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14 Int'l J. Franchising L. 3 (2016)

handle is hein.journals/intjoflw14 and id is 1 raw text is: JOINT LIABILITIES FOR FRANCHISORS JOINT LIABILITIES FOR FRANCHISORS: EMPLOYMENT, VICARIOUS LIABILITY, STATUTORY AND OTHER LIABILITIES Michael Brennan, DLA Piper LLP (US), Chicago, US, Babette Mfirzheuser-Wood, Dentons UKMEA LLP, London, UK, Raphael Mellerio, Aramis Avocats, Paris, France Martin Reufels, Heuking Kfihn Liier Wojtek, K61n, Germany and Francesca R. Turitto, Roma Legal Partners, Rome, Italy, One of the main principles of a franchising relationship is that the franchisee is a legally independent operator, running its business at its own risk and peril and assuming the commercial risks of its own decisions. Franchisees are however economically dependent on the franchisor's methods and know-how of the franchisor whose control over the franchise system and the franchisees is an area of caution. Third parties may argue that the franchisor controls the franchisee to the point of holding the franchisor accountable for the franchisee's actions. This article focuses on the vicarious liability of the franchisor vis-a- vis the franchisee's employees and the different approaches in France, Germany, the United Kingdom and the United States to the issue of joint employment in the context of a franchisor/franchisee relationship. 1 Introduction such concept or brand and operate the business. Franchising avoids the franchisor having to bear all 1.1 What is vicarious liability? costs and investments resulting from the development of a business and allows to pass on part The rationale of franchising is to expand a business of such costs to the franchisees. by allowing third parties who are not the inventors of a concept or brand to benefit from the right to use One of the main principles of a franchising * This article is based on a paper presented at the relationship is that the franchisee is a legally International Bar Association Annual Conference in Vienna independent operator, running its business at its own in October 2015. risk and peril and assuming the commercial risks of 3 International Journal of Franchising Law Volume 14 - Issue 1 - 2016 © Claerhout Publishing Ltd. www.iflweb.com

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