Galant Gadabout (roc441) wrote in thequestionclub,
Galant Gadabout

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Limited Liability

Me and some friends got into this discussion last night, and were unable to answer this question.

Does the limited liability of a corporation extend to its franchise?

The example we used: Quiznos. Each store is an idividually owned franchise of Quiznos LLC.

If someone is injured, for example they get burned on the toaster, I know that the corporation is liable, but is the franchise concidered to be covered under the liability of the corporation, or is a franchise a seperate legal entity from the corporation?

Another sortof related question: Is the owner of a franchise liable, or are franchises similar to corporations where it is concidered it is concidered a seperate legal entity? (or would that depend on whether or not the franchise was owned by a Limited Liability Partnership or an individual?)

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