Question

Suppose that a franchisor requires the franchisee to purchase a particular type of van that will be used to deliver the franchised carpet-cleaning services to the public. If the van is involved in an accident that causes injury to a person, should the franchisor be held liable for the injuries? What are the arguments for and against holding the franchisor liable under the circumstances?

Answer 1

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In the given case, we can see that the franchisor requires the franchisee to purchase and operate a particular type of van as a part of their business model. It is a requirement by the franchisee to have to abide by this decision as based on the contract between the two. Yet, what happens at the day to day level of operations by the action of the franchisee cannot be blamed on the franchisor'decision as the van in a part of their business model. Yet, while we take into account the court of law, we have to think about the incident in a different perspective. Anything that the franchisee is a part of the franchisor can be linked back to, therefore, the franchisor can be held liable for the injuries that are caused by the van even without actual involvement.