Beer distribution laws differ from traditional franchise laws in many ways, but the two regimes do share some commonalities. As a matter of fact, many states now regulate the relationship between those who brew or import beer...more
In Fantastic Sam's Salons, Corp. v. Moassesfar, a federal court in Los Angeles denied a motion by former franchisees to dismiss Fantastic Sam's claims for breach of contract and trademark infringement based on the contractual...more
A federal court in Sacramento recently upheld a franchisor's forum selection clause and transferred an action brought by an area representative to the federal district court in the Western District of Texas....more
For decades, non-franchise businesses have tried using a quasi-franchise business model (i.e., any business format license) to distinguish themselves from franchisors to avoid onerous franchise investment laws. A recent...more
A new California law has given the California Department of Business Oversight, the State's regulator of franchises, more time to review franchise registration and renewal applications, with the result that franchisors, their...more
On November 25, 2014, the Food and Drug Administration (FDA) released final rules governing menu and vending machine labeling to implement some of the Affordable Care Act's nutrition labeling requirements.
Almost everyone recognizes the nation's most prominent franchises: McDonald's, Domino's, Hilton or 7-Eleven, to name a few. And business people are becoming aware that arrangements that look like franchises, but are...more
In Ruiz v. Affinity Logistics Corporation, another recent delivery driver case that arose in California, Affinity Logistics' drivers claimed they were employees and had been misclassified as independent contractors. The trial...more
In Kroshnyi v. U.S. Pack Courier Services, Inc., a case pending for 13 years (and not over yet), numerous drivers claimed their package delivery franchisor violated New York's franchise law. From 1996 to 1998 the drivers...more
A West Virginia Court refused to dismiss an action brought under its state workers' compensation law. That law permits an employee to recover greater damages when deliberate intent exists.
An employee of a Hardee's...more
There has been a lot of news lately about risks of franchisors being liable for acts and incidents at franchised locations. The National Labor Relations Board's general counsel recently announced he intends to claim...more
Beer distribution laws differ from traditional franchise laws in many ways, but they do share some commonalities. As a matter of fact, many states now regulate the relationship between those who brew or import beer into a...more
In 2010, Steak 'n Shake, a franchisor of hamburger restaurants, adopted new pricing and promotion policies that required all franchisees to follow company mandated pricing on every menu item and to participate in all...more
In 2013, Pepe's Franchising, a U.K. company, entered into a Master Franchise Agreement with Frango Grill, based in California, granting the right to operate and franchise Pepe's restaurants in California. The Agreement's...more
Franchising is a flexible, tried and true method of distributing products and services and offers business owners an alternative avenue to expand their already successful businesses. One immediately thinks of McDonalds or...more
A recent decision in Allegra Holdings, LLC v. Davis demonstrates that courts are enforcing forum selection clauses in favor of out-of-state franchisors and against in-state franchisees, notwithstanding franchise anti-waiver...more
On August 28, 2014, the California Supreme Court reversed a 2012 Court of Appeal decision in Patterson v. Domino's Pizza, LLC. The lower court held that franchise operating systems, like Domino's, deprive franchisees of the...more
There are a number of bills and new laws that craft brewers should have on the radar – legislation that could affect operations and distribution.
In California, two of these bills became law, while one is still pending...more
Competitors of all kinds know home court advantage helps them win. Home court advantage refers to the psychological, procedural and logistical edge gained by competing in a familiar setting, where one has better knowledge of...more
FRANCHISOR 101: When is Unreasonable, Reasonable?
Crown Imports, LLC (Crown) imports Corona beer from Mexico. In 2008, two of Crown's Southern California distributors, Classic and HBC, agreed that Classic would buy...more
FRANCHISOR 101: Franchisor Successfully Fends Off Fraud Claims -
There are circumstances when a fraud claim will not succeed against a franchisor. In Dunkin' Donuts Franchised Restaurants, LLC v. Claudia I, LLC, a...more
PENNSYLVANIA COURT REFUSES TO REWRITE DISTRIBUTION AGREEMENT -
A United States District Court in Pennsylvania, applying Pennsylvania law, recently rejected a distributor's argument that a brewer's refusal to permit...more
FRANCHISOR 101: ITEM 19: MAKE A LIST AND CHECK IT TWICE -
Hardware store franchisor, Ace Hardware Corporation, recently prevailed in several fraud claims brought by two former Indiana franchisees in Avon Hardware Co.,...more
Large Southern California Distributor Acquired By Reyes -
Consolidation continues in the beer distribution business. The number of distributors in the US has dropped by about 1200 since 1980 to around 3200, although...more
FRANCHISOR 101: LEARNING THE HARD WAY -
Franchisors entering into settlement agreements with current or former franchisees must be certain that the agreements give the franchisors the right to make required FDD...more