There has been a lot of news lately about risks of franchisors being liable for acts and incidents at franchised locations. The National Labor Relations Board’s general counsel recently announced he intends to claim McDonald’s Corporation is liable for labor violations concerning employees of franchised locations who protested for higher wages.
In California, an appellate court ruled Domino’s Pizza could be liable for sexual harassment alleged against the manager of a franchised location. The State Supreme Court reversed and ruled that Domino’s Pizza is not liable.
Three main legal theories are used to claim franchisors should be liable for what happens at franchised locations. Read the Article