The California Supreme Court has reversed an appellate court's decision pertaining to a sexual harassment case at a Domino's Pizza franchised location. The appellate court had ruled that Domino's Pizza, the franchisor, could be held liable for the actions of a manager at a store franchised to Sui Juris LLC. The state's Supreme Court, in a 4-3 ruling, determined that the franchisor can't be held liable for the actions of that manager.
In the ruling, it was stated that Domino's didn't have the duty or the right to control the day-to-day operations of the store and couldn't be liable for issues that arise due to those operations. Those operations include supervising employees, controlling payroll, scheduling employees or training employees. Because of the lack of control afforded to the franchisor, all of which was transferred to the franchisee in the franchisor-franchisee contract, the franchisor wasn't liable for the actions of a representative of the franchisee at the store.