General Business Franchise

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Kuwait introduces new Agency Law: franchisors take note

The State of Kuwait recently enacted Law No. 13 of 2016 (the Agency Law) on the regulation of commercial agencies in Kuwait, explicitly overturning the former agency law. The Agency Law introduces material changes to the...more

Sign O’ The Times: SCOTUS Denies Cert In Franchise Arbitration Dispute

On Monday of this week, after stringing the parties along for five months, SCOTUS denied cert in a case involving the intersection between arbitration and franchise regulation. The petition was filed in November of 2015,...more

Spotlight on Tennessee: Department of Revenue's Upcoming April 26 Rulemaking Hearing

On April 26, 2016, at 1:00 p.m. CST, a hearing will be conducted regarding proposed regulations filed by the Tennessee Department of Revenue (Department) with the Secretary of State on February 25, 2016. This rulemaking...more

Having The “Are You Operating an (Illegal) Franchise System Without Knowing It?” Conversation

Franchising laws are very broad in scope and may inadvertently encroach upon standard licensing or distribution agreements. The repercussions for operating an illegal (or more likely inadvertent) franchise system can be very...more

Franchise & Distribution News, Number 2

Ontario Passes New Legislation Governing Tips and Gratuities - Ontario restaurants, bars and other businesses with employees who receive some of their pay through tips and gratuities will face new laws governing how...more

Ninth Circuit: Arbitration Provision Contained In Sham Agreement Is Not Enforceable

The Ninth Circuit reversed a district court ruling that had compelled arbitration, holding that a party may not enforce an arbitration agreement where the clause is contained in a nonbinding contract. The parties had entered...more

FCPA Compliance and Ethics Report-Episode 245-Michael Bassett from Conference Executive Board Canada [Video]

In this episode I visit with Michael Bassett from Conference Executive Board Canada about the work by CEB to promote better risk management and governance with Board of Directors....more

Spotlight on Tennessee: Forced Franchise/Excise Tax Variance Upheld by Supreme Court

On March 23, 2016, the Tennessee Supreme Court issued its much-awaited decision in the case of Vodafone Americas Holdings, Inc. et al. vs. Tennessee Commissioner of Revenue....more

Franchisee Can’t Work Its Way Out of Trademark Infringement and Breach of Contract Litigation on Jurisdictional Grounds

An out-of-state franchisee sought to escape the reach of the Massachusetts District Court in a breach of contract and trademark infringement litigation filed by its Massachusetts-based franchisor. But, the parties quickly...more

Top franchise decisions: two standouts from 2015

Perhaps the most significant decision last year affecting franchising was not issued by a court and did not involve a franchise system. In an August 27, 2015 decision, the National Labor Relations Board (NLRB) in...more

FRANCHISEE 101: Purposes and Limits of Non-Compete Clauses

Many franchise agreements have "non-compete clauses", which state that after termination or expiration of the franchise agreement, the ex-franchisee may not operate a business that is similar to or that would compete with the...more

FRANCHISOR 101: Protecting Interests in Preliminary Injunctions

A franchisor in a termination dispute with a franchisee may request a preliminary injunction to force the franchisee to immediately stop operating the franchised business and using the franchisor's trademarks and intellectual...more

CMA encourages increased competition in Britain’s rail sector

On 8 March 2016, the Competition and Markets Authority (“CMA”) published a policy document recommending that the government overhaul the currently franchised rail system. 99% of Britain’s trains presently run under...more

Franchising Update

While dispute resolution clauses may be straightforward for domestic franchise agreements as a result of the Franchising Code, dispute resolution clauses can be one of the most neglected provisions in international master...more

Ninth Circuit Refuses To Enforce Arbitration Clause In Sham Franchise Agreement

A short new opinion from the Ninth Circuit may run counter to long-standing Supreme Court precedent. In Casa Del Caffe Vergnano v. Italflavors, 2016 WL 1016779 (9th Cir. Mar. 15, 2016), the court refused to enforce an...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

What Happens When a Franchise Agreement Ends - Part Three: Rescission

In our previous posts (See Part 1 and Part 2), we reviewed restrictive covenants and cancellation rights under franchise laws. In a recent decision of the Ontario Court of Appeal, the dispute focused on the right of...more

New DOL Joint Employment Standards Affect Auto Employers

Joint employer relationships are commonplace in the automotive industry. From auto makers that contract with other companies for parts to auto dealers that utilize franchise arrangements, the auto industry is reliant on joint...more

FRANCHISOR 101: The Importance of Arbitration Provisions

Though some of the more important terms may appear early in a franchise agreement, some key terms placed near the end - the portion of the agreement that is often called "boilerplate" - may determine who wins or loses a legal...more

FRANCHISEE 101: Relying on Franchisor’s Profit Projections

Most experienced franchisors know better than to make claims about profits franchisees can expect when those claims do not match the information in the franchisor's Franchise Disclosure Document. However, if a franchisor or...more

Can a Guarantor Waive his Right to a Foreclosure Confirmation Proceeding in Georgia?

Yes. On Monday, February 22, 2015, in a case closely watched by commercial real estate lenders, borrowers and guarantors, the Supreme Court of Georgia issued its opinion in PNC Bank, N.A. v. Smith, et al., S15Q1445. ...more

Franchisor Protected from Unfair Competition, Not All Competition

The fine line between protecting your system's legitimate interests and trying to eliminate a competitor can be hard to define in advance. With social media so important for consumer businesses, the line is even more...more

The Complex World of Joint Employment

Here’s Wikipedia’s definition of joint employment: Joint employment, or co-employment, is the sharing of control and supervision of an employee’s activity among two or more business entities....more

FranCast: Good news for franchisors: Ontario Court of Appeal dismisses Pet Valu class action

The recent Ontario Court of Appeal decision in 1250264 Ontario Inc. v Pet Valu Canada Inc.1 is good news for both Pet Valu Canada Inc. and Ontario franchisors....more

Joint Employment Challenges Continue in 2016

The legal concept of “joint employment” exists when a person is employed by two or more entities, such that the employers are responsible, individually and jointly, to the employee for compliance with a particular statute or...more

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