New Delaware law recognizes franchisees as independent contractors

The International Franchise Association applauded Delaware Governor Jack Markell for signing into law HB 55, legislation that clarifies that the franchisee/franchisor relationship is not an employment relationship and that franchisees are independent contractors.

This measure passed both the Delaware House and Senate unanimously and follows a similar measure in Georgia last year.

"We applaud Delaware legislators for formally recognizing that the franchisee/franchisor relationship represents a contractual business relationship, not an employment relationship," said Steve Caldeira, IFA president and CEO. "This is a victory for the franchise industry and will allow franchising to remain a growing force in the Delaware economy."

As many states will conclude their 2013 legislative sessions in the coming weeks, IFA will look to 2014 for opportunities to clarify independent contractor statues in other states, according to a news release.