News & Analysis as of

Negligence Franchisors

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

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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...

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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

Lewitt Hackman

Franchisor 101: Farsighted Vision for System Changes

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An Ohio federal court granted a franchisor’s motion to dismiss a putative class of franchisees alleging antitrust violations and related claims, including interference to deflate franchisees’ reimbursement rates. Other class...more

Polsinelli

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

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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

Lewitt Hackman

Franchisor 101: Too Much Control can be Painful

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An employee of a Domino’s Pizza franchisee, returning from a pizza delivery, collided with a motorcyclist who suffered serious injuries. After a Pennsylvania jury found Domino’s (as franchisor) vicariously liable for the...more

Lathrop GPM

Pennsylvania Appellate Court Affirms Finding of Vicarious Liability Against Franchisor in Pizza Delivery Accident

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The Superior Court of Pennsylvania recently affirmed a judgment holding Domino’s Pizza vicariously liable for a motorcycle accident involving a franchisee’s delivery driver. Coryell v. Morris, — A.3d —, 2025 Pa. Super. 28...more

Lewitt Hackman

Franchisor 101: Something in the Water

Lewitt Hackman on

A Mississippi federal court granted summary judgment in favor of Leisure Systems, Inc. (“LSI”), a franchisor of Yogi Bear themed children’s parks and campgrounds, on negligence and premises liability claims. The case was...more

Lathrop GPM

Franchisor Not Liable for Alleged Customer Injuries at Franchised Water Park

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A federal court in Mississippi granted summary judgment in favor of a franchisor on negligence claims that arose after eleven children allegedly contracted E. coli in a franchised water park’s pool. Neely v. Great Escapes...more

Lathrop GPM

New York Federal Court Grants Hotel Franchisors’ Motion to Dismiss for Lack of Jurisdiction on Negligence Claims

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A federal court in New York recently granted a motion to dismiss for lack of personal jurisdiction in an action asserting claims that franchisor Hyatt Corporation acted with negligence in connection with assaults to guests...more

Lathrop GPM

Maryland Federal Court Recertifies Class Action Against Hotel Franchisor for Claims Related to Data Breach

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A federal court in Maryland recently granted a motion for class certification by consumers who brought negligence, breach of contract, and consumer protection claims against hotel franchisor Marriott International and data...more

Lathrop GPM

Tennessee Federal Court Grants Franchisor’s Motion to Dismiss Claims for Negligent Hiring of Franchisee

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A federal court in Tennessee recently granted a franchisor’s motion to dismiss claims alleging that a franchisor was liable for a workplace mass shooting by a franchisee. Fernald v. JFE Franchising, Inc., 2023 WL 2938312...more

Lewitt Hackman

Franchisor 101: Greener Grass in a Foreign Forum

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A federal court in Maryland denied Marriott International, Inc.’s motion to dismiss plaintiffs’ action based on forum non convenient. Plaintiffs sued Marriott and the JW Marriott hotel franchisee in India for premises...more

Lewitt Hackman

Franchisee 101: McDonald’s Cooks Up COVID-19 Insurance Coverage

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An insurance coverage case brought by McDonald’s and two of its franchisees (collectively, “McDonald’s”), raised a novel question in Illinois state court. The question was whether or not costs to comply with a mandatory...more

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