General Business Franchise

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FRANCHISEE 101: Illusory Arbitration Provisions Not Enforceable in Indiana

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

Preparing Disclosure Documents for Renewal

A franchisor wanting to grant a franchise in any of the regulated provinces must provide a franchise disclosure document to a prospective franchisee not less than 14 days before the earlier of the signing by the prospective...more

FRANCHISOR 101: Venue and Choice of Law Provisions Not Enforceable in California

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

Include a Choice of Venue Clause

As franchise systems expand into multiple jurisdictions, the choice of venue and choice of law clauses are critical to avoiding litigation delays. In a country like Canada, where the regulation of franchises varies between...more

Québec Franchisor Compensated for Breaches of Franchise Agreements

On April 25, 2014, the Québec Court of Appeal rendered its decision in Les billards Dooly’s inc. c. Les entreprises Prébour ltée, 2014 QCCA 842. The franchisor, Les billards Dooly’s inc. (Dooly’s) brought the underlying...more

Distinguishing License Agreements from Franchise Arrangements

MGDC Management Group v. Marilyn Monroe Estate, 2014 ONSC 4584 provides some guidance on the distinction between franchise agreements and license agreements. However, the ruling falls short of providing a clear framework for...more

DeliMark Decision Confirms Statement of Material Change Can be Used to Disclose Site-Specific Information

In 2337310 Ontario Inc. v. 2264145 Ontario Inc. (DeliMark), the Ontario Superior Court of Justice concluded that the head lease for the franchisee’s particular premises ought to have been disclosed prior to the franchise...more

A Cautionary Tale on Arbitration Clauses

In July 2014, the Ontario Superior Court of Justice released its decision in 2296432 Ontario Ltd v. FOF Franchise Corp. The case involved an action by plaintiff franchisees for rescission of a franchise agreement and related...more

Why Subfranchising is Rare in the U.S.

Subfranchising is one of three multi-unit franchise structures that the North American Securities Administrators Association, Inc. (NASAA) addressed in their Multi-Unit Commentary, which was the subject of an earlier post. ...more

For Convenience Store Chains in Georgia, Leasing Business Operations to Separate Entity Can Maximize Recovery in Condemnations

In Georgia, when a convenience store chain both owns and operates a location, it should lease business operations to a separate legal entity to maximize recovery in the event of a partial condemnation. In limited...more

Important Developments to Canada’s Food Safety System

The Safe Foods for Canadian Act (the Act), which received Royal Assent in November 2012, set the stage for important changes to Canada’s food safety system. The Act is expected to come into force at the beginning of 2015, and...more

Franchise Legislation October 2014: The Latest Word on Franchise Legislation in British Columbia

British Columbia continues along the path towards franchise legislation, albeit at a glacial pace. In late March, the British Columbia Law Institute (BCLI), a law reform research organization, published its Report on a...more

Businesses Anxiously Await NLRB Decision on Joint Employer Standard

Many are up in arms following a memorandum issued by the General Counsel of the National Labor Relations Board (NLRB) authorizing employees of a national restaurant chain to argue that the franchisor is jointly responsible...more

Is Franchising The Right Model For Your Business?

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

The Equal Credit Opportunity Act’s Safe Harbor for Assignees

In a previous post, we considered whether guarantors are considered to be “applicants” under the Equal Credit Opportunity Act (the “ECOA”), and today, we will consider whether assignees who acquire debt would be subject to...more

Governor Vetoes Proposed Changes to California Franchise Law

To the surprise of many, California Governor Jerry Brown has vetoed the proposed changes to California’s franchise laws that were discussed in our Client Alert on August 28, 2014. In his veto message, Governor Brown...more

6 Quick Lessons from Jimmy John’s POS Data Breach

According to public releases by Jimmy John’s (the sandwich shop franchisor) and Signature Systems (the point of sale (POS) system provider for 216 Jimmy John’s locations), malware was installed on those POS systems through...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

Five Tips To Launching A Franchise Program Successfully

CONGRATULATIONS! You’ve spent years building your business, developing a loyal following, and honing your operations into a replicable format. You own two, three or maybe ten different locations, all profitable, and...more

How will the 11th edition of the Uniform System affect your management agreement?

Hotel Lawyer: New Uniform System of Accounts will affect your hotel management and franchise agreements. Are you ready? Commencing January 1, 2015, the hotel industry will have a new, significantly revised set of...more

Joint Employers Under NLRB Law

A. Introduction - Over the last few weeks, there has been a great deal of discussion in the legal media regarding the National Labor Relations Board (NLRB or Board) General Counsel’s (GC) argument to the Board, that...more

FRANCHISEE 101: Forum Selection Clauses May Be Enforceable

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

Negotiating with a Tribe or Tribal Entity: Practical Tips for Franchisors

Indian gaming has exploded in the more than twenty-five years since Congress passed the Indian Gaming Regulatory Act (IGRA). According to the 2014 Casino City’s Indian Gaming Industry Report, Indian tribes received $28.1...more

Retailer - Fall 2014

Counting the Cost of Payroll Cards: Are they Worth it for Employers? Retailers, as well as other employers, have grown to rely on payroll cards to compensate employees who may not have bank accounts. What are the legal risks...more

Franchising agreements in Italy

We live in one of the world fashion capitals, waiting every year for the new Milan fashion week as an opportunity to cover in our blog some of the top current legal issues impacting the fashion sector....more

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