New Delaware law welcomed by franchisors

Delaware has passed into law HB 55 clarifying that franchisees are independent contractors and not employees of the franchisor. The Bill, which passed through Delaware’s House and Senate unanimously was signed into law by the Governor earlier this month. The new law will be welcomed by franchise systems that remain troubled over this issue because of the Massachusetts Awuah litigation and similar cases that have sprung up in other jurisdictions. Georgia passed similar legislations last year. We will continue to follow other developments as many states conclude their legislative sessions.

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