Litigation
Jul. 6, 2012
Franchisors, loosen up; employers, tighten up
The 2nd District recently found that Domino's Pizza went too far controlling a franchisee, resulting in a principle-agent relationship. By David Gurnick and Nicole Kamm of Lewitt Hackman
Franchising is a business relationship in which the owner of a brand and operational system grants a license letting a franchisee conduct their own business using the franchisor's brand and system. Franchising is widespread in the U.S. McDonald's has more than 12,000 domestic franchises, and Yum Brands has almost 14,000 Taco Bell, Pizza Hut and KFC franchised locations in the U.S. Thousands of franchised hotels, gas statio...
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