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Oklahoma Legislature· SB 521CR; Do Pass Commerce and Economic Development Oversight Committee

An act relating to franchises, the official text

Shown verbatim: the complete text as captured from the official PDF posted by the Oklahoma Legislature, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
1                   STATE OF OKLAHOMA

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2                 1st Session of the 60th Legislature (2025)

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3 SENATE BILL 521               By: Gollihare
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6                               AS INTRODUCED

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7       An Act relating to franchises; amending 59 O.S. 2021,

7       Section 6005, which relates to employer and employee

8       relationships; modifying definition; updating

8       statutory reference; and providing an effective date.

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11 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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12      SECTION 1.  AMENDATORY  59 O.S. 2021, Section 6005, is

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13 amended to read as follows:
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14      Section 6005. A. For purposes of this act section:

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15      1. "Franchisor" means any person who grants a franchise and

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16 participates in the franchise relationship. Unless otherwise
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17 stated, it includes subfranchisors. For purposes of this
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18 definition, a "subfranchisor" means a person who functions as a
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19 franchisor by engaging in both pre-sale activities and post-sale
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20 performance;
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21      2. "Franchisee" means any person who is granted a franchise;

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22 and
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23      3. "Franchise" means any continuing commercial relationship or

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24 arrangement, whatever it may be called, in which the terms of the
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    Req. No. 706                                              Page 1
1 offer or contract specify, or the franchise seller promises or
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2 represents, orally or in writing, that:
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3   a. the franchisee will obtain the right to operate a

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4                 business that is identified or associated with the

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5                 franchisor's trademark, or to offer, sell or

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6                 distribute goods, services or commodities that are

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7                 identified or associated with the franchisor's

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8                 trademark,

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9   b. the franchisor will exert or has authority to exert a

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10                significant degree of control over the franchisee's

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11                method of operation, or provide significant assistance

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12                in the franchisee's method of operation, and

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13  c. as a condition of obtaining or commencing operation of

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14                the franchise, the franchisee makes a required payment

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15                or commits to make a required payment to the

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16                franchisor or its affiliate.

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17  B. A franchisor shall not be considered the employer of a

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18 franchisee or a franchisee's employees.
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19  C. The employees of a franchisee shall not be considered

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20 employees of the franchisor; neither shall the employees of a
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21 franchisor be considered employees of a franchisee.
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22  SECTION 2. This act shall become effective November 1, 2025.

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24  60-1-706      CAD         1/19/2025 5:37:58 AM

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    Req. No. 706                                                Page 2
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