Franchisor and Franchisee as Joint-Defendants; What to do When You’ve Been Roped into Your Franchisee’s Litigation and Can’t Get Out.

Franchisor and Franchisee as Joint-Defendants; What to do When You’ve Been Roped into Your Franchisee’s Litigation and Can’t Get Out

  This scenario is familiar to most franchisors.  Your franchisee has been sued and you have been  namedas a defendant because you have deeper pockets.  Unfortunately, the court will not let you out on a motion to dismiss and you are stuck engaging in the excruciating exercise of discovery and possibly trial in a matter you had nothing to do with.  You and your franchisee have an independent contractor relationship!

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California federal judge grants class action status to employees of a McDonald’s franchise in their lawsuit against McDonald’s

California federal judge grants class action status to employees of a McDonald’s franchise in their

A July 7 decision by a California federal judge has granted class action status to a group of employees of a McDonald’s franchise in their claims against McDonald’s for alleged employment law violations.  The case Ochoa et al. c. McDonald’s Corp., et al. centers on whether McDonald’s Corp. is liable for various labor law violations committed by its franchisee, including the failure to pay overtime wages and provide required breaks,

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Walking the Fine Line in Item 19 Explanatory Notes

Walking the Fine Line in Item 19 Explanatory Notes

  When drafting an Item 19, you may think your job is done once you compile the data, but the job is far from complete. The next part of the Item 19 process is drafting the background and explanatory notes to accompany Item 19 and explain the data contained therein. One problem you may face is whether to include certain “disclaimer” language that protects the franchisor (to a certain extent)

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