Domi-Nose Franchisee Could Lose Franchise
April 24, 2009 by Sean Kelly
Filed under Business
The Conover, North Carolina Domino’s franchisee whose employees filmed themselves doing gross things to a customer’s food, then posted the video on YouTube, may get disenfranchised.
Get the backstory here: Domino’s YouTube Employees Arrested
According to a WCNC report:
CONOVER, N.C. — The owner of a local Domino’s Pizza could lose his franchise because of fallout from a YouTube video that showed his employees doing disgusting things to customers’ food.
Domino’s Pizza corporate honchos are heading to Conover later this week to talk with the franchise owner about the now-famous video.
Domino’s officials say the intent of the meeting is to discuss whether the owner will lose his restaurant.
The video shows former employee Michael Setzer putting cheese into his nose and then onto a sandwich, while another former employee, Kristy Hammonds, narrates, saying the food will be sent to “some unlucky customer.”
Hammonds and Setzer were fired and charged with contaminating food.
WHAT DO YOU THINK? SHARE A COMMENT BELOW.
Image: Domino’s















It will be interesting to see whether or not Domino’s will try to take the business from the franchisee!
I don’t think they will because if the franchisee fights back, this would only prolong the bad publicity and the issue. The courts have been looking at UNFAIR and ARBITRARY terminations as of late, and how could the franchisee be responsible for these employees, who are “morons” or were “just having fun” or what?
The franchiSOR escapes vicarious liability for what employees of franchisees do as long as their MANUALS prohibit certain types of behaviour. It can’t be that training manuals will now have to indicate that employees will wear gloves at all time, wash their hands after they go to the bathroom, and NOT blow their noses in the food or spit in the food in the preparation of the food, etc..
In reality, this will probably increase Domino’s business because “negative” publicity is still publicity and people are smart enough to know that this was just a “prank” and that this kind of activity only goes on in higher priced food restaurants where the customers send back food items to the kitchen, etc… and “tick off” the Chef and the waitress who are having a bad day.
Just where are registered sex offenders supposed to work, Sean? In Nursing Homes or Childcare Centers?
I’m sure Domino’s could make it tough for the franchisee under their contract but I still think that the courts would hesitate to make case law that franchisees are responsible for the conduct of employees when the franchisees have tried their best to train and control their employees, in their own best interests.
I don’t think the courts would make caselaw that fast food franchisees are negligent when they hire sex offenders or those with criminal records because under our system, these offenders are supposed to be returned to society and be allowed to earn a living.
…how could the franchisee be responsible for these employees, who are “morons” or were “just having fun” or what?
The franchisee hired the morons, one of which is a registered sex offender. The franchisee also failed to adequately supervise their behavior, and to make sure they stayed in compliance with both Domino’s and state health requirements.
I don’t think it would be too difficult for Domino’s to hold the franchisee responsible. Franchisees are constantly being sued for both moronic and harmless actions of their employees.
I doubt very much that Domino’s will gain any benefit from this bad publicity.
Carol: Employment counselor for sex offenders is one role I’ll pass on… but have at it.
Over the years I have been amazed at franchisees who don’t think twice about leaving their million-dollar businesses in the hands of employees they wouldn’t trust to drive their $30K cars around the block. This is who the Conover, NC franchisee turned over the keys to his business to:
“…Hammonds… was charged in 2006 with three counts of statutory rape and pleaded guilty last June to a reduced count of misdemeanor sexual battery. According to a Superior Court indictment, a copy of which you’ll find below, Hammonds (who was charged under her married name), sexually abused the teenage girl over a four-month period… As part of her plea deal, Hammonds was required to register as a sex offender and ordered ‘not to be alone with anyone 16 or under, with the exception of her own children.’ She was also placed on probation for two years, hit with a 60-day suspended jail sentence, and fined $1941.”
The indictment is posted here: http://www.thesmokinggun.com/archive/years/2009/0416091dominos1.html
Her Sex Offender registry entry is here: http://ncfindoffender.com/details.aspx?SRN=016454S11
It’s a cautionary tale for business owners… be careful who you hire and leave unsupervised, because it can cost you dearly.