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Texas Franchisors

Foley & Lardner LLP

Texas Supreme Court Limits Franchisor Liability in Franchisee Sexual Assault Case

Foley & Lardner LLP on

On May 2, 2025, the Texas Supreme Court held that a franchisor owes no duty of care for injuries caused by a franchisee’s employee unless the franchisor retained or exercised control over the hiring of that employee....more

Foley & Lardner LLP

Franchise Agreement Requiring Out of State Mediation Is Unenforceable in California Background

Foley & Lardner LLP on

Dispute resolution provisions in franchise agreements often address how, when, and where parties will mediate. However, the enforceability of these provisions can change depending on the law of the state governing the...more

Fox Rothschild LLP

Texas Supreme Court Reverses Liability Finding Against Franchisor

Fox Rothschild LLP on

A recent Texas Supreme Court decision fully overturned a jury’s finding that a franchisor was liable for the criminal actions of a franchisee’s employee. This decision underscores the importance of a franchisor having clearly...more

Perkins Coie

Texas Bill Protects Franchisors From Joint Employment Liability

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Texas legislators recently passed S.B. 652, which seeks to protect franchisors from employment liability for the actions of franchisees. Enacted in June 2015, S.B. 652 amends the Texas Labor Code to specify that a franchisor...more

FordHarrison

New Texas Law: Is it Enough to Ease Concern Over Franchise Liability for Employment-Related Claims?

FordHarrison on

In response to concerns of franchisors that recent National Labor Relations Board (NLRB) actions threaten to undermine the common understanding of a franchisor-franchisee relationship, the Texas Labor Code was amended by the...more

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