Last week, the California Supreme Court held that Domino’s Pizza, as a franchisor, could not be held responsible for a sexual harassment charge against the manager of one of its franchisees.
International Franchise Association President and CEO Steve Caldeira applauded the ruling, releasing a statement that read in part:
“The California Supreme Court allowed reason to reign when it reversed an appeals court decision that would have allowed a jury to hold Domino’s responsible for an alleged infraction by the manager of one of its franchisees. Franchisees are independent, small-business owners who have complete control over who they hire and how they manage their employees. Decades of legal and regulatory precedent dictate that the corporations from which franchisees license their brands are separate from the franchisees as it relates to employment matters. With this decision by the California Supreme Court, this fact has been affirmed.”