Split 2nd Circuit Upholds Ruling For Cleaning Franchisor On Collection Of Fees

Mealey's (September 13, 2021, 9:51 AM EDT) -- NEW YORK — A divided Second Circuit U.S. Court of Appeals panel on Sept. 9 ruled that a cleaning company franchisor’s compensation scheme, which included an initial franchise fee and ongoing payments from franchisees, did not violate Connecticut law even if the franchisees were found to be employees rather than independent contractors as the case law is clear that such fees are permitted and the franchisees received something of value, franchise rights, in exchange for the fees....