The "American Franchise Act" aims to define the relationship between franchisors and franchisees under employment law. It establishes that a franchisor is only considered a joint employer of a franchisee's employees if it exercises substantial direct and immediate control over certain employment conditions. These conditions include wages, benefits, hours of work, hiring, discharge, discipline, supervision, and direction. The Act further specifies the meanings of 'direct and immediate control' and 'essential terms and conditions of employment' and provides definitions for 'franchise', 'franchisee', and 'franchisor'. Additionally, the Act clarifies that it does not apply to proceedings initiated before its enactment.