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Franchisors TX Supreme Court

Lewitt Hackman

Franchisor 101: Duty of Care

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The Texas Supreme Court reversed a lower court’s decision against a franchisor based on a theory of negligence after a customer was assaulted by an employee of the franchisee. The court concluded that franchisor did not owe a...more

Foley & Lardner LLP

Texas Supreme Court Limits Franchisor Liability in Franchisee Sexual Assault Case

Foley & Lardner LLP on

On May 2, 2025, the Texas Supreme Court held that a franchisor owes no duty of care for injuries caused by a franchisee’s employee unless the franchisor retained or exercised control over the hiring of that employee....more

Lathrop GPM

Supreme Court of Texas Holds Franchisor Lacked Control Over Franchisee Sufficient to Create Duty of Care to Customer that Alleged...

Lathrop GPM on

The Supreme Court of Texas recently ruled that franchisor Massage Heights did not owe a duty of care to a massage customer who alleged a sexual assault, because, among other reasons, Massage Heights had neither the...more

Fox Rothschild LLP

Texas Supreme Court Reverses Liability Finding Against Franchisor

Fox Rothschild LLP on

A recent Texas Supreme Court decision fully overturned a jury’s finding that a franchisor was liable for the criminal actions of a franchisee’s employee. This decision underscores the importance of a franchisor having clearly...more

Polsinelli

Landmark Texas Supreme Court Case Finds No “Direct Liability” for Franchisor Arising Out of Franchisee Employee’s Actions

Polsinelli on

On May 2, 2025, the Texas Supreme Court reversed a Texas Court of Appeals’ decision that had affirmed a jury’s verdict finding a franchisor directly liable to the customer of a franchisee for actions undertaken by the...more

Foley & Lardner LLP

Liar, Liar: Texas Supreme Court Rejects Fraud As Basis For Ignoring Dealer Agreements

Foley & Lardner LLP on

One of the most important tools manufacturers and franchisors have available to manage their networks are the agreements they sign with their channel partners. Significant time and effort go into those contracts, ensuring...more

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