Monthly Archives: October 2013

Franchises & The Law: How Liable is a Franchise for Actions of Franchisees’ Employees?

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Patterson v. Domino’s Pizza, LLC, the California case that involves a sexual harassment claim by a franchisee’s employee once again raises the question whether a franchisor can be deemed a franchisee’s “employer” for certain purposes. Patterson, a Domino’s employee claimed that her assistant manager both sexually harassed and sexually assaulted her. When filing suit, Patterson listed both the franchisee and Domino’s liable for her sexual harassment. The reasoning behind this was that both the franchisee AND Domino’s were the supervisor’s “employers”, and therefore made them vicariously liable for his actions.

The appellate court was faced with a challenge: how liable is a franchise for the actions of individual franchisees’ employees? The appellate court stated that the “franchisors interest in the reputation of its entire system allows it to exercise certain controls over the enterprise without running the risk of transforming its independent contractor franchisee into an agent.” However, the court went on to explain that although this is generally true, because of this substantial control over franchisee’s local operation as well as management-employee, the franchisor can be subject to vicarious liability. The franchisee’s testimony stressed this issue of control, as he said that he had to abide by the hiring and firing rules given by the Domino’s area representative. California’s court decided that Domino’s actually can be liable for sexual harassment of a franchisee’s employee. (2012 Cal. App. LEXIS 753)

What does this mean for franchisees? Franchisees can certainly have a specific disclaimer for employment relationships to help protect them from liability. It could also be a reminder for franchisors everywhere to review their operations manuals and determine standards for what a franchisor actually has control, and therefore potential liability, over. I can only imagine that this case, along with several others in the past few years in Massachusetts, Connecticut, Oregon, Pennsylvania, and Florida, has made franchises more cognizant about sexual harassment laws and regulations.

What do you think about the ruling of this case? How much liability should a franchisor hold? Does a franchisor’s right to set standards for franchisees’ employees’ appearance and its involvement in hiring and firing decisions make them reliable for sexual harassment cases? Leave your opinions below!

It’s in the Water: Brooklyn Water Bagels

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What makes a good bagel good? Any New Yorker will tell you it’s the water.

Bagels, first introduced to America by Polish-Jewish immigrants in the 1880s, have become a signature bread in New York City and its surrounding boroughs. When Polish immigrants passed through Ellis Island, they brought with them the delicious recipe, which is said to be made best with New York City tap water.

Many New York bagel enthusiasts claim that when transient populations of New Yorkers first got down to places like South Carolina and Florida and began making bagels, they realized that while their flour and ingredients were the same, their bagels did not taste the same. The missing ingredient was, of course, the tap water. New York City tap water has a pH level of 7.2; whereas a pH of 7.0 is considered pure water. The pH level affects the way in which proteins in the mixture denature, and therefore can cause a change in the way the yeast rises and the dough tastes.  Additionally, New York City water has optimal quantities of calcium and dissolved minerals, strengthening the wheat protein and causing the bagel to taste chewier – a texture many bagel lovers enjoy.

So what is a bagel shop in Florida to do? In steps Brooklyn Water Bagels, a bagel shop franchise originated in Delray Beach, Florida. The CEO, Steven Fassberg, a Brooklynite relocated to the Delray area, began working on recreating New York City’s tap water with his own machinery, adding ingredients like calcium and magnesium to replicate the makeup of the water.  When he perfected the water, bada-bing, he began making bagels that tasted just like a New York authentic bagel.

Today, Brooklyn Water Bagel has locations all over the country. Serving everything from breakfast sandwiches to iced coffee made with frozen coffee cubes, Americans everywhere can enjoy a good ol’ New York bagel.  The proprietary water treatment technology system that the franchise has at each location “Brooklynizes” the water, as they call it, and is designed “to provide limited maintenance operation for the franchisee via satellite monitoring of each store’s water system to ensure consistent quality.”

Is there a Brooklyn Water Bagels near you? Leave comments below!