How is a franchise limited liability?

A franchise is considered limited liability because it typically operates as a separate legal entity from the franchisor, which protects the franchisee's personal assets from business liabilities. If the franchise incurs debts or is sued, only the assets of the franchise are at risk, not the personal assets of the franchisee. Additionally, the franchisor usually has limited liability for the actions of the franchisee, provided that the franchisee operates independently and according to the franchise agreement. This structure helps to mitigate financial risks for both parties involved.