A federal court recently dismissed employment discrimination claims against a franchisor asserted by its franchisees’ employee after holding that the employee failed to allege facts sufficient to establish that she was an employee of the franchisor. The case is a straightforward illustration of the joint employment doctrine.
Background
In Sharp v. Arthur Murray International Inc., a dance trainer sued a franchisor of dance studios, Arthur Murray, and two of its franchisees. The trainer alleged that during her employment with one of the franchisee studios, she experienced racial and disability discrimination and was terminated after raising these concerns to her manager. After her termination, she alleged that she was transferred to a second franchisee studio, where she again faced racial discrimination and was wrongfully terminated after filing a workers’ compensation claim.
The trainer filed suit against both franchisee studios and Arthur Murray, as franchisor, in the U.S. District Court for the District of Maryland for racial and disability discrimination, hostile work environment, retaliation, and wrongful termination under federal and state employment laws, including Title VII, the ADA, and the Maryland Fair Employment Practices Act (MFEPA).
Arthur Murray subsequently filed a motion to dismiss arguing that the trainer failed to allege facts establishing that it employed her.
The Court Granted the Franchisor’s Motion to Dismiss
On or about October 16, 2025, the Court...
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