Winter 2019 - Volume 38, Number 3

Drawing Lines in Franchisor Support— Is It Necessary and Where Are the Lines to Draw in Today’s Joint Employment Environment?

Joyce Mazero, Karen Boring Satterlee, Eric H. Karp, Leonard H. MacPhee, Jess A. Dance & William W. Sentell

Few question why a company would want to become a franchisor. Entering into franchisor-franchisee relationships provides franchisors with the opportunity to expand their systems more rapidly and without the capital investment or leverage that would otherwise be required to develop and operate company-operated units and without exposing itself to the risks of various external challenges, such as rising labor costs. A more frequently asked question is why the counterparty in the franchise relationship, the franchisee, is motivated to enter into a franchise relationship.