News & Analysis as of

Vicarious Liability Franchise Agreements

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

North Dakota Federal Court Denies Subway’s Motion to Dismiss Franchisee Employee’s Vicarious Liability Sex Trafficking Claims

Lathrop GPM on

A federal court in North Dakota recently denied a motion to dismiss vicarious liability claims against the corporate entities constituting the Subway franchise system. C.S. v. Subway Worldwide, Inc., 2025 WL 472475 (D.N.D....more

Lathrop GPM

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

Lathrop GPM on

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

Fox Rothschild LLP

IFA Takeaways: How Smart Franchisors Stay Out of Court

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The International Franchise Association’s Annual Convention is always filled with useful take home information for franchise practitioners. Last week, I attended the session “Proactive Strategies for Franchisors to Prevent...more

Lewitt Hackman

Franchisor 101: No Control, No Liability

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A California federal court granted summary judgment in favor of Red Roof Inns, a hotel franchisor, on sex trafficking claims brought under the Trafficking Victims Protection Reauthorization Act, or TVPRA....more

Lewitt Hackman

Franchisor 101: Franchisor Cannot Massage its Way Out of Vicarious Liability

Lewitt Hackman on

A Texas court of appeals affirmed judgment in favor of a plaintiff who claimed a franchisor was vicariously liable for a franchisee’s employee’s wrongful conduct....more

Lathrop GPM

Louisiana Appeals Court Affirms Dismissal of Vicarious Liability Claim

Lathrop GPM on

An appellate court in Louisiana recently affirmed summary judgment in favor of a franchisor, dismissing negligence and premises liability claims asserted by a customer was injured on unauthorized exercise equipment. Flynn v....more

Lathrop GPM

The Franchise Memorandum - Issue # 265

Lathrop GPM on

Welcome to The Franchise Memorandum by Lathrop GPM. Below are summaries of recent legal developments of interest to franchisors. Fraud/Misrepresentation - Minnesota Federal Court Rules that Fraud and Misrepresentation...more

Lathrop GPM

The Franchise Memorandum - Issue # 255

Lathrop GPM on

Welcome to The Franchise Memorandum by Lathrop GPM, formerly known as The GPMemorandum. Below are summaries of recent legal developments of interest to franchisors. Given the widespread and evolving impact of the COVID-19...more

Lathrop GPM

The Franchise Memorandum - Issue 249

Lathrop GPM on

Welcome to The Franchise Memorandum by Lathrop GPM, formerly known as The GPMemorandum. Since December 1997, The GPMemorandum has been presenting summaries of recent legal developments of interest to franchisors and companies...more

Lewitt Hackman

FRANCHISOR 101: Liability as Certain as Death & Taxes

Lewitt Hackman on

Structuring a franchise to reduce risk of joint employment and vicarious liability means limiting a franchisor's control over franchisees. This is a challenge in a professional services franchise, where the brand is...more

Snell & Wilmer

Drafting Franchise Agreements After Patterson v. Domino’s : Avoiding the Minefield of Vicarious Liability and Joint Employment

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Lauded as one of the most important franchise cases in the recent past, Patterson v. Domino’s established a new standard for addressing vicarious liability issues in California. In reaching its decision that Domino’s was not...more

Lewitt Hackman

FRANCHISOR 101: 10 Ways Franchisors Can Reduce Vicarious Liability Risks

Lewitt Hackman on

The U.S. Department of Labor says McDonald's is liable for actions of franchisees. In the last three months a California federal court said McDonald's could be liable for a franchisee's alleged failure to pay overtime and...more

Lewitt Hackman

FRANCHISOR 101: Freshii Not Joint Employer

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The National Labor Relations Board ("NLRB") recently published a memo finding that Canadian fast-casual restaurant franchisor Freshii is not a joint employer of its franchisee's employees. The ruling concerns unfair labor...more

Jaburg Wilk

Seven Strategic Steps to Avoid Franchisor Liability

Jaburg Wilk on

One of the hallmarks of franchising is consistency of the brand and operations across the franchise system. If well executed, that consistency gives the public the impression that the franchise system is a centrally-owned...more

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