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Franchisor Joint Employer Liability in a “Me Too” and COVID-19 World

Laura Reathaford November 17, 2020

Joint Employer liability is frequently the subject of much discussion. In California, the issue often arises in the wage-and-hour context—and is commonly litigated in the context of franchisor/franchisee liability. In Salazar v. McDonald’s Corp., the Ninth Circuit recently held that the franchisor was not liable for purported violations of the California Labor Code due to its lack of control over

What Happens to Franchise Owners When Their Franchisor Goes Out of Business?

Morgan Geller July 10, 2020

For the past nine years, franchising has experienced annual growth across all sectors, with 733,000 franchise establishments employing 7.6 million employees. According to a survey conducted by the International Franchise Association, 74% of franchised businesses closed following the downturn in the economy after the coronavirus. For some franchisors, the loss in revenue associated with even a few franchisees closing their

Franchise Non-Compete Agreements: Mostly Unenforceable As Written

Jonathan Pollard October 17, 2018

For the past several decades, courts in many jurisdictions have handed out injunctions like candy in franchise non-compete cases. This is, of course, dead wrong. Here is a great example from my case files. Joe owns five McDonald’s locations in a high traffic area. Joe decides not to renew his franchise agreement. He figures he can go start some other

In Franchising, Who Is The Employer, Who Is The Employee, And What Does It Mean?

Rick Farrell October 27, 2014

Currently, the franchise industry is facing the question of whether the franchisor, the franchisee or both is the employer of those working at a franchise outlet. Of possibly greater significance is the question of whether a franchisee is actually an employee of the franchisor under the legal definitions of employee and independent contractor. The determination of these two questions will

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