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Log In / Register | May 26, 2016

Domino's Lacks Authority to Be Held Liable for Employee of Franchisee

SAN FRANCISCO – In a sexual harassment lawsuit, the California Supreme Court presented franchisors with a big victory last week. The high court ruled that Domino’s Pizza could not be held liable for the bad behavior of an employee in a franchised location because the franchise agreement defines the limits of liability in employment claims.

Are Franchisors Inching Toward a Cliff? How Much Control Is Enough?

It seems to be human nature to want to stand as close to danger as possible—believing you have a solid footing to avoid falling over.  This is demonstrated by recent news reports of people dying while taking “selfies”, including one couple who tumbled off a cliff together in front of their young children.

Jury to Decide If Denny’s Is Vicariously Liable for Death of Franchisee’s Employee

ALBUQUERQUE – A district court last November denied Denny's, Inc. motion for summary judgment, asserting that it could not be held vicariously liable in the wrongful death of a franchisee's employee killed during an armed robbery.

MCD Franchise Tolerates Violence, Hookers

This New York City McDonald's franchise has seen many problems

Unruly groups often gather at Greenwich Village McDonald's, NYC

"Drug dealers, hookers, boys dressed as girls, you name it" says a neighbor about a New York City McDonald's franchise.

Franchisor Vicarious Liability: Idaho Adopts Control Test

In a case of first impression, Idaho Supreme Court holds that Operations Manual directives do not constitute sufficient control to hold a franchisor vicariously liable.

McDonalds Wins Spatula Smackdown Suit

A woman claiming Post-Traumatic Stress Disorder after being hit with a spatula at McDonalds lost her attempt to hold MCD and the franchisee vicariously liable.

Denny's Wins Sanctions After 16 Year-Long Suit

Attorneys suing Denny's and their franchisees were ordered to pay $387,783 in sanctions after Denny's prevailed in a 16 year-long suit.

Franchisor Liable For Franchise Employee's Sexual Harassment

Employee relations between a franchisee and its employees is a headache for the franchisor. The reason is simple: vicarious liability.

Bass v. Gopal & Super 8 Motels

What is the liability of a franchisee and franchisor if a guest is attacked at a hotel? It depends on what state the attack takes place in, and the degree of franchisor control at the property.