No. Setting brand standards does not, by itself, make a franchisor a joint employer.

The American Franchise Act (AFA) clarifies that a franchisor may be considered a joint employer only when it possesses and exercises substantial direct and immediate control over essential terms and conditions of employment of a franchisee’s employees.

• Franchisors may set minimum standards for brand protection, including standards that protect trademarks and intellectual property, without becoming joint employers.

• Franchisors may offer training materials and other operational resources to support franchisees and their employees. These forms of support do not amount to direct and immediate control.

• Franchisees operate independently, hiring their teams and running their businesses day to day. They remain responsible for the day-to-day management of employees, including wages, benefits, work schedules and disciplinary action. The bill also identifies the brand-level decisions that do not amount to control over employment—among them setting systemwide operating hours, establishing minimum staffing levels needed to meet customer service standards, and setting minimum training requirements for compliance with applicable law—while leaving the actual determination of pay, individual employee schedules, and discipline with the franchisee.

• Source: https://www.franchise.org/advocacy/american-franchise-act/
• Source: https://savelocalbusinesses.com/wp-content/uploads/2026/07/CSLB-AFA-Myth-vs-Fact.pdf