Janitorial franchise Coverall is receiving a $3 million bill from a Massachusetts court this week in a lawsuit other franchisors are watching closely. At the heart of the case is a controversy over whether some franchise owners aren’t franchisees at all, but rather employees who’ve had to pay fees for the right to have their job.

The court ruled last fall that the Boca Raton, Fla.-based franchisor must pay back the franchise fees over 100 people undefined mostly new immigrants undefined paid the company, plus interest and lawsuit costs. The court’s opinion? Privately held Coverall misclassified its employees as franchisees, so their fees should be refunded.

More at source: Forbes