Perspective
Dec. 11, 2012
High court set to clarify franchisor liability
If the court affirms the lower court, franchisors may have to amend their franchise agreements, manuals and ancillary documents, limiting their rights to audit and inspect franchisees. By Paul Anton Schiffin
One of the wonderful aspects of starting a franchise is getting other entrepreneurs to invest in your business and spread your brand while each owner bears the risk of legal issues at their location. That's because franchisees are traditionally treated as independent contractors by the law. While a franchisor will prescribe the way its business should be run and monitors franchisees to ensure they adhere to the system and do not destroy...
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