Injured at a Chain Restaurant in North Carolina? Who’s Liable—Franchisee, Franchisor, or Both?

Franchise restaurant growth and what it means for injured customers

Industry news outlets are predicting that the next few years will be a “year of stability” for franchise restaurants after a rocky stretch. Groups like the International Franchise Association expect thousands of new fast-food and fast-casual units to open, even if they fall a little short of earlier forecasts. Franchise owners are watching interest rates, tariffs, and proposed laws such as the so‑called American Franchise Act, which is aimed in part at limiting how often big brands can be held legally responsible for what happens in franchised locations.

For North Carolina families, the question is different: if you are injured at a chain restaurant in Raleigh, Charlotte, Wilmington, or anywhere else in the state, who can be held accountable? And how do new efforts to reduce franchisor liability affect your restaurant injury or wrongful death case?

Understanding how franchise relationships work can make a real difference in a serious claim involving a slip and fall, burn, or food‑borne illness at a brand‑name restaurant.

How franchise restaurant relationships work under the law

When you walk into a chain restaurant, it usually looks and feels like the same brand whether you are in Greensboro or Greenville. But behind the scenes, it is common for that location to be owned and operated by a local business, not the national corporation whose logo is on the sign.

In a typical franchise relationship:

The franchisor is the national or global brand. It owns the trademarks and logos, creates the menu and operating manuals, runs national advertising, and often sets detailed rules about uniforms, food safety procedures, and store layout.

The franchisee is usually a local company (often an LLC or corporation) that licenses the right to use the brand. The franchisee hires and pays the employees, signs the lease, buys equipment, and runs day‑to‑day operations at one or more locations.

Sometimes the franchisee also owns the building and land. In other cases, a separate landlord or commercial property company owns the real estate, and the franchisee is just a tenant. Some franchisees operate many units across several states; others own only one or two stores.

This separation is not an accident. It is designed so that, in many situations, the franchisor can say, “We are just the brand owner. We do not employ the workers at this location, and we do not control every detail of how the store is run.” That argument is at the center of many legal battles over who is responsible when someone is seriously injured at a franchise restaurant.

Who can be held responsible after an injury at a chain restaurant in North Carolina

In North Carolina, most restaurant injury cases are built on negligence. That means showing that a person or business did not use reasonable care, and that failure caused your injuries.

Common claims include:

• Slip and falls on wet floors or greasy kitchen surfaces.
• Falls on broken steps or crumbling parking lots.
• Burns from hot liquids or cooking equipment.
• Food‑borne illness from contaminated ingredients or unsafe handling.
• Injuries from violent incidents made worse by poor security.

In a franchise setting, several different parties may be legally responsible, depending on the facts.

When the local franchisee is usually on the hook

Most North Carolina restaurant injury lawsuits start with the local franchisee. That is because the franchisee:

• Runs the daily operations.
• Hires, trains, and supervises staff.
• Controls cleaning, inspections, and maintenance.
• Is often the named tenant or property owner.

Under North Carolina premises liability law, the business that invites customers onto its property must take reasonable steps to keep the location safe. That can include cleaning spills within a reasonable time, fixing trip hazards, warning about dangers it cannot fix right away, and following food safety rules.

If a franchisee’s employee mops a lobby floor and leaves it slick with no warning signs, or ignores repeated complaints about a broken step, the franchisee can usually be held responsible for the harm that results.

When the franchisor may also share responsibility

Even though franchisors try to shield themselves with contracts, they are not automatically immune in a personal injury claim. Under North Carolina law, a franchisor may be liable when:

It exercises significant control over daily operations. If the franchisor’s rules go far beyond protecting the brand and reach into the details of staffing, safety practices, and on‑site decision‑making, a court may treat the franchisee as the franchisor’s “agent.” In that case, the franchisor can be held vicariously liable for negligence at the store level.

Customers reasonably believe they are dealing with the national brand. Many people have no idea a location is locally owned. All the signs, logos, menus, and advertising point to the big corporation. Under a theory sometimes called “apparent agency,” a franchisor that lets the public believe the store is part of the corporate chain can be responsible when that belief leads a customer to trust the safety of the premises.

The franchisor itself was negligent. A franchisor can also be held directly liable if, for example, it:

• Mandated a store design that created a predictable tripping hazard.
• Wrote a food‑handling policy that ignored known contamination risks.
• Failed to fix a dangerous pattern of injuries happening across many franchise locations.

In those situations, the claim is not just that the local store did something wrong. It is that the national brand created or allowed a dangerous system that harmed customers, including those in North Carolina.

Other potentially responsible parties can include the building owner, a shopping center or property manager, outside cleaning or maintenance companies, and equipment manufacturers. A careful North Carolina restaurant injury lawyer will look closely at all of them.

Why early identification of all responsible parties is so important in serious North Carolina cases

After a serious fall, burn, or food‑borne illness, it is natural to focus on medical treatment and getting through the next day. At the same time, the choices made in the first weeks and months after an incident can shape the legal outcome.

In North Carolina, most personal injury claims have a three‑year statute of limitations, and wrongful death claims usually have a two‑year limit. That sounds like plenty of time. In practice, investigating a franchise accident claim can be time‑consuming, because you may need to identify and analyze:

• Which company actually operated the restaurant on the date of the incident.
• Who owned the building and parking lot.
• Whether there is a separate management or maintenance company.
• The terms of the franchise agreement and related manuals.
• National policies that may have created or failed to fix a hazard.

Chain restaurants also change hands. A unit might be sold to a new franchisee, closed, or rebranded. Corporate structures can be shuffled. As the industry works toward its own “year of stability,” there may be a lot of quiet restructuring in the background. The longer you wait, the harder it can become to find crucial witnesses, video footage, maintenance records, and ownership documents.

Early investigation allows an attorney to:

• Send preservation letters to keep surveillance video and cleaning logs from being deleted.
• Obtain corporate filings to identify each business entity involved.
• Pin down insurance coverage layers for the franchisee, landlord, and franchisor.
• Evaluate whether national policies played a role in the unsafe condition.

In a case involving life‑changing injuries or a death, leaving a potentially responsible party out of the case can mean there is not enough insurance coverage or assets to cover future medical care, lost income, and support for the family. Once the statute of limitations expires as to that party, the door may be permanently closed, even if new information comes to light.

Key points for people injured at chain restaurants in North Carolina

Franchise growth and industry efforts to limit franchisor liability may make the legal landscape more favorable for brands. But North Carolina law still offers strong protections for customers who are hurt because basic safety rules were not followed.

If you are injured at a chain restaurant in North Carolina, it is important to remember:

• The store that served you may be owned by a local franchisee, but the national brand’s policies may still be part of the story.
• Multiple businesses can share responsibility, including the franchisee, landlord, maintenance contractors, and in some cases the franchisor itself.
• Proving who controlled what, and when, usually requires careful investigation and an understanding of both franchise law and North Carolina negligence rules.
• Acting sooner rather than later makes it easier to identify the right parties, preserve evidence, and work within the strict time limits that apply to injury and wrongful death claims.

As the franchise industry pushes toward its own version of “stability,” injured customers and their families still face a system that can be confusing and difficult to navigate alone. Learning how franchise structures affect responsibility is an important first step toward making informed decisions after a serious restaurant injury.