Franchisee Employees and Franchisor Liabilities

Franchisees must worry about employee lawsuits, as employment litigation has shot up dramatically in the last decade. A franchisor must also shield themselves from the potential lawsuits of the franchisee's labor. One way to distance the franchising companies liabilities from the franchised outlets operations is to include a clause in the franchise agreement, which states that all obligations and lawsuits regarding employment are the sole responsibility of the franchisee