides to susp5d or      
o!rwise discipl9e a fran*isee's         
employee4 ,su* direct & imm$iate control
 does n include-- 7i7 br++ misconduct or
 poor p]=mance to ! att5tion ( a        
fran*isee t makes ! actual discipl9>y   

decision2  7ii7 express+ a negative     
op9ion ( a fran*isee's employee2  7iii7 
refus+ to all[ a fran*isee's employee to
 p]=m "w "u a fran*ise (f] or contract2 
or  7iv7 sett+ m9imal /&>ds ( p]=mance  
or conduct1 su* z ^? requir$ by law1 =  
consum] or employee safety or = br&     
protection4  7,g7 ,sup]vision ,a        
fran*isor ex]cises direct & imm$iate    
control ov] sup]vision by consi/5tly &  
directly in/ruct+ a fran*isee's         
employees h[ to p]=m _! "w or by        
actually issu+ employee p]=mance        
appraisals4 ,su* direct & imm$iate      
control does n include-- 7i7 provid+    
in/ructions to a fran*isee's employees  
t-- 7,i7 are limit$ & r\t9e2 &  7,,ii7  
consi/ prim>ily ( tell+ a fran*isee's   
employees :at "w to p]=m1 or :]e & :5 to
 p]=m ! "w1 b n h[ to p]=m ! "w2  7ii7  
sett+ br& /&>ds = ! p]=mance ( ! "w2    
7iii7 (f]+ tra9+ mat]ials 7includ+ tra9+
 demon/rations7 = a fran*isee to use 9  
tra9+ ! employees ( ! fran*isee2 or     
7iv7 e/abli%+ m9imum tra9+ requirem5ts =

 ! employees ( a fran*isee4  7,h7       
,direction ,a fran*isor ex]cises direct 
& imm$iate control ov] direction by     
assign+ p>ticul> employees ( a fran*isee
 _! individual "w s*$ules1 positions1 & 
tasks4 ,su* direct & imm$iate control   
does n include (f]+ res\rces & tools = a
 fran*isee to consid] us+ to direct ! "w
 s*$ules1 positions1 & tasks ( !        
employees ( ! fran*isee4  7#b7 ,ess5tial
 t]ms & conditions ( employm5t ,! t]m   
ess5tial t]ms & conditions ( employm5t  
means wages1 b5efits1 h\rs ( "w1 hir+1  
dis*>ge1 discipl9e1 sup]vision1 &       
direction4  7#c7 ,fran*ise2 fran*isee2  
fran*isor ,! t]ms fran*ise1 fran*isee1 &
 fran*isor h ! mean+s giv5 su* t]ms 9   
section #dcf4a ( title #af1 ,code (     
,f$]al ,regulations1 z 9 effect on !    
date ( enactm5t ( ?is section4  7#d7    
,sub/antial direct & imm$iate control ,!
 t]m sub/antial direct & imm$iate       
control-- 7,a7 means direct & imm$iate  
control t has a regul> or cont9u\s      
consequ5tial effect on an ess5tial t]m &

 condition ( employm5t ( a fran*isee's  
employees2 &  7,b7 does n include direct
 & imm$iate control t is only ex]cis$ on
 a sporadic1 isolat$1 or de m9imis      
basis4  7b7 ,jo9t employm5t ,= !        
purposes ( ?is ,act1 a fran*isor may be 
consid]$ a jo9t employ] ( ! employees ( 
a fran*isee only if ! fran*isor         
possesses & ex]cises sub/antial direct &
 imm$iate control ov] "o or m ess5tial  
t]ms & conditions ( employm5t ( !       
employees ( ! fran*isee4  4  7b7 ,fair  
,labor ,/&>ds ,act ( #aich ,! ,fair     
,labor ,/&>ds ,act ( #aich 7#bi         
,u4,s4,c4 #bja et seq47 is am5d$ by add+
 at ! end ( ! foll[+3  #bj4             
,cl>ification ( jo9t employm5t =        
fran*is+  7a7 ,9 g5]al ,= purposes ( ?is
 ,act1 a fran*isor may be consid]$ a    
jo9t employ] ( ! employees ( a fran*isee
 only if ! fran*isor meets ! crit]ia = a
 jo9t employ] ) a fran*isee "u section  
#bj ( ! ,national ,labor ,relations     
,act1 except t1 = purposes ( det]m9+    
jo9t-employ] /atus "u ?is ,act1 ! t]ms  

employee & employ] ref]5c$ 9 section #bj
 ( ! ,national ,labor ,relations ,act   
%all h ! mean+s giv5 su* t]ms 9 section 
#c ( ?is ,act4  4  7b7 ,def9itions ,9   
?is section1 ! t]ms fran*isor &         
fran*isee h ! mean+s giv5 su* t]ms 9    
section #bj7;a7 ( ! ,national ,labor    
,relations ,act4  4  #d4 ,applicability 
,?is ,act1 & ! am5dm5ts made by ?is     
,act1 %all n apply to any proce$+ t is  
comm5c$ be=e ! date ( enactm5t ( ?is    
,act4  ,septemb] #h1 #bjbf,report$ ) an 
am5dm5t1 committ$ to ! ,committee ( !   
,:ole ,h\se on ! ,/ate ( ! ,union1 &    
ord]$ to be pr9t$