Franchise businesses
Take action
Record your position on this measure.
Create an account to record your position, submit testimony, or contact your legislator.
Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Overview
This bill, the "Franchise Act of 2026," aims to define key terms related to franchise businesses in South Carolina law. It establishes definitions for terms like "franchise," "franchisee," and "franchisor," and specifically outlines what constitutes "direct and immediate control" by a franchisor over a franchisee’s operations and employees. The act also includes provisions regarding workers’ compensation, unemployment benefits, and civil rights regulations, clarifying that a franchisor is generally not considered the employer of a franchisee’s employees unless they exercise direct and immediate control.
Key provisions
- Defines ‘franchise,’ ‘franchisee,’ and ‘franchisor’ for legal purposes.
- Establishes the definition of ‘direct and immediate control’ by a franchisor.
- Specifies essential terms and conditions of employment that constitute direct and immediate control (wages, benefits, scheduling, hiring, discharge, discipline, and supervision).
- Clarifies that a franchisor is generally not the employer of a franchisee’s employees.
- Addresses workers’ compensation, unemployment benefits, and civil rights regulations in relation to franchise relationships.
- Provides exceptions to direct and immediate control for certain franchisor activities (e.g., setting brand standards, offering training).
- States that a franchisor does not exercise direct and immediate control over benefits if the franchisee participates in the franchisor’s benefit plans.
- Outlines that a franchisor does not exercise direct and immediate control over scheduling if it establishes operating hours or minimum staffing levels.
Bill text
Read the latest version inline or switch to a previous version.
Text extraction is in progress. View the official source.
Sponsors
Official sponsors from legislative records.
1 on record
Primary sponsor
Arguments
Reasons offered for and against this legislation.
Arguments in favor
No arguments in favor have been submitted.
Submit yoursArguments opposed
No arguments opposed have been submitted.
Submit yours