Antitrust & Trade Regulation Franchise General Business

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The Competition and Markets Authority's consultation on "Competition in passenger rail services in Great Britain" - On 17 July...

On 17 July 2015, the Competition and Markets Authority (CMA) published its consultation document regarding competition in passenger rail services in Great Britain. This followed its announcement in January that it intended to...more

What’s an Exclusive Territory?

The extent of a franchisee’s territorial rights is the subject of Item 12 of the franchise disclosure document (FDD). One of the questions franchisors must address in Item 12 is whether the territory is exclusive....more

FTC settles with two companies over misrepresentations of safe harbor compliance

The Federal Trade Commission (FTC) announced last week that it is settling investigations against American International Mailing, Inc. and TES Franchising LLC alleging that each were misrepresenting to consumers that they...more

Traditional Franchise And Beer Distribution Relationships: A Legal Comparison

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

The ACCC's hunt for franchisors starts with AU$500,000 penalty

In a wakeup call for franchisors, the Federal Court earlier this week imposed an AU$500,000 penalty on South East Melbourne Cleaning Pty Ltd (formerly Coverall Cleaning Concepts South Easy Melbourne Pty Ltd) (Coverall) for...more

FRANCHISOR 101: Accidental Franchises in Industries Not Typically Associated With Franchising

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

Navigating the Cyber Liability Storm - Part II

Franchisors are facing a precarious three-way intersection of increased accountability and regulation over consumer privacy, the growing volume and sophistication of cyber-attacks on consumer data, and the expanding...more

Navigating the Cyber Liability Storm Part I

Franchisors are facing a precarious three-way intersection of increased accountability and regulation over consumer privacy, the growing volume and sophistication of cyber-attacks on consumer data, and the expanding...more

Employer Threatened with Legal Action Over Broad Use of Non-Competition Agreements

On their face, post-employment non-competition agreements seem like a great idea. What employer wouldn’t want to keep their employees from jumping to a competitor? However, one employer’s experience with broad use of such...more

Georgia Court of Appeals rules franchisees can assert claims for relief under Georgia’s tort statute for violating the FTC...

The Georgia Court of Appeals recently upheld a judgment entered on a jury verdict against a franchisor for violating the Federal Trade Commission’s Franchise Rule, 16 CFR Parts 436 and 437 (the FTC Rule), finding that the FTC...more

Lines Drawn In Tesla Direct Sales Battle

Elon Musk's battle to sell Teslas directly to consumers continues. In the last five months, the governors and legislatures of Pennsylvania and New Jersey and, now, even the White House, have taken stands on whether or not...more

Breach of the Australian Franchising Code to result in fines

As foreshadowed by the Coalition Government earlier this year (see our previous update), penalties for breach of the Franchising Code of Conduct (Franchising Code) are to be introduced....more

Doing Business in Canada: Marketing & Labeling Legislation

MARKETING & LABELING LEGISLATION - In Canada, the federal Competition Act prohibits certain marketing activities, which include: • Resale price maintenance • Predatory pricing • Price discrimination •...more

To Be a Franchise or Not to Be….

When starting a new business, many people toy with the idea of opening a franchised business. What is a franchise, exactly? Legally speaking, a franchise has three components: 1) license of trademarks and systems, 2)...more

Here we go again: Australian government releases draft amendments to the Franchising Code of Conduct

The Australian government has released an exposure draft of amendments to The Trade Practices (Industry Codes – Franchising) Regulations 1998 (the Franchising Code of Conduct) and relevant provisions in the Competition and...more

Franchising Update - Winds of Change Arrive

In previous Franchising Updates, we reported on the Wein Review of the Franchising Code of Conduct (Code) and the Abbott Government's response to the recommendations in the Wein Report. On 2 April 2014, the Government...more

Major Amendments To Franchising Code Foreshadowed: The Australian Government Has Today Released An Exposure Draft Of The...

Stakeholders are invited to comment on the draft bill and Regulations by 30 April 2014 with the changes expected to take effect from 1 January 2015. The highlights of the amended Regulations include: Increased...more

Ownership Of Competitive Franchise Systems: Risks And Rewards

Franchise systems have been, and continue to be, sought-after investment and acquisition targets. As a result of this, the demand for ownership of franchise systems often exceeds supply. In fact, there has been almost a...more

Reviewing Franchising and Business Opportunity Fundamentals

After creating a successful business model, expansion becomes the next natural step. But such growth usually requires the involvement of third parties, especially if resources are limited. There are several ways to expand...more

Franchising Update - February 2014

To begin 2014, we remind franchisors of the Government's response to the changes to the Franchising Code recommended last year. On 6 January 2014, Small Business Minister Bruce Billson advised that the Coalition advocated...more

Global Connection - November 2013

In today’s global marketplace, companies need to be informed about foreign laws and practices that impact, or may potentially impact, their businesses in the various regions they serve. This edition of Global Connection...more

States propose revising the "relationship" between franchisors and franchisees

In the '90s, we witnessed efforts by franchisee rights advocates to introduce federal franchise legislation to protect franchisee interests in their relationships with franchisors. In connection with the FTC reviewing and...more

Supreme Court of Ohio Clarifies Beer and Wine Franchise Law

Last month the Supreme Court of Ohio helped clarify an oft-litigated feature of the state’s beer and wine “franchise” law. Like most such enactments, Ohio’s franchise law (the “Ohio Alcoholic Beverages Franchise Act”)...more

Focused On Franchise Law - October 2013

FRANCHISOR 101: PRINCIPALS NOT LIABLE UNLESS THEY PARTICIPATE IN FRAUD - In Sig, Inc. v. AT&T Digital Life, Inc., a federal district court in Miami held that the principal officers of a home and business security and...more

Australia: Commonwealth Government Responds To The Review Of The Franchising Code Of Conduct

The Australian Government has released its response to the review of the Franchising Code of Conduct (Report) and has accepted in full or in principle the majority of recommendations made by the independent reviewer and...more

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