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Latest Case on Franchisor Liability for Franchisee Underpayment – The Diligence Process for Franchisors Just Gets Harder

Franchisor Liability on the Rise: Lessons from the Baker’s Delight Case The latest case involving Baker’s Delight highlights a growing trend in workplace law — franchisors being held responsible for franchisee underpayments.

Under the Fair Work Act, it’s criminal to underpay workers, and the courts are showing less tolerance for those who “look the other way.” In this case, Baker’s Delight had three franchisors beneath it, and when underpayment was discovered, the question arose: Should the franchisors be held to the same standard of accountability as the franchisee? To hear more about this case and the law surrounding the decision, please click here.

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