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LJN's Franchising Business & Law Alert

February 2010

Developments in Vicarious Liability

By Kevin Adler

Courts have occasionally concluded that a franchisor might be liable for the actions of its franchisee or for harm suffered on the premises of a franchisee. Rarely do these issues arise in the most common form of vicarious liability claim, those related to the actions of an employee, because franchisors have been very successful at writing contracts that make it clear that franchisees are employing their workers, not franchisors.

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