Freedom from liability to third persons dealing with the franchise holder is one of the main reasons that franchisors grant franchises.

Question

Quizplus · Accepted Answer

Franchisors often grant franchises to enjoy the benefit of freedom from liability to third persons dealing with the franchise holder. This means that the franchisor is not responsible for any legal disputes or liabilities that may arise from the actions of the franchisee, except in cases where the franchisor has taken an active role in creating the liability.

Freedom from Liability to Third Persons Dealing with the Franchise