The State of Delaware has enacted a law clarifying that the franchisee/franchisor relationship is not equivalent to an employee/employer relationship for purposes of interpreting certain Delaware wage and employment laws. Pursuant to HB 55, franchisees are considered independent contractors.

The bill was signed into law by Governor Jack Markell after being passed unanimously by both the Delaware House and Senate. The International Franchise Association applauded the passage of the new bill, saying that it was necessary to allow franchising to remain a growing force in the Delaware economy. The International Franchise Association will likely pursue similar measures in other states in the near future. Read the bill in its entirety here.