,,ii #aai? ,,congress #a/ ,session ,s4 #cebe ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,decemb] #ag1 #bjbe ,mr4 ,m>%all 7= himself1 ,mr4 ,k+1 ,mr4 ,lank=d1 ,mr4 ,%eehy1 & ,ms4 ,coll9s7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,heal?1 ,education1 ,labor1 & ,p5sions ,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 views ( :at con/itutes a jo9t employ] h impact$ ! viability ( fran*is+ by creat+ jo9t employ] liability bas$ on ! fran*isor's ex]cise ( appropriate levels ( 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$iate control does n include p]mitt+ a fran*isee1 "u an arm's-l5g? contract1 to p>ticipate 9 a b5efits plan ( ! fran*isor 7su* z a heal? insurance plan1 p5sion plan1 or tuition assi/ance74 7,c7 ,h\rs ( "w ,a fran*isor ex]cises direct & imm$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+ or recomm5d+ *anges 9 /aff+ levels2 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 or 7iii7 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 are limit$ & r\t9e2 7ii7 sett+ br& /&>ds = ! p]=mance ( ! "w2 7iii7 (f]+ tra9+ mat]ials 7includ+ tra9+ demon/rations7 = a fran*isee to use to tra9 ! employees ( ! fran*isee2 7iv7 e/abli%+ m9imum tra9+ requirem5ts = ! employees ( a fran*isee2 or 7v7 provid+ op]ational support1 guidance1 & assi/ance to ! fran*isee to promote & protect ! br&'s goodwill & quality ( products & s]vices provid$ to ! consum]4 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-- 7,a7 h ! mean+s giv5 su* t]ms 9 section #dcf4a ( title #af1 ,code ( ,f$]al ,regulations1 z 9 effect on ! date ( enactm5t ( ?is section2 & 7,b7 not)/&+ subp>agraph 7,a71 include a fran*ise1 fran*isee1 & fran*isor1 respectively1 z def9$ 9 section #aja ( ! ,petroleum ,m>ket+ ,practices ,act 7#ae ,u4,s4,c4 #bhja74 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 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