Are Franchisees Really Employees?
The Supreme Court of Massachusetts seems to think so, when it comes to Coverall. The Court just released an interesting decision about Coverall Franchisee. They found for the purposes of unemployment insurance, the franchisee was a dependent contractor. And entitled to unemployment insurance, which Coverall should have been making premium payments against.
This is a highly fact dependent case, but the way I read it is that if the Franchisor collects all the money, rebates what is "owed" to the franchisee, they may be found to be exercising too much control and become an accidental employer. Whoops!
Read the the full decision here.
- Franchise topic:
