Subway Not Liable for Franchisee's ADA Violation

What Happened: After experiencing what he felt was rude and humiliating treatment by a Subway employee while ordering a steak sandwich, a customer brought an ADA lawsuit against not just the restaurant where the incident happened but the franchisor company, which it claimed was responsible for the disability discrimination committed by its franchisees. The franchisor denied having any liability for the incident and asked the court to let it out of the case.

Decision: The New York federal district court agreed and dismissed the ADA claim against the franchisor.

Reasoning: To be liable for discrimination under the ADA, a person must “own, lease or operate a place of public accommodation.” Since the customer conceded that the franchisor neither owned nor leased it, the issue was whether it “operated” the restaurant where the alleged discrimination occurred. Technically, the franchisee ran the establishment day to day. But the customer claimed that, for ADA purposes, the franchisor was the “operator” because of the control it exerts over its franchisees. But the court didn’t buy it. Case law has made it clear that general or supervisory control over franchisees isn’t enough; for franchisors to be liable as “operators” under the ADA, they must specifically control a franchisee’s accessibility to the disabled. And the customer didn’t provide any evidence showing the franchisor had such control, the court concluded.  

• Sullivan v. Doctor’s Assocs. LLC: 2020 U.S. Dist. LEXIS 11562