Franchisors, like other members of the distribution channel, are now increasingly exposed to product liability litigation. With the advent of strict liability for faulty products and the extension of negligence to include franchisees’ employees, franchisors must become aware of methods that will enable them to lessen their product liability exposure while also minimizing consumers’ injuries. Cases involving potential franchisor liability are analyzed to create a set of guidelines for franchisors to follow to achieve this reduced legal vulnerability.
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