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Motel 6 Sued By EEOC for Pregnancy Discrimination

New Orleans Motel Placed Employee on Unwanted Leave of Absence, Federal Agency Charges - NEW ORLEANS - G6 Hospitality, dba Motel 6, unlawfully placed a pregnant employee on leave solely because of the fact that she was...more

FRANCHISEE 101: How Far Do Earnings Projections Go?

A franchisor is allowed to make "financial performance representations" in its disclosure documents. These figures may project how much money a franchisee is likely to make and can play a critical part in the franchisor's...more

District Court: CFPB May Hold Law Firm Owners Individually Liable for Alleged Violations

The U.S. District Court for the Western District of Wisconsin ruled on July 20, 2016, that the Consumer Financial Protection Bureau (CFPB) may hold the owners of two law firms offering debt relief services liable for alleged...more

New Tool to Protect Franchisors’ Trade Secrets

On May 11, 2016, President Obama signed into law the Defending Trade Secrets Act of 2016 (the Act). The Act amends the Economic Espionage Act of 1996 (EEA) to create a federal private right of action for the misappropriation...more

Ohio Court of Appeals Upholds a Successor Manufacturer’s Termination of a Distribution Franchise

The “successorship” provision of Ohio’s franchise law for alcohol beverages has spawned much litigation over the past two decades. Premium Beverage Supply, Ltd. v. TBK Production Works, Inc. represents the latest chapter of...more

Rulings Pose Obstacles to Franchisors Seeking to Stop Wrongful Trademark Use

A series of recent Circuit Court decisions has made it more difficult for a franchisor to enjoin a former franchisee from using the franchisor’s federally registered trademarks after the franchise agreement has been...more

Eighth Circuit Upholds Arbitration Agreement In Absence Of Actual Proof Of Unconscionability Due To Cost

The Eighth Circuit affirmed a decision by the U.S. District Court for the Eastern District of Missouri which rejected the contention that an arbitration agreement was unconscionable, and unenforceable under the Federal...more

Franchisors in Québec have the implied obligation to protect and enhance the brand: the Dunkin’ Donuts case

In a unanimous decision, the Québec Court of Appeal has upheld the decision of the Superior Court which found that a franchisor must take reasonable measures to protect and enhance the value and reputation of its brand. Thus,...more

Georgia Supreme Court to Franchisees: Read Your Contracts!

In July 2001, sisters Michele and Lorraine Reymond approached the defendant, franchisor Legacy Academy, Inc., about the purchase of a daycare franchise to be located in suburban Atlanta. The sisters testified that Legacy...more

March 2015 Independent Contractor Compliance and Misclassification News Update

This past month’s headline developments involve three major developments in the area of independent contractor (IC) misclassification. The first case involves a large department store that agreed to pay most of the costs of...more

Using the Economic Loss Rule to Your Client's Benefit

All lawyers can benefit from having a toolbox of general legal knowledge with which to frame a case to their client's advantage. For business attorneys the economic loss rule is a particularly useful tool. At its...more

Oklahoma Chicken Express Franchiser to Pay $15,000 to Settle EEOC National Origin Discrimination Suit

Restaurants Exploited Class of Hispanic Cooks by Failing to Pay Overtime, Federal Agency Charged - OKLAHOMA CITY, Okla. - NSC Chicken, LP, dba Chicken Express, will pay $15,000 and furnish other relief to settle a...more

Ice Cream Maker No Softee When It Comes to Infringement of Its Trademarks

Just as summer is coming to a close, the battle between Mister Softee and Master Softee appears to be heating up. Mister Softee is a family-owned business that has been in operation since 1956. It is the franchisor for the...more

Trials Are About Truth; Consent Decrees Are About Pragmatism

I recently wrote about Judge Rakoff’s refusal to enter the SEC’s proposed consent decree in SEC v. Citigroup Global Markets, Inc., 827 F. Supp. 2d 328 (SDNY 2011) – and the shift in SEC enforcement policy that it prompted. ...more

Unique Circumstances in Litigation Franchise Class Actions (Revised)

This is an update of an article I first presented with David Sterns in 2011 at the Canadian Institute 12th Annual National Forum on Class Actions Litigation in Toronto, Canada. The other co-authors are Geoff Grove of Osler,...more

Who's in Charge Here? Recent Decision May Cause Headaches for California Franchisors

California is the birthplace of the franchise business model. Today, there are approximately 62,000 independent franchisees operating in California, employing more than 1.1 million state residents. Historically,...more

First Circuit Makes Circuit Split Lopsided In Favor Of Narrowing Impact Of Stolt-Nielsen

With less colorful language than its last arbitration opinion, the First Circuit sided with the Second and Third fireworks Circuits in limiting the application of the 2010 Stolt-Nielsen decision on the availability of class...more

Know Your "Business": Don't Bite Off More Than You Can Chew When Drafting A Covenant Not To Compete

The broadly written scope of the covenant not to compete before the Business Court in Outdoor Lighting Perspectives Franchising, Inc. v. Harders led to the denial of Plaintiff's Motion for a Preliminary Injunction this...more

The Quebec Superior Court’s Recent Judgment in Stereo Plus v. 140 Greber Holding: Shedding Light on Penalty and Legal Expenses...

*Important Note: FMC (Mr. Stéphane Teasdale and Ms. Mélanie Jacques) represented Distribution Stereo Plus Inc. in this case. On January 13th, in the case of Distribution Stereo Plus Inc. c. 140 Greber...more

Osler Update: Suncor Successful in Dismissing Proposed Class Action

Osler Update by Larry Lowenstein and Adam Hirsh of Osler, Hoskin & Harcourt LLP. Summary of recent Ontario Court of Appeal decision affirming summary judgment dismissing plaintiff's action and thereby ending class action. ...more

Unique Circumstances in Litigating Franchise Class Actions

This paper was presented at the Canadian Institute's 12th Annual National Forum on Class Actions Litigation held in Toronto on September 21-22, 2011 and was written with David Sterns and Stuart Freen of Sotos LLP and Geoff...more

Recent Trends in Franchise Injunctions by Jennifer Dolman

This paper written by Jennifer Dolman of Osler Hoskin & Harcourt LLP was presented at the Canadian Franchise Association National Convention on April 5, 2011. It summarizes recent trends in franchise injunctions in Ontario...more

Osler Update: Supreme Court of Canada Allows Parties to Escape Arbitration Clause and Pursue Class Action

This Osler Update is a summary of the much anticipated Supreme Court of Canada decision in Seidel v. Telus Communications Inc. (Telus)which was released on March 18, 2011. At issue was whether a mandatory arbitration clause...more

Recent Trends in Franchise Injunctions

This article summarizes trends in franchise injunctions based on a review of recent Ontario cases. Article focuses on how standard three-part test for injunction is applied to injunctions brought by franchisors and...more

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