As franchise systems evolve to offer more robust operational support—through field visits, recruitment tools, onboarding resources, and training programs—franchisors must take care to avoid unintentionally stepping into an employment relationship with their franchisees’ staff.

This session will outline the current legal framework around joint employer and common employer liability and offer practical insights on how franchisors can provide strong, consistent system-wide support without crossing the legal line into employment control.

In Canada, inconsistent decisions from labour boards and human rights tribunals have created uncertainty for franchisors—some rulings have found joint employment relationships exist, while others have not. At the same time, recent (now withdrawn) U.S. regulatory efforts continue to influence thinking around control and liability across North American franchise systems.

What’s the difference? While joint employer status involves two separate entities both exercising meaningful control over an employee, common employer findings treat multiple entities as a single integrated employer. Either can result in shared liability for employment standards, terminations, or human rights violations.

Through a legal overview and operational case examples, this panel will explore how to manage this evolving risk—including internal training, documentation practices, HR toolkits, and system-wide alignment strategies.

Discussion Focus:

• Legal definitions and recent case law: what franchisors need to know

• How franchisor support (training, HR, recruitment) can trigger liability

• Structuring operations manuals, field visits, and internal education to avoid overreach

Learning Objectives:

1. Understand how joint employer and common employer liability can arise in the context of franchise operations.

2. Learn how recent developments in Canadian case law—and broader U.S. regulatory efforts—may impact franchisor risk management.

3. Gain practical guidance on how to support franchisees effectively while maintaining legal and operational boundaries.