Kids R Kids International, Inc.v.Veronica Higgs Cope et al.
A toddler sustained facial injuries in an accident involving a gate at a child-care center run by a local franchisee of Kids R Kids International, Inc. The child’s guardian sued the franchisee and franchisor, alleging negligent supervision, facility maintenance, and protection from an unreasonable risk of harm. The trial court denied the franchisor summary judgment, and Kids R Kids brought an interlocutory appeal. The Court of Appeals of Georgia reversed. Under Georgia agency law, detailed operational standards, brand protections, and inspection or termination rights in a franchise agreement do not alone make a franchisor vicariously liable for its franchisee’s negligence. The agreement assigned the local company daily management and personnel supervision, and the record did not show Kids R Kids controlled how that work was done. The apparent-agency theory also failed because the guardian acknowledged in the enrollment agreement that the center was independently owned and operated and that Kids R Kids was not responsible for its conduct. Summary judgment was therefore required for the franchisor.
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