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Franchisor Protection Laws by State

Author: XpertHR Editorial Team

Many states have laws that protect franchisors from liability for the labor and employment-related violations committed by franchisees and their workers. These laws typically provide that franchisors are not considered employers of franchisees or their workers and therefore are not liable for their employment-related claims, except under certain circumstances. For instance, some state laws provide that neither a franchisee nor a franchisee's employee would be deemed an employee of the franchisor unless agreed upon in writing.

The following chart indicates whether each state has a franchisor protection law. In states that do have such a law, click on the state name for details regarding the law. For further information on franchisors and franchisees, see Types of Employers.