A federal court in Washington granted in part and denied in part a hotel franchisor’s motion to dismiss, holding that the franchisor may be found indirectly liable under the Trafficking Victims Protection Reauthorization Act (TVPRA) based on vicarious liability principles. Doe v. G6 Hosp. Prop. LLC, 2025 WL 3537626 (W.D. Wash. Dec. 10, 2025).
Jane Doe sued the owners of a franchised hotel and Wyndham Hotels and Resorts Inc., the franchisor of the franchised brand, alleging that sex traffickers exploited her in rented rooms in the franchised hotel and that Wyndam knew or should have known about the trafficking. The TVPRA establishes two types of civil liability: perpetrator liability (knowingly harboring a sex-trafficking victim) and beneficiary liability (financially benefiting from the venture). Doe alleged that Wyndham was subject to both perpetrator and beneficiary liability directly, through theories of vicarious liability and through joint employer liability. Wyndham moved to dismiss, contending Doe’s complaint failed to plausibly allege Wyndham’s actual knowledge of any trafficking necessary for perpetrator liability or Wyndham’s tacit agreement to the venture as required to state a claim for beneficiary liability.
The court agreed that Doe failed to allege direct liability by Wyndham under perpetrator or beneficiary liability theories, but declined to dismiss the claims against Wyndham under theories of vicarious liability or joint employer liability, finding sufficient allegations to support liability under those theories. The court decided Doe alleged extensive control by Wyndham over the hotel operations, including control with respect to crime handling and reporting; employee hiring, training, and discipline; public relations; and the number of pillows on each bed and how each guest is greeted. Doe further alleged that Wyndham required the owners to use Wyndham’s software to manage reservations, payments, and crime data. As a result, the court concluded that, at the motion to dismiss stage, Doe’s allegations concerning the franchisee’s liability could be imputed to Wyndham via vicarious and joint employer liability.
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