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Vicarious Liability Franchisors

Lathrop GPM

Ohio Federal Court Grants Hotel Franchisors’ Motions for Summary Judgment on Sex Trafficking Claims

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A federal court in Ohio recently granted summary judgment in favor of multiple hotel franchisors on sex trafficking claims brought under the Trafficking Victims Protection Reauthorization Act (TVPRA). S.C. v. Wyndham Hotels &...more

Lewitt Hackman

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

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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

The Franchise Memorandum - Issue # 265

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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

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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

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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

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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

Fox Rothschild LLP

Federal Court Concludes Franchisor Was NOT Joint Employer

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Another case has been decided adding to the back and forth in the legal world on the issues of a joint employer relationship of a franchisor and its franchisee and vicarious liability and agency between a franchisor and...more

Lewitt Hackman

FRANCHISOR 101: Manual Overload

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A franchisor's investment in brand standards, protection and control often comes at a cost when a consumer believing or claiming to believe the franchisor and franchisee are the same, seeks to hold a franchisor liable for a...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: Wins, Losses & Lessons in Joint Employer Liability

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As joint employer liability continues to develop, plaintiffs seeking deep pockets continue to claim, with some success, that franchisors are joint employers, responsible for actions of their franchisees' employees. In April,...more

Lewitt Hackman

FRANCHISOR 101: 10 Ways Franchisors Can Reduce Vicarious Liability Risks

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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

Orrick - Employment Law and Litigation

Domino’s Delivers Key Ruling in Favor of Franchisors

The California Supreme Court recently issued an important victory for franchisors, finding that a franchisor does not stand in an employment or agency relationship with the franchisee and its employees for purposes of holding...more

Skadden, Arps, Slate, Meagher & Flom LLP

Employment Flash - September 2014

In This Issue: - SEC Pays First Whistleblower Award to Audit and Compliance Professional - Supreme Court Allows Affordable Care Act Contraceptives Religious Exemption - EEOC Adopts New Pregnancy...more

Davis Wright Tremaine LLP

Twelve Tips for Franchisors to Reduce Joint Employer Risks Under Today's Legal Standards

Franchise agreement recitals declaring your franchisee to be an independent contractor, not an employee, are not dispositive! Until now, the spotlight has never shined so brightly on franchising and, specifically, on...more

Nossaman LLP

Did You Know…California Supreme Court Rules – No Franchisor Vicarious Liability

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The California Supreme Court recently held in Patterson v. Domino’s Pizza, LLC, No. S204543 (Cal. Aug. 28, 2014) that a franchisor could not be held vicariously liable under the California Fair Employment and Housing Act...more

Proskauer Rose LLP

California Employment Law Notes

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Franchisor Is Not Liable For Franchisee's Alleged Sexual Harassment Of Its Employee - Patterson v. Domino's Pizza, LLC, 2014 WL 4236175 (Cal. S. Ct. 2014) - Taylor Patterson was hired by Sui Juris (a franchisee...more

Stoel Rives LLP

California Supreme Court Clarifies When a Franchisee's Employees Can Bring Employment Claims Against the Franchisor in Taylor...

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In Taylor Patterson v. Domino’s Pizza, LLC, the California Supreme Court restricted the ability of a franchisee’s employees to sue the franchisor based on theories of vicarious liability and the theory that the franchisor was...more

Perkins Coie

Patterson v. Domino’s Pizza, LLC: Franchisors Are Not Vicariously Liable as “Employers” or “Principals” for Their Franchisees’...

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In a significant win for franchisors, the California Supreme Court ruled 4-3 that although Domino’s “imposes comprehensive and meticulous standards for marketing its trademarked brand and operating its franchises in a uniform...more

Littler

Who's in Control Here? California's Supreme Court Establishes New Standards for Potential Franchisor Liability for Employee Tort...

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On August 28, 2014, the Supreme Court of California, in Patterson v. Domino's Pizza, LLC, decided whether a franchisor was entitled to summary judgment on the plaintiff's claims that the franchisor was vicariously liable for...more

Faegre Drinker Biddle & Reath LLP

Landmark Ruling: Franchisor Not Liable Absent Employment Related Control

On August 28, 2014, the California Supreme Court issued a landmark ruling in favor of Domino's Pizza and all business format franchisors that do business in California. In Patterson v. Domino's Pizza, LLC, ---P.3d---, 2014 WL...more

Davis Wright Tremaine LLP

NLRB Will Charge McDonald’s as “Joint Employer” For Franchisee Labor Violations

In a move with far-reaching ramifications for all businesses that license their brands to independent contractors including franchisees, the National Labor Relations Board (“NLRB”) announced on July 29, 2014 that it has...more

Lewitt Hackman

Focused on Franchise Law - September 2013

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FRANCHISOR 101: FRANCHISOR NOT LIABLE FOR ACTIONS OF FRANCHISEE'S MANAGERS - Cortland, a former bartender, sued GECP-Sunrise, LLC, a Buffalo Wild Wings franchisee, and its franchisor, Buffalo Wild Wings, Inc., claiming...more

Baker Donelson

Six Lessons for Franchisors on Avoiding Liability Under Title VII

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Restaurant franchisor Buffalo Wild Wings, Inc. (BWW) and Buffalo Wild Wings International Inc. were sued in Arizona's federal district court on charges of Title VII violations....more

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