Classy Antique Motels is a chain of older motels most of which were originally built in the 1950s and 1960s.The idea is to distinguish these older motels from the many older motels that have become "run-down" or "seedy." Each motel retains it original name and sign,but has an additional sign that says,"Member of Classy Antique Motels." One of the chain's slogans is,"Stay at original motels,often with the original owners." The franchisor provides group marketing and management assistance in exchange for an initial fee to become part of the chain,and a continuing fee based on gross revenues.One of the franchisee motel owners allowed the conditions at his motel to deteriorate to the point that it is now a popular location for illicit drug transactions.A guest was injured from gunfire arising out of a drug deal at the motel.Can the guest recover from the franchisor?

Question

Quizplus · Accepted Answer

The franchisor cannot be held liable in this situation because there is no agency relationship between the franchisor and the franchisee's actions. The franchisor provides group marketing and management assistance, but does not actively control the operations of each individual motel. The misconduct of the franchisee is not attributable to the franchisor in this case.

Classy Antique Motels Is a Chain of Older Motels Most