The franchise business structure creates a separation between the franchised business and franchise units. The units exist as separate entities to the franchised business. As a result of this structure, you do not share a clear-cut relationship with franchisees\u2019 employees. This article explains the legal relationship franchisors share with their franchisee\u2019s employees and the franchisor’s responsibility that may arise.\u00a0<\/p>\n\n\n\n
In a business, to have legal responsibility for another person often means a relationship of employment exists. You share a contractual franchisor-franchisee relationship, which you create and define in your franchise agreement<\/a>. Therefore, franchises typically do not create an employment relationship, and franchisees are generally not considered employees. They are usually regarded as independent contractors, meaning they would be responsible for their own employees. <\/p>\n\n\n\n While franchisors are not ordinarily directly responsible for the franchisees\u2019 employees, the responsibility you owe will depend on specific contracts you have in place and the relationship you share with franchisees.<\/p>\n<\/div>\n\n\n\n There is no specific UK law relating to franchises. However, two areas of law are particularly relevant to determining your employment-related responsibility level: contract law and employment law. <\/p>\n\n\n\n You can review the terms of your franchise agreement and further contracts you share with franchisees to determine (and limit) your responsibilities towards the franchisees\u2019 employees. Your level of commitment can vary based on contractual arrangements. The terms within these contracts govern your duties and responsibilities towards franchisees\u2019 employees. Accordingly, thoroughly check these documents if you are unsure of your obligations.<\/p>\n\n\n\n Despite not being typically considered your employees, the responsibilities you owe to franchisees\u2019 employees can form the basis of the type of relationship you share with them. Judges tend to avoid establishing an employment relationship between franchisees and franchisors. These decisions retain a degree of separation between yourself and your franchisees\u2019 employees. <\/p>\n\n\n\n Courts are typically reluctant to establish an employment relationship between franchisors and their franchisees\u2019 employees. However, this may change depending on the particular circumstances of a case. A judge will look at the specific events of each case to determine whether a relationship of employment<\/a> exists. If a franchisee, their employee, or another person takes a matter to court, the judge will look at the circumstances of your relationship with the franchisees and their employees. <\/p>\n\n\n\n Whether you have an employer-employee relationship can be based on the level of control you exercise as a franchisor. A judge may consider you an employer if you exercise a lot of control over the operations of individual franchise units and the franchisees\u2019 employees. Such a level of control creeps beyond the usual responsibilities of a franchisor and could mean you would owe further responsibilities towards franchisees\u2019 employees. This can result in a very legally complex issue. <\/p>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\nThe UK Legal Framework<\/h2>\n\n\n\n
Contract Law <\/h3>\n\n\n\n
Employment Law<\/h3>\n\n\n\n