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Does a Franchisor Have Liability for Agreements or Liabilities of a Franchisee?

Date: 01/22/2015 | Category: Buy a Franchise | No comments

Franchisors, generally, are not liable for the contracts or obligations of a franchisee. Typically, franchisors and franchisees are distinct and separate legal entities from one another. The business dealings of a franchisee are distinct and separate from the franchisor and a franchisor should not be liable for the contracts or agreements of the franchisee.

However, there are always exceptions and certain limited fact-specific situations where a franchisor (through its actions) may be held liable for franchisee obligations.


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