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

07/28/2016
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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  named as 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

07/25/2016
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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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