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Can a franchisor be sued by a franchisee?

Can a franchisor be sued by a franchisee?

Often, the public does not distinguish between franchisor and franchisee when something goes wrong at a franchise. And that could leave franchisors facing a lawsuit for alleged wrongful acts by a franchisee or employee of a franchisee, including negligence, discrimination or assault.

Who is responsible for the employment of a franchisee?

Ensuring franchisee’s comply with their employment law obligations will help with the success of the franchise as a whole. If you have any questions or need assistance drafting an employment agreement for your franchise business, get in touch with our franchise lawyers on 1300 544 755.

Where can I get an employment agreement for a franchise?

If you have any questions or need assistance drafting an employment agreement for your franchise business, get in touch with our franchise lawyers on 1300 544 755. Your trade mark is one of the most valuable assets of your business.

Do you need a franchise to file taxes?

Though there’s a rush of tax returns at certain points in the year, franchises in this industry provide year-round tax services from consultation to assistance in preparing and filing tax returns. Customers who find themselves the subject of an IRS audit can get audit assistance from these companies.

What happens if a franchisor is sued by a franchisee?

If the franchisor is liable, the plaintiff could collect more money from the franchisor than from the franchisee. In some cases, the plaintiff could go after both parties. Do I Need a Lawyer? The rules regarding vicarious liability of franchisors can be complex and vary from state to state.

What are the rules for being an employee of a franchise?

If you work for a company that owns a franchise, you may have to obey many rules to keep your job. But whose rules are they? How and why you’re treated as an employee, and by whom, are the big issues to work out when deciding who is actually your employer under the law.

Can a franchisee be considered a joint employer?

The more the franchisor controls the employment relationship between you and the franchisee, the more likely it will be seen as a joint employer. If so, then compensation may be sought from that franchisor in addition to the individual franchisee.

Do you get paycheck from franchisor or employer?

How and why you’re treated as an employee, and by whom, are the big issues to work out when deciding who is actually your employer under the law. You probably get a paycheck from the company that holds the franchise, but, depending on the facts, the franchisor may also be held legally responsible as a joint employer.