In Amicus Brief, IFA Law Center Made Case for Untenable Precedent of Classifying Franchisees as Employees;  Calls for Momentous Decision to Impact Broader Independent Contractor Debate

WASHINGTON – The International Franchise Association (IFA) today released the following statement praising the Massachusetts Supreme Judicial Court’s decision in Patel v. 7-Eleven Inc.:

“The momentous decision in Massachusetts will have a far-reaching impact toward protecting franchisees’ roles as entrepreneurs and business owners,” said Michael Layman, IFA senior vice president of government relations and public affairs. “Classifying franchisees as employees, as the plaintiffs unsuccessfully argued, would have undermined franchisee independence and led to an untenable situation for franchisors and franchisees alike, and undoubtedly created confusion, uncertainty, and an increase in litigation in the Commonwealth. We are pleased that common sense prevailed in the Bay State and hope that its precedent impacts the broader independent contractor debate in Washington, D.C. and state capitals across this country.”

The court ruled that 7-Eleven franchisees’ performance of contractual obligations under their franchise agreements does not constitute the “performance of services” for an employer under Massachusetts labor laws. Rather, the franchisees “cloaked their otherwise independent businesses in the 7-Eleven brand, paid 7-Eleven for that benefit, and agreed not to dilute the brand.”

The IFA Law Center filed an amicus brief in the case on behalf of 7-Eleven, available here. 

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