Joint Employer Rule Challenges Present Opportunity to Reinforce Roles, Responsibilities

Franchisors are living in uncertain times. As they face a surge in vicarious liability lawsuits, the U.S. National Labor Relations Board’s (NLRB) recent changes to joint-employer standards may also expose franchisors to increased liability for franchisee operations. 

In an article written for Franchising World, Faegre Baker Daniels partner Brian Schnell acknowledged that these “external forces could threaten the franchise business model” but argued that they “also present opportunities for franchisors to reinforce and balance the roles and responsibilities of the franchisor, franchisee and system as a whole.” 

Schnell laid out franchise agreement provisions, operations manual language and field support practices that franchisors can use to best manage—and manage risk—in their franchise system.

The article begins on page 29.