Hugs! 7-Eleven Franchisees Are Not Employees, Court Rules

Have you ever heard the expression, “I was so happy I could hug a goose”?

Me either. That’s because it’s not an expression. But no one told the sculptor here.

I took this photo while touring the gardens at a villa in Varenna, Italy. I am still haunted by the image. The goose seems none too pleased, but the boy is playing him like a guitar, no matter the feelings of the goose.

Franchise owners in Massachusetts are so happy that they could hug a goose after a recent Massachusetts Supreme Court ruling.

For years, there’s been ongoing litigation in which five 7-Eleven franchise owners sued 7-Eleven, claiming to be employees of the franchisor. The franchise industry has been closely monitoring the case because a ruling for the plaintiffs could threaten the franchise model.

The case has twice been before the Massachusetts Supreme Court. The first time, the Mss. S.Ct. ruled that individual franchise owners could, potentially, be deemed employees under the Massachusetts ABC Test if the individuals were “performing any services” for the franchisor. This ruling, in 2022, merely answered a hypothetical question, but the answer made franchisors nervous.

The litigation continued and made its way to the Mass. S.Ct. a second time. This time the issue was whether the individuals, by operating their stores as 7-Eleven franchises (and following 7-Eleven brand guidelines, etc.) were “performing any services” for the franchisor.

In a goose-hug-worthy decision, the Mass. S.Ct. ruled in late September that “the franchisees operate independent stores not for 7-Eleven
but rather for themselves.” Therefore, they are not performing services for the franchisor, and they cannot be deemed the franchisor’s employees.

This is great news for franchisors (and bad news for plaintiffs’ lawyers). Celebrate however you think is best, but please consider the feelings of the goose.

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© 2024 Todd Lebowitz, posted on WhoIsMyEmployee.com, Exploring Issues of Independent Contractor Misclassification and Joint Employment. All rights reserved.

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