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CFR  

Code of Federal Regulations Pertaining to ESA

Title 29  

Labor

 

Chapter V  

Wage and Hour Division, Department of Labor

 

 

Part 779  

The Fair Labor Standards Act As Applied to Retailers of Goods or Services

 

 

 

Subpart C  

Employment to Which the Act May Apply; Enterprise Coverage


29 CFR 779.226 - Exception for an independently owned retail or service establishment under certain franchise and other arrangements.

  • Section Number: 779.226
  • Section Name: Exception for an independently owned retail or service establishment under certain franchise and other arrangements.

    While certain franchise and other arrangements may operate to bring 
the one to whom the franchise is granted into another enterprise (see 
Sec. 779.232), section 3(r) contains a specific exception for certain 
arrangements entered into by a retail or service establishment which is 
under independent ownership. The specific exception in section 3(r) 
reads as follows:

    Provided, That, within the meaning of this subsection, a retail or 
service establishment which is under independent ownership shall not be 
deemed to be so operated or controlled as to be other than a separate 
and distinct enterprise by reason of any arrangement, which includes, 
but is not necessarily limited to, an agreement, (1) that it will sell, 
or sell only, certain goods specified by a particular manufacturer, 
distributor, or advertiser, (2) that it will join with other such 
establishments in the same industry for the purpose of collective 
purchasing, or (3) that it will have the exclusive right to sell the 
goods or use the brand name of a manufacturer, distributor, or 
advertiser within a specified area, or by reason of the fact that it 
occupies premises leased to it by a person who also leases premises to 
other retail or service establishments.
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