Franchise Updates

Read need-to-know updates, commentary, and analysis on Franchise issues written by leading professionals.
News & Analysis as of

Hotels – Brand Expansion or Brand Explosion?

Consumer oriented companies commonly use “brand extension” to launch a new product by using an existing brand name on a new or related product, often in a different category. These companies use brand extension to leverage...more

Lessons Unlearned: Franchise and Independent Contractor Agreements Can Be Kiss of Death

The Third Circuit’s decision is a pointed reminder to franchisors, as well as businesses that use independent contractors, that the form of their agreements can either serve their legal interests or harm them in employee...more

Impact of new French labor law on franchise network

After much toing and froing, the new French labor law (sometimes also referred to as " The El Khomri Law " was finally passed by Parliament on the 8th of August 2016 . Among the articles of this Law, one of the goals of...more

Assignments and restrictive covenants in Ontario: franchisors take note

Franchisors concerned about how they may wish to handle an assignment of a franchise can look to two 2015 decisions of the Ontario Court of Appeal for guidance. In the first decision, 2147191 Ontario Inc. v. Springdale Pizza...more

Après maintes péripéties, la nouvelle loi travail française (parfois aussi dénommée “Loi El Khomri”) a finalement été promulguée...

Après maintes péripéties, la nouvelle loi travail française (parfois aussi dénommée “Loi El Khomri”) a finalement été promulguée par le parlement le 8 aout 2016. Parmi les 123 articles de cette loi, dont l’un des buts...more

Special Edition: President of International Franchise Association (IFA) Visits Lewitt Hackman

For more than 55 years, the International Franchise Association has been committed to improving methods and business practices for all participants in franchising - whether working with the Federal Trade Commission, lobbying...more

FINRA to Conduct Targeted Exams of Unit Investment Trust Rollovers

FINRA recently announced that it will be conducting an inquiry into unit investment trust (“UIT”) rollovers. UITs generally are unmanaged registered investment companies that are comprised of a fixed portfolio of securities...more

EEOC Supports NLRB’s Joint-Employer Standard before DC Circ.

On September 14, 2016 the Equal Employment Opportunity Commission (“EEOC”) filed an amicus brief in the D.C. Circuit expressing support for the National Labor Relations Board’s (“NLRB”) loosened standard of a joint employer....more

Privacy & Cybersecurity Update: New York State Proposes Cybersecurity Regulation for Financial Institutions

New York state has proposed a new regulation — to go into effect January 1, 2017 — that would require banks, insurance companies and other financial services institutions regulated by the New York State Department of...more

FCPA Compliance and Ethics Report-Episode 276-Regulator Evolution [Video]

In this episode Red Flag Group CEO Scott Lane and I discuss how regulators thinking on best practices compliance programs has evolved. ...more

The NLRB, Franchisees, And Temporary Employees

The retail industry, due to the seasonal nature of its business, has often bolstered its workforces with temporary employees through employment agencies. This arrangement works as an efficient way for employers to manage the...more

Franchisee d/b/a Franchisor’s Trademark: The Fictitious Name Registration

The fictitious name, also known as the d/b/a, doing business as, trade name or assumed name. Every franchisee uses one and, in almost all cases, it’s the franchisor’s trademark. And while it may be considered “fictitious,”...more

Motel 6 Sued By EEOC for Pregnancy Discrimination

New Orleans Motel Placed Employee on Unwanted Leave of Absence, Federal Agency Charges - NEW ORLEANS - G6 Hospitality, dba Motel 6, unlawfully placed a pregnant employee on leave solely because of the fact that she was...more

FRANCHISEE 101: How Far Do Earnings Projections Go?

A franchisor is allowed to make "financial performance representations" in its disclosure documents. These figures may project how much money a franchisee is likely to make and can play a critical part in the franchisor's...more

Franchising: Is it For You?

As a business owner, you are constantly looking to expand your operations. One option is franchising. It sure works for Dairy Queen and UPS, so why not for you? Like all business models, however, franchising has its cons....more

FRANCHISOR 101: Non-Competes for Franchisees’ Employees

A "non-compete" provision limits the franchisee's ability, after the franchise agreement ends, to continue to work in a similar type of business to the franchise within a certain time period and geographic area. The purpose...more

Suspending Franchise Sales

In several states that require franchise registration, it is a good idea to suspend franchise sales while an amendment or renewal application is pending with the state.  Franchisors commonly suspend franchise sales pending...more

What To Make Of The Wage And Hour Division's Voluntary Compliance Agreement With The Subway Franchise System

On July 26, the U.S. Department of Labor’s Wage and Hour Division entered into a “Voluntary Agreement” with the franchisor of the Subway brand, known as Doctor’s Associates, Inc., and its affiliates. The agreement...more

Ten Hallmarks of an Effective Compliance Program-Hallmark 7 [Video]

In this podcast, I discuss the most vexing problem of a best practices compliance program, managing third party risk. ...more

Franchise Relationships, Personal Information and Trade Secret Liability

Corporate entities that share confidential personal information with each other, including those in franchise relationships, should strongly consider potential privacy and trade secret risks and consider available alternative...more

Ten Hallmarks of an Effective Compliance Program-Hallmark 4, risk assessments [Video]

In this 10-episode podcast series I take a look at the hallmarks of an effective compliance program. In this episode I review Hallmark 4-risk assessments....more

NY Attorney General Schneiderman Declares “War” on Non-Compete Agreements That He Perceives as Overbroad

In an initiative that is virtually without precedent in New York, in the past two months (June 15, June 22 and August 4) Attorney General Schneiderman announced agreements with three separate companies in three different...more

Subway Adopts Novel Approach to Stem Wage and Hour Claims

Subway is one of the largest franchisors in the world, with over 26,000 restaurants in the United States alone. It is also in one of the industries most prone to wage and hour claims, a fact reflected in both Department of...more

Brexit's Impact on ISDA Documentation

As previously noted in the client alert “Brexit: A First Look at the Impact on Asset Managers That Trade Derivatives,” Brexit is not anticipated to have an immediate impact on ISDA Documentation or derivatives contracts. ...more

Employment Law This Week®: Salary History, Wage and Hour Compliance Training, Non-Competes, Misclassified Workers [Video]

We invite you to view Employment Law This Week® - a weekly rundown of the latest news in the field, brought to you by Epstein Becker Green. We look at the latest trends, important court decisions, and new developments that...more

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