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.


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