Franchise Law

Walking a Fine Line

Franchisors Must Assert Quality Control While Minimizing Vicarious Liability Risk

, The Legal Intelligencer


A franchisor may be vicariously liable for the acts or omissions of a franchisee, or on occasion, for damages caused by someone else. Vicarious liability has a long history in our legal system and the cases are often fact specific and otherwise inconsistent and unpredictable. This article explores the limits of vicarious liability, such as where an employee of a franchisee can be held to be the franchisor's employee as well. The article will also suggest an action plan to avoid exposure to vicarious liability.

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