Franchise Updates

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NLRB Claims McDonalds Is “Joint Employer” of Franchisee Employees

On December 19, the National Labor Relations Board (NLRB) issued 13 complaints naming McDonalds as a “joint employer” of the employees at its franchisees....more

Hospitalitas Newsletter - Winter 2014

In This Issue: - Marriott Fined $600,000 For Wi-Fi Jamming - Franchisor Liability for Franchisee Employment Decisions: The NLRB’s General Counsel Addresses the Move to Expand the Joint-Employer Standard, and...more

NLRB Office of General Counsel Alleges Franchisor Is Liable for Claims of Its Franchisees' Employees

On December 19, 2014, the National Labor Relations Board's (NLRB) Office of General Counsel took another step forward in its effort to erase the line between franchisors and franchisees. In a controversial move, the Office of...more

Franchisor Liability for Franchisee Employment Decisions: The NLRB's General Counsel Addresses the Move to Expand the...

In July 2014, the National Labor Relations Board (NLRB) took the unexpected step of authorizing complaints against McDonald's USA, LLC and some of its franchisees for the franchisees' responses to employee protests. The Board...more

Carving Out Small

States have been vested with the responsibility to regulate the manufacture, distribution, and sale of alcoholic beverages since the repeal of Prohibition. In carrying out this authority, many states have implemented a three...more

SBA Requests Comments on Franchise Loan Program

The U.S. Small Business Administration (SBA) is requesting comments from the public on all aspects of its franchise lending program. The SBA issued its notice and request for comment December 8, 2014....more

Restaurant Franchisors: Prepare to Comply With New FDA Menu Labeling Rules

The U.S. Food and Drug Administration (FDA) released its final rules for menu labeling on November 25, 2014. The long-awaited rules stem from provisions in the Affordable Care Act (ACA), the comprehensive health care reform...more

FRANCHISEE 101: Independent Contractors or Employees?

In Ruiz v. Affinity Logistics Corporation, another recent delivery driver case that arose in California, Affinity Logistics' drivers claimed they were employees and had been misclassified as independent contractors. The trial...more

FRANCHISOR 101: Statutes of Limitation Message for Franchisors and Franchisees

In Kroshnyi v. U.S. Pack Courier Services, Inc., a case pending for 13 years (and not over yet), numerous drivers claimed their package delivery franchisor violated New York's franchise law. From 1996 to 1998 the drivers...more

Weekly Update Newsletter - December 2014 #2

GOVERNMENT CONTRACTS - DoD Issues Final Rule to Amend DFARS Foreign Commercial Satellite Services (DFARS Case 2014-D010) - The Department of Defense (DoD) issued an interim rule adopted as final with minor...more

Recorded Documents: Who Loses When A Document Is Not Properly Indexed?

Agin v. Dookhan (In re Hultin), 516 B.R. 190 (Bankr. D. Mass. 2014) – A chapter 7 trustee sought to avoid a transfer of the debtor’s real property using his “strong arm” powers based on an argument that the deed...more

Private Equity Was Active in Franchising in 2014

In the last year, private equity continued to play an important role in franchising. Private equity offers a franchisor with a growing franchise system a promising pathway to rapid growth. An investment group can assist a...more

North Carolina Beer Distribution Agreements

In This Presentation: - The Choice: Brewery Self Distribution or Wholesaler Distribution - The Beer Franchise Law - Goals of Distribution Agreement - Checklist for Agreement - Excerpt from...more

Are You A Joint Employer? (Infographic)

Think supply chain. Think franchisor. Think private equity. For all these types of businesses, the rules of the game are changing. For a host of reasons – among them cost, efficiency, liability and risk...more

“Would You Like Joint-Employer Liability With That?” McDonald’s Serves as a Cautionary Tale for Franchisors and Other Potential...

The National Labor Relations Board Office of the General Counsel has investigated charges alleging McDonald’s franchisees and their franchisor, McDonald’s, USA, LLC, violated the rights of employees as a result of activities...more

Franchise arrangements pose legal problem for NLRB’s proposed joint-employer standard

The National Labor Relations Board’s general counsel, who is recommending that the Board dramatically alter the joint-employer doctrine, admitted that his proposal may run into “a problem legally” when it comes to...more

Game changer – the proposed Joint Employer standard

The US National Labor Relations Board, Department of Labor and Equal Employment Opportunity Commission have launched a coordinated prosecutorial assault on businesses that use outsourcing, franchising or sub-contracting. The...more

FRANCHISEE 101: Avoid Acts & Omissions That Expose Your Franchisor to Potential Liability

A West Virginia Court refused to dismiss an action brought under its state workers' compensation law. That law permits an employee to recover greater damages when deliberate intent exists. An employee of a Hardee's...more

FRANCHISOR 101: Avoid Liability for Acts and Incidents at Franchisees' Locations

There has been a lot of news lately about risks of franchisors being liable for acts and incidents at franchised locations. The National Labor Relations Board's general counsel recently announced he intends to claim...more

Court Denies Motion to Remand, Rejecting Application of Home State and Local Controversy Exceptions to CAFA

The plaintiff filed a putative class action in Pennsylvania state court against two Pennsylvania defendants and one Virginia defendant, claiming that the defendants preyed on non-English speakers, illegally coercing them to...more

Comparing Franchise Relationships and Beer Distribution Relationships

Beer distribution laws differ from traditional franchise laws in many ways, but they do share some commonalities. As a matter of fact, many states now regulate the relationship between those who brew or import beer into a...more

Microsoft’s New Battle: Toads

It isn’t often that Forbes and Arcade Sushi are reporting on the same story. But some news is so big, so ground breaking, and so important that all media outlets cannot, in good moral consciousness, fail to comply with their...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

Second Circuit: Oral Agreement to Pay Commissions Not Barred by Statute of Frauds

A recent opinion from the Second Circuit Court of Appeals reaffirms that the Statute of Frauds will not void an oral agreement to pay commissions if the agreement lacks a fixed duration. In Kroshnyi v. U.S. Pack...more

Direct Benefits Estoppel: 7th Cir. Explains How You Can Be Compelled To Arbitrate Without Agreeing To Do So

Everyone knows that you can’t be compelled to arbitrate a dispute unless you’ve agreed to do so. But what everyone knows is sometimes wrong. There are situations in which a person has to arbitrate even though she didn’t sign...more

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