Balderas v. Howe

SPINDEN, Presiding Judge.

Although franchising is an agency relationship, application of traditional principles of agency law to franchises is complex. That became apparent to the trial court as it endeavored to determine whether a franchisor, Dollar' Rent-A-Car Systems, Inc., must defend a tort action involving the alleged negligent operation of an automobile by an employee of Dollar’s franchisee, Nexus Rent-A-Car, Inc.

The appellants sued Dollar, Nexus, and Nexus officials to recover their damages arising from an automobile collision. The trial court concluded that Dollar’s liability was not…