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Franchise Updates

Read need-to-know updates, commentary, and analysis on Franchise issues written by leading professionals.

Negative Reviews: Franchises Pursuing Truth, Justice, & Defamation Claims

by Lewitt Hackman on

Franchised businesses, particularly restaurants, hotels, automotive servicers and others have been falling victim to the digital age. Many consumers now choose the places they do business based on what they read on Yelp,...more

Black Car Drivers in New York City Held Independent Contractors By Federal Court of Appeals

by Pepper Hamilton LLP on

While Uber has dominated the headlines when it comes to whether drivers on their on-demand, ride-sharing platforms are independent contractors or employees, similar battles are being waged elsewhere in the car service...more

Open access rail operators: change ahead?

by Dentons on

Open access still has a low market share - ORR has calculated that open access operators run just 1% of passenger rail miles in the United Kingdom, the rest being worked under passenger rail franchises. No open access...more

A "reasonable basis" for FPRs: what to expect this renewal season from state franchise examiners in light of the proposed NASAA...

by DLA Piper on

Last fall, the North American Securities Administrators Association Inc. (NASAA) issued a notice of request seeking public comment on an updated proposed financial performance representations (or FPR) Commentary. The Federal...more

Sheppard Mullin Secures Major Victory for Chipotle in Nationwide Misclassification Action By Demonstrating Variations Among...

The Court’s opinion in Scott v. Chipotle Mexican Grill demonstrates how employers can successfully combat class action claims that employees were misclassified as exempt. The successful defense of the class certification...more

N.Y.’s New Cybersecurity Regulations: What Financial Services Companies Need to Know

With corporate data security breaches on the rise, the New York State Department of Financial Services (NYDFS) has adopted rules requiring financial institutions to take certain measures to safeguard their data and inform...more

McDonald’s Corp. Dismissed from Suit Over Wage Violations at Franchises - Ostensible Agency Theory Rejected by Court

by Best Best & Krieger LLP on

A class action attempt to establish joint employer liability between franchisor McDonald’s Corporation and its franchisee for allegedly unpaid wages through an ostensible agency theory was brought to an end recently by a...more

FACTA Suits Still Bite - $31 Million Subway Class Action Settlement Approved

Ten years ago, hundreds of retailers, chain restaurants and others were targeted nationwide as defendants in class action suits under the Fair and Accurate Credit Transactions Act (FACTA) for violating the so-called...more

McDonald’s Canada’s Job Site Hacked

McDonald’s Canada has shut down its careers webpage following a breach that occurred in mid-March. A hacker gained access to the jobs section of its website and compromised the personal information, including names,...more

New York Court Delivers Denial Of Certification In Papa John’s Drivers’ Class Action

by Seyfarth Shaw LLP on

Seyfarth Synopsis: A New York federal court in Durling, et al. v. Papa John’s International, Inc., Case No. 7:16-CV-03592 (CS) (JCM) (S.D.N.Y. Mar. 29, 2017), recently denied Plaintiffs’ motion for conditional certification...more

Will Florida Cease to be the “Sunshine State” for Franchising? (Part 2/2)

by Fox Rothschild LLP on

Today, we continue our look at proposed changes to Florida’s franchise laws, including proposed changes in transferring franchised businesses, franchisor repurchase obligations and other miscellaneous changes...more

Will Florida Cease to be the “Sunshine State” For Franchising? 1/2

by Fox Rothschild LLP on

Two state legislators from Florida recently introduced a bill entitled “Protect Florida Small Business Act” (the “Act”), which could actually have the exact opposite effect on franchise relationships in Florida. While many...more

Food Fight: Two Sides to Every Chicken Filler Story

by Lewitt Hackman on

The Canadian Broadcasting Corporation (CBC) recently aired a segment reporting that real chicken content in Subway sandwiches amounted to a lot less than what the average consumer would expect. The network commissioned DNA...more

FRANCHISEE 101: Technical Disclosure Violations

by Lewitt Hackman on

The consequences to an unwitting franchisor can be severe when it fails to provide disclosure documents required by franchise law. Most franchise laws provide for rescission of the franchise agreement, allowing the franchisee...more

Actually, Hotel Franchise Agreements Are Negotiable

There is a widespread assumption that brand franchise agreements are not negotiable. This assumption is so prevalent that many real estate investors will devote substantial effort to negotiating the terms of a hotel purchase...more

FRANCHISOR 101: Ostensible Agency Victory

by Lewitt Hackman on

A California federal judge dealt a major blow to employees of a Bay Area McDonald's in their effort to hold the franchisor responsible for its franchisee's alleged failure to pay wages and provide meal and rest breaks. The...more

Federal Court Serves Up Satisfying Seconds For California Franchisors: No Ostensible Agency Liability For Franchisees’ Alleged...

by Seyfarth Shaw LLP on

Seyfarth Synopsis: A federal court in California recently held that a franchisor cannot be held liable for labor code claims where it did not exercise control directly, or through an actual agency relationship with the...more

The Fine Print - Spring 2017

The spring 2017 issue of The Fine Print features articles on supply chain management, hotel franchise agreements, President Trump's executive orders and more. Please see full newsletter below for more information....more

Monthly Update—Australian Labour & Employment - February 2017

by Jones Day on

MESSAGE FROM THE EDITOR - In this edition of the Update, we discuss two significant developments that are likely to have far-reaching impacts for employers and employees across Australia. First, we discuss the proposed...more

Good news for franchisors from the U.S. Department of Labor?

We write to alert our clients and contacts about some positive comments made by the acting Solicitor General pertinent to franchise entities. Specifically, as reported today in Law 360, acting Solicitor General Nicholas Geale...more

Franchise Industry Victory: McDonald's Defeats Joint Employment Claim Based on Ostensible Agency Theory

by Faegre Baker Daniels on

On March 10, 2017, a federal court in California granted summary judgment in favor of McDonald’s and dismissed joint employment claims that had been brought against it by employees of one of its franchisees. In Salazar v....more

Testing a New Franchise Concept

by LeClairRyan on

One of the toughest challenges an aspiring franchisor may face is selling its first franchise. Who would take the risk of buying a franchise from a franchise company that has no franchisees?...more

Court Finds That Arbitration Award That Interpreted Contract “Termination” To Include Contract “Expiration” Was Not A “Manifest...

by Carlton Fields on

Former franchisees filed a petition to vacate an arbitration award entered in favor of their former franchisor which enforced a 2-year non-compete provision in the parties’ franchise agreement when the agreement expired. The...more

Franchising and virtual reality and augmented reality – what legal issues you need to be considering now

by Dentons on

With predictions that Virtual Reality arcades may be a new trend, the time has come for franchisors to seriously consider the impact on franchising of the growth in Virtual Reality (VR) and Augmented Reality (AR). Although...more

Food and Beverage Law Update: March 2017

by Holland & Knight LLP on

Legalized Drug Use Impacts the Food and Beverage Industry - In the November 2016 general election, voters in Arkansas, Florida and North Dakota amended their state constitutions to authorize the use of marijuana for...more

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