Franchisors Not Joint Employers with Franchisees

Jimmy Johns, a fast food franchise, operates, as many franchises do, with their franchisees owning and operating each franchise as independent businesses. Jimmy Johns employs business coaches to ensure franchisees maintain brand standards which may include guidance on hiring and discipline of employees. When a group of assistant store managers (ASM) sued the franchise for misclassification, a district court found the franchise was not a joint employer of the ASMs. This ruling is good news for franchisors, but not all courts view the relationship as entirely independent. Find out more here.