House Small Business Committee Chairman Steve Chabot (R-OH) and Rep. Henry Cuellar (D-TX) recently introduced H.R. 6695, the Trademark Licensing Protection Act of 2018, which clarifies that licensing trademarks, and controlling or exercising those trademarks, do not create an employment relationship.
The legislation would resolve legal contradictions for franchisors and franchisees by clarifying the competing laws that require a brand to preserve its federally-registered trademark through brand controls, but at the same time, penalize them from exercising such controls under new “joint employer” rules. Read more here.
This bill provides critical protection for franchising - please send letters to your legislators today to encourage them to support the legislation!