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Biden Administration Plans on Resort Fee Crackdown

Resort and amenity fees have long been common practice throughout the hospitality industry, first emerging in the late 1990s. The FTC reports that by 2015, hospitality fees accounted for one-sixth of total revenue in the...more

SBA Releases Application and Guidelines for $28.6 Billion Restaurant Revitalization Fund

The American Rescue Plan Act of 2021 (ARPA) includes a $28.6 billion subsidy for eligible restaurants. Termed the Restaurant Revitalization Fund (RRF), these funds are intended to help eligible restaurants offset revenue...more

Chipotle's Record $25 Million Fine Sends Tough Message as the Restaurant Industry Begins Reopening

Chipotle Mexican Grill Inc. agreed to pay a $25 million criminal fine, the largest ever in a food safety case, to resolve criminal charges related to the company's involvement in foodborne illness outbreaks that sickened more...more

Franchise Disclosure Documents and COVID-19 Impact

Franchisors renewing their Franchise Disclosure Documents (FDD) for 2020 with the intent of actively resuming franchise sales activity may be wrestling with how best to disclose the impact of the COVID-19 Pandemic on their...more

How Franchisors Can Benefit from the Qualified Business Income Deduction

Many franchisors and franchisees operate for tax purposes in pass-through entities (LLCs, S corporations, partnerships, and entities that are disregarded for tax purposes). The owners of pass-through entities pay tax at...more

The Perfect Financial Storm Hits Franchising

Readers may remember the book and movie The Perfect Storm in which a confluence of dynamic weather events produces a monstrous Atlantic storm that sinks a fishing boat and causes other havoc on the high seas....more

Avoiding Pitfalls for Private Equity Investors in Franchisors: Structure Counts

Private equity-owned franchise systems are flourishing. Private equity firms are attracted to a franchisor's continuous royalty stream; an organizational structure where the franchisees' drive to succeed aligns substantially...more

Regulation A+: A Capital-Rising Method that is Ready for Franchising

In a prior article published in Franchising Today, we addressed the intersection of franchises and crowdfunding, a method of business financing which was made legal through rulemaking on the part of the Securities and...more

SBA Changes the Game

On November 22, 2016, the Small Business Administration released SOP 50 10 5(I) (the "SOP"), which is administrative speak for new standard operating procedures affecting loans to businesses involved in franchising. The...more

California Dreams Becoming Reality for Franchisees; Amended Franchise Relationship Law Nears Passage

The California State Assembly saw the seventh amended version of proposed changes to the California Franchise Relationship Act (CFRA) introduced August 17, 2015. This amendment is the product of industry negotiations that...more

NLRB General Counsel Office: McDonald's, USA, LLC and Its Franchisees Are Joint Employers

The National Labor Relations Board Office of Public Affairs announced on July 29, 2014 that the General Counsel of the National Labor Relations Board has authorized complaints against McDonalds, USA, LLC (McDonald's) and...more

Hospitalitas Newsletter - Spring 2014

In This Issue: - Your Grandmother Doesn’t Work for Free: Volunteer and Intern Positions Under Closer Scrutiny - Excessive Celebration – Penalty Declined - Four Crisis Management Lessons from the...more

IFA Legal Symposium Report

For our readers who did not attend the early May International Franchise Association Legal Symposium held in Washington, we pass along these observations...more

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