If I am an employee to a franchised business and the franchise I worked at closed suddenly, does the franchisor have any responsibility to pay us?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

If I am an employee to a franchised business and the franchise I worked at closed suddenly, does the franchisor have any responsibility to pay us?

I work for a company that has many locations and one of them closed suddenly with no warning. We are owed our last paycheck and have not received

it yet, 1 week past the pay period. There is a head franchise office, the main

location. Is that creator of the company responsible in any way? How do we get

our money?

Asked on March 12, 2016 under Employment Labor Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

The main office is probably not liable for your paychecks--usually, each franchise location is solely liable for your its own payroll, and the franchises are specifically set up that way to insulate the main office/franchisor from liability. Being a franchisor does not automatically make you responsible for your franchisee's obligations. You should contact the labor deparatment to file a payroll complaint; if they can't help you, trying filing a lawsuit vs. the franchise location and its owners. (Depending on how the franchise was legally structured--e.g. if it was an LLC or corporation--the owners may not be legally liable, but it's worth naming them; let them prove they are not responsible.)


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption