Legal Question in Business Law in California

Re: Parent Company responsibility for franchisee advertising and work performanc

Your question is too sketchy and omits too much information to give a useful answer.

First, what is meant by "under the prominent heading"? Sounds like the franchisee ran ads using the franchisor's name. If so, was this authorized? What kind of disclaimer might have been used? Why?

Also, a franchisor and franchisee are not usually in what would be considered, legally speaking, a parent - sibling relationship, such as a corporate parent and its subsidiary. The relationship is usually and for most purposes more just that of two parties in contract with one another.

Also, the question arises as to whether the "responsibility" potentially being disclaimed is between the franchisor and the franchisee, or between one of them and a third party, such as a customer of the franchisee.

I would say that as a general rule responsibility (i.e. liability) between the franchisor and the franchisee will depend upon the franchise agreement, and responsibility (liability) to customers and other outsiders will depend on what the customer or outsider could reasonably believe or expect based upon the advertising.

Thus, the franchisor might have to pay damages to the customer, but might be able to recollect from the franchisee.

This is all pretty hypothetical, and a useful answer will require many more facts.

Re: Parent Company responsibility for franchisee advertising and work performanc

Need to see your Franchise Agreement...before we can advise.Take a look at my site at www.lawyers.com/amyghosh