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Franchise Updates

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

New guidance for lawyers advising businesses on human rights risks

by DLA Piper on

On 17 July 2017, the International Bar Association Legal Policy and Research Unit (LPRU) released a Handbook for Lawyers on Business and Human Rights to provide guidance for business lawyers and their corporate clients on how...more

So You Say You Want a Revolution? Franchises Evolve as Retail Declines

by Lewitt Hackman on

You’ve seen the news: retailers are struggling. Traditional anchor stores like Macy’s and Sears are closing up shop, creating a domino effect of fiscal death for shopping malls across the country. The Los Angeles Times...more

Leadership Lesson from Andrew Jackson and Veto of the Second Bank Charter

by Thomas Fox on

In this episode, I consider the leadership lessons which can be drawn from our 7th President Andrew Jackson. I focus largely on the crisis surrounding the charter of the Second National Bank of the United States, which played...more

Tennessee Business Court Requires Arbitration of Franchise Agreement Disputes Notwithstanding Provision for Application of...

by Butler Snow LLP on

The Tennessee Business Court, in For Senior Help, LLC v. Medex Patient Transport, LLC, Case No. 16-0553-BC, decided January 5, 2017, stayed litigation and compelled arbitration of the disputes arising under the parties’...more

Franchising – The route to international expansion?

by Dentons on

Franchising is a proven route to the successful international expansion of businesses in various sectors from fitness studios and restaurants to high end fashion and beauty. Annually it accounts for turnover of USD$300...more

House Hearing Explores Legislative Remedy to Joint Employer Confusion

by Littler on

On July 12, 2017, the U.S. House Committee on Education and the Workforce held a hearing concerning the need for legislation to redefine the joint employer standard. As many employers are aware, the interpretation of when...more

Joint Amicus Brief Filed to Protect Franchise Business Model - BB&K’s Thomas O’Connell Counsel of Record

by Best Best & Krieger LLP on

Best Best & Krieger LLP attorneys Thomas O’Connell, as counsel of record, and Roger Crawford recently submitted an amicus curiae brief to the U.S. Supreme Court on behalf of the International Franchise Association, American...more

Trimming the Fat: Restaurant Menu Labeling Rule Under Further Review

by Lewitt Hackman on

In 2010 as part of the Patient Protection and Affordable Care Act a/k/a “Obamacare”, the federal government set provisions mandating restaurant chains provide nutrition information for menu items. The U.S. Food and Drug...more

Minority Shareholders’ Derivative Suit Foiled by Voiding of Corporation’s Charter for Nonpayment of Taxes

by Farrell Fritz, P.C. on

A business’s failure to pay state taxes can be a problem if the entity later wants to bring a lawsuit, or its non-controlling owners want to sue on the entity’s behalf....more

Sale Of A Contract: Capital Gain Or Ordinary Income?

by Farrell Fritz, P.C. on

Maximize Capital Gain- In the sale of a business, it is the goal of every business owner and his tax adviser to minimize the amount of gain realized and, to the extent gain is realized, to maximize the amount that is...more

Surcharge on Utility Users Imposed Under a Franchise Agreement is Not a Tax - California Supreme Court Holds Surcharge for...

by Best Best & Krieger LLP on

In an opinion anxiously awaited by many cities, the California Supreme Court held that a 1 percent surcharge on electric utility bills paid by Southern California Edison to the City of Santa Barbara, which were used for...more

Disparagement Doesn’t Require Malice

by Sherman & Howard L.L.C. on

The NLRB recently has upheld some of the most outrageous employee conduct because it viewed the conduct to be part and parcel of “protected, concerted activity”. An egregious example of this trend was the NLRB’s finding that...more

FRANCHISEE 101: McDonald's Shaking Damages for OT Policy

by Lewitt Hackman on

In Los Angeles Superior Court, McDonald's claimed victory when 6,600 workers seeking $41 million in back pay and penalties came away with less than 2% of the amount sought in a claim that the fast-food giant cheated them out...more

The DOL Seeks to Change the Tide

While local state and city governments have been working to expand the scope of workplace protections, the Federal government has begun “undoing” some of the aggressive advancements of the Obama Administration....more

Under the Dome: Inside the Maine State House

by Pierce Atwood LLP on

State Budget Down to the Wire - At publication time on this last day of June 2017, the Maine Legislature had yet to enact a budget for the biennium that starts at midnight tonight. Last week, the Legislature was presented...more

Will Minimum Wage Hikes Kill Restaurant Jobs?

by Lewitt Hackman on

In 1981 “Video Killed the Radio Star” was the first music video MTV broadcast in the United States. The song was actually written a couple of years earlier, appeared on an album entitled The Age of Plastic by the Buggles, and...more

FRANCHISOR 101: Donut Franchise Relationship Dissected by Court

by Lewitt Hackman on

The parent of Dunkin' Donuts was named along with Starbucks and about 80 other coffee sellers, distributors and retailers in a 2010 lawsuit alleging violations of California's Proposition 65 and Safe Drinking Water and Toxic...more

District Court Protects Franchisor Against Anti-Contractual Competition in Frye

by Baker Donelson on

On Valentine's Day of 2017, the United States District Court for the District of Maryland gave franchisors the legal equivalent of two dozen roses when it decided Frye v. Wild Bird Centers of America, Inc., 2017 WL 605285 (D....more

2017 Oklahoma Tax and Fee Legislation

by GableGotwals on

The following are some of the changes in Oklahoma law on state taxation and fees enacted by the Oklahoma Legislature in 2017. Income Tax - Oklahoma Standard Deduction Decoupled from Federal Standard Deduction. For...more

Federal Court Rules Against Yum! Brands in Third-Party Franchise Sale Case – What Franchisors Need to Know

by Baker Donelson on

A federal court in Kentucky recently denied a franchisor's request to dismiss its franchisee's claim for intentional interference with prospective economic advantage. Based on this ruling, franchisors should proceed with...more

Financing Hotels in the United States: Key Considerations

by Shearman & Sterling LLP on

Hotels differ from other types of stabilized properties in several major ways. The purpose of this article is to highlight how the distinguishing factors impact the way that owners and lenders approach the negotiation of key...more

Franchise agreements under the South African Consumer Protection Act

by Dentons on

Prior to the enactment of the Consumer Protection Act 68 of 2008 (the CPA), there was no specific piece of legislation that regulated franchises. In this article, we provide a brief overview of some important aspects related...more

DOL: "Joint Employer" and "Independent Contractor" Guidance Out and Wage and Hour Opinion Letters In

by Akerman LLP - HR Defense on

On the heels of withdrawing published interpretations of the concepts of “joint employer” and “independent contractor,” the Secretary of Labor announced this week that it will reinstate the issuance of opinion letters....more

Proposed Changes to Ontario Employment and Labour Laws

by Dickinson Wright on

On May 23, 2017, the Government of Ontario’s Special Advisors released their Final Report from the Changing Workplaces Review (the Final Report) which outlines 173 recommendations to amend the Employment Standards Act...more

July Is the New January: Beware of Employment Regulations About to Take Effect

by Littler on

As we close out the first half of the year, July ushers in numerous changes in labor and employment law. Notably, many statutes and administrative regulations across the country become operative in July. Before the fireworks...more

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