Franchise employees in British Columbia have the same basic employment rights as other workers. Whether you work at a restaurant, retail store or another franchise business, you’re protected by BC employment laws.

If your franchise closes, changes ownership or fires you, you may also be entitled to severance pay.

Here’s who your employer is, what happens when a franchise is sold and your rights if you lose your job.

💡 Know Your Rights: Franchise employees can qualify for full severance pay, including part-time and hourly workers. In appropriate cases, severance can reach up to 24 months’ pay.

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Who Is Your Employer if You Work at a Franchise in BC?

Your employer is usually the franchise owner who operates your location, not the larger company whose name is on the building.

For example, a restaurant may operate under a national brand while being independently owned by a local business.

The franchise owner is usually responsible for:

  • Paying your wages
  • Setting your schedule
  • Hiring and firing employees
  • Handling workplace complaints
  • Providing severance pay when owed

The larger franchise company may set brand standards or influence operations. Its legal responsibility depends on its actual relationship with the employees.

What Employment Rights Do Franchise Workers Have in BC?

Franchise employees are protected by BC’s Employment Standards Act. These protections apply to eligible full-time, part-time and hourly employees.

Your rights include:

  • Wages: At least the applicable minimum wage and payment for work completed
  • Overtime: Extra pay when you work qualifying overtime hours
  • Vacation: Vacation time and vacation pay
  • Stat holidays: Holiday pay when you qualify
  • Sick leave: Paid and unpaid sick days under BC law
  • Severance: Compensation when your employment ends without cause

Your employer can’t deny these protections simply because you work for a franchise.

Learn more about the BC Employment Standards Act, overtime pay and statutory holiday pay.

What Happens to Employees When a Franchise Is Sold in BC?

When a franchise is sold and your employment continues with the new owner, your previous service still counts under BC’s Employment Standards Act.

For example, if you worked at a franchise for six years before it was sold, the new owner can’t simply treat you as a brand-new employee for statutory termination pay purposes.

Your accumulated service also matters for vacation and other employment standards entitlements.

What If the New Owner Doesn’t Keep You?

If the previous owner terminates your employment before selling the business, that owner is responsible for outstanding statutory wages and termination pay.

If your employment continues through the sale and the new owner later fires you, the new owner must recognize your previous service when calculating statutory termination entitlements.

A sale also doesn’t give the new owner unlimited power to change your employment terms. Major cuts to your wages, hours or responsibilities can be constructive dismissal.

Learn more about employee rights when a business is sold in BC.

What If Your Franchise Closes in BC?

If your franchise closes and you lose your job, you can still be entitled to severance pay.

This includes closures caused by:

  • Poor sales or financial problems
  • The franchise owner retiring or selling
  • The franchise agreement ending
  • Corporate restructuring or downsizing

A business closure doesn’t automatically eliminate severance rights. Bankruptcy and insolvency can create different rules.

If several locations close and large numbers of employees lose their jobs, BC’s group termination rules may also apply.

How Much Severance Pay Do Franchise Employees Get in BC?

Non-unionized franchise employees can be entitled to up to 24 months’ pay when they lose their jobs. Your full severance depends on more than the minimum amounts in BC’s Employment Standards Act.

The key factors include:

  • Your age
  • Length of employment
  • Position and responsibilities
  • Availability of comparable work
  • Your employment contract

Part-time, hourly and salaried workers can all qualify. Severance can include lost wages, benefits and other compensation.

Don’t accept a few weeks’ pay without checking your full entitlement.

Use our Severance Pay Calculator or read our guide to severance pay in BC.

Franchise Employees BC: Frequently Asked Questions

Do Franchise Employees Have the Same Rights as Other Workers?

Yes. Franchise employees are entitled to applicable BC employment standards, including wages, overtime, vacation, sick leave and termination pay.

Who Pays Severance When a Franchise Closes?

The business that employs you is responsible for your severance obligations. This is usually the franchise owner operating your location.

Do I Lose My Seniority if My Franchise Gets a New Owner?

No. If your employment continues after the business is sold, your previous service counts under BC’s employment standards. The new owner can’t reset your statutory service simply because ownership changed.

Can Different Franchise Locations Pay Different Wages?

Yes. Independently operated locations can offer different wages and benefits, provided they follow employment laws and applicable employment agreements.

Can a Franchise Owner Cut My Hours or Pay?

A major reduction in your regular hours or wages can be constructive dismissal. You could be entitled to severance even if your employer hasn’t officially fired you.

Can I Be Fired Without Severance if the Franchise Loses Money?

Financial difficulties don’t automatically remove your severance rights. A franchise owner closing an unprofitable location can still owe employees termination compensation.

What If My Franchise Employer Doesn’t Pay Me?

Your employer must pay wages you’ve earned. If your paycheque is missing or money is being deducted illegally, see our guide to unpaid wages in BC.

Fired or Laid Off From a Franchise in BC?

If your franchise has closed, changed owners or fired you, don’t assume the severance package offered is all you’re owed.

The BC employment lawyers at Samfiru Tumarkin LLP help non-unionized franchise employees with wrongful dismissal, constructive dismissal and severance pay.

Before you sign, always check first.

➡️ Get a Consultation or call 1-855-821-5900.

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Consult with Samfiru Tumarkin LLP. We are one of Canada's most experienced and trusted employment, labour and disability law firms. Take advantage of our years of experience and success in the courtroom and at the negotiating table.

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