Martinez was injured when he was struck by a bicycle being ridden by Pardo. At the time of the accident, Pardo was making deliveries for his employer, Higher Powered Pizza, which was a franchisee of Papa John’s International, Inc. Martinez sued Papa John’s, arguing that it was vicariously liable for the acts of its franchisee.
The franchisee agreement between Higher Powered Pizza and Papa John’s stated that the franchisee “shall have full responsibility for the conduct and terms of employment for [its] employees and the day-to-day operation of [its] business”; the only control the agreement reserved to Papa John’s involved enforcement of standards in areas such as food quality and preparation, hours of operation, menu items, employee uniform guidelines, and packaging requirements. This included the right to perform inspections (limited to review of sales and order forms), audits to ensure compliance with company standards, and observation of interaction with customers.
Should Papa John’s be held liable for the injuries caused to Pardo?