General Business Franchise

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Focused on Franchise Law - August 2014

FRANCHISOR 101: NLRB McDonald's Ruling May Put Crimp on Franchising - On July 29, 2014, the general counsel of the National Labor Relations Board (NLRB) stated that McDonald's could be held jointly liable with its...more

The GPMemorandum, Issue 183

In This Issue: - Fourth Circuit Upholds Summary Judgment For Manufacturer In Exclusive Dealing Case: Despite being one of two manufacturers that control 99% of the market, E.I. DuPont de Nemours and Co. has...more

The GPMemorandum, Issue 182

In This Issue: - Supreme Court Holds Company Can Sue Competitor For Unfair Competition Even If It Complies With FDA Labeling Regulations: In an 8-0 decision announced on June 12, 2014, the Supreme Court held...more

Mister Softee vs. Master Softee: Non-Compete & Trademark Ice Cream Fight in the SDNY

Dimitrios Tsirkos first became a Mister Softee franchisee in the mid 1980’s. To be clear, we are talking about the ice cream truck business. Over the years, Tsirkos entered several franchise agreements with Mister Softee and...more

Some Days, A Stay Is Easier to Obtain Than Others

In A&F Enterprises v. IHOP Franchising LLC, 742 F.3d 764 (Seventh Cir. 2014), Chapter 11 debtors appealed a determination that their building leases were deemed rejected because they were not timely assumed. Both the...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

Focused on Franchise Law - July 2014

FRANCHISOR 101: Location of Dispute Clauses Will Be Enforced - A recent U.S. Supreme Court decision is having a big impact on the locations where franchisor-franchisee disputes are being resolved. ...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

Franchise & Distribution News - June 2014

In This Issue: - NEW FRANCHISE LEGISLATION IN CANADA: British Columbia, which presently does not have a franchise specific statute, recently took one step closer to implementing such legislation when the British...more

‘To Franchise, or Not to Franchise?’

Franchising can be a highly successful approach to growing a business. But entrepreneurs should weigh success stories such as those of McDonald’s, which had $28.1 billion in revenues and $5.6 billion in net income in 2013, or...more

Focused on Franchise Law - June 2014

FRANCHISEE 101: Unsigned Franchise Agreement Binds Franchisee's Shareholder - Texas Appeals Court recently held in Pritchett v. Gold's Gym Franchising, LLC that a Texas forum-selection clause in a Franchise Agreement...more

Belgium: modified rules on pre-contractual information affect franchise agreements in Belgium – existing as well as future

Book X of the Belgian Economic Code concerning agency agreements, commercial collaboration agreements and distribution agreements is now in force. All franchisors will be affected, but those with existing franchise...more

Doing Business in Canada: Forms of Business Organization

The first issue facing foreigners setting up a business in Canada is the type of entity which should be used to operate the business. Among the most commonly used are: • Canadian corporations • Unlimited liability...more

Doing Business in Canada: Language Requirements

FEDERAL LAWS - English and French are the official languages of Canada. The Constitution of Canada and the Official Languages Act guarantee that English and French have equality status and equal rights and privileges...more

Rising up from the Trenches: Ninth Circuit Broadly Interprets Breach of Contract Exclusion in Trademark Infringement Case

On May 23, 2014, the Ninth Circuit upheld a California district court decision that broadly interpreted the breach of contract exclusion in a commercial general liability policy to preclude coverage for all personal and...more

The GPMemorandum, Issue 181

In this Issue: Missouri District Court Awards Attorneys' Fees And Costs In Termination Case: In Dunkin' Donuts Franchising LLC v. Sai Food (ST Hospitality, LLC, 2014 U.S. Dist. LEXIS 67512 (E.D. Mo. May 16,...more

Québec Court of Appeal Decision Results in Significant Victory for Franchisors

In a victory for franchisors, the Québec Court of Appeal confirmed the application of the doctrine of the indivisibility of contracts in a franchise context, supporting significant retroactive royalty awards for breaches of...more

An Export Plan Should Include the Consideration of U.S. Distribution Laws if Selling Into the United States Through Sales...

A Canadian or other foreign company looking to obtain a presence in the U.S. market without having to set up its own U.S. sales operation may consider using intermediariesn such as independent distributors and sales...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

Focused on Franchise Law - May 2014

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

Sbarro LLC Confirms Plan of Reorganization

On Monday, May 29, 2014, the United States Bankruptcy Court for the Southern District of New York approved Sbarro LLC’s plan of reorganization, paving the way for the pizza restaurant chain to exit bankruptcy. Sbarro filed...more

Are Franchise Agreements Negotiable?

In theory, yes, franchise agreements are negotiable. In practice, they may not be negotiable – particularly in ways that are meaningful. Every franchisor has a form of franchise agreement that defines the rights and...more

How Current Does the Information in my Disclosure Document Need to Be?

Many franchisors often ask how current or up-to-date their disclosure document needs to be. They also wonder which items of the disclosure document need to be updated more frequently than others. Franchise legislation in all...more

Not Every Fact Is a “Material Fact”

Canadian franchise laws require that all material facts relating to the franchise be included in a franchise disclosure document. After more than 10 years of judicial interpretation and application of franchise laws, many...more

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