(a) In this section, "franchisee" and "franchisor" have the meanings assigned by 16 C.F.R. Section 436.1.
(b) For purposes of this chapter, a franchisor is not considered to be an employer of:
(1) a franchisee; or
(2) a franchisee's employees.
(c) With respect to a specific claim for relief under this chapter made by a franchisee or a franchisee's employee, this section does not apply to a franchisor who has been found by a court of competent jurisdiction in this state to have exercised a type or degree of control over the franchisee or the franchisee's employees not customarily exercised by a franchisor for the purpose of protecting the franchisor's trademarks and brand.
Official text of the Texas Labor Code as published by the Texas Legislative Council.