Franchise Updates

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

Subway, DOL Partner to Improve FLSA Compliance

Last week, the Subway restaurant chain entered into a landmark partnership with the U.S. Department of Labor (DOL) aimed at improving Fair Labor Standards Act (FLSA) compliance among the chain's 27,000 franchisees. The DOL...more

Should Franchisors Become BFFs with WHD?

Expanding upon a relationship started in 2012, the U.S. Department of Labor’s Wage & Hour Division and Subway announced a voluntary compliance agreement earlier this week. Billed as an effort at increasing Subway’s social...more

Update For The Franchise Industry: Is Your Brand Manager Creating A “Joint Employment” Relationship With Your Franchisees’...

For several years now, franchisors have been the subject of attention in the labor and employment law arenas, and new rules and regulations are challenging franchise relationships in a number of ways. One increasingly...more

Dunkin’ Donuts Franchise to Pay $150,000 to Settle Sexual Harassment Lawsuit

Doughnut Franchise Manager Sexually Harassed Young Female Employees, Some in Their Teens, and Retaliated Against Worker Who Resisted Advances, Federal Agency Charged - NEW YORK - Hillcrest Marshall, Inc., which owns...more

FCPA Compliance and Ethics Report-271 Breaking Down Supply Chain Risk [Video]

In this episode I visit with Red Flag Group Product Development Specialist Jared Connors to discuss how to begin the process of breaking down your supply chain into manageable chunks so you can start to manage your supply...more

Federal court certifies class of franchisee’s employees to pursue ostensible agency claims against franchisor: three takeaways

In Ochoa, et al. v. McDonald’s Corp. et al.,[1] the United States District Court for the Northern District of California recently certified a class of more than 800 current and former employees of a McDonald’s franchisee in...more

FRANCHISOR 101: Outdated FDDs and Unregistered Franchises

The California Department of Business Oversight ("DBO") recently issued three Orders against franchisors for violating California's franchise laws....more

FLSA Compliance For Franchises…and the Joint Employer Tightrope

In May, the long awaited Department of Labor’s revisions to the FLSA’s white collar exemption rules were published and have many employers, including franchisors, concerned with compliance. John Skelton, a partner in our...more

Are you Ready for the Extension of the Unfair Contract Terms Regime to Franchise Agreements?

Since 2010, the Australian Consumer Law (ACL) and the ASIC Act have prohibited and made void terms in standard form contracts with consumers that were unfair. From 12 November 2016, the Unfair Contract Terms regime (UCT...more

Franchisor to Be Considered Statutory Employer? PA Supreme Court to Decide

The far-reaching implications of this decision could change the existing franchise business model. Is a franchisor a statutory employer of its franchisee’s employees? The Workers’ Compensation Appeals Board thinks so,...more

Government Involvement in Noncompetes… Against a Sandwich Maker?! Jimmy John’s Slapped With Another Lawsuit, This Time Brought by...

Jimmy John’s can’t seem to escape the limelight. Last year, the company made headlines when employees hit it with a putative class action lawsuit seeking to invalidate their non-compete agreements. The District Court...more

District Court: CFPB May Hold Law Firm Owners Individually Liable for Alleged Violations

The U.S. District Court for the Western District of Wisconsin ruled on July 20, 2016, that the Consumer Financial Protection Bureau (CFPB) may hold the owners of two law firms offering debt relief services liable for alleged...more

Res Judicata: California Mandamus Claims Are Not Fundamentally Distinct From Federal Counterparts Under California’s Primary...

The age-old doctrine of res judicata is as strong as ever in California. In Franceschi v. Franchise Tax Board, et al. (B267719, filed July 8, 2016) the California Court of Appeal Second District, held that Ernest Franceschi’s...more

Brexit: what might it mean for franchising? Top points

The effect of the Brexit vote is not, of course, just about the UK. It affects continental Europe and beyond. Post referendum, the UK is on course to leave the European Union and one of the effects of that will be the need...more

Franchising Update

Franchising is set to undergo change following the Australian Federal election. The Senate Standing Committee on Education and Employment recently recommended further amendments to the Franchising Code of Conduct to allow...more

How will franchising be affected by Brexit?

Following the Brexit vote, the international franchise community needs to consider the implications of the exit of a major European economy, the United Kingdom, from the EU. Europe is an important market for many UK and US...more

Seven Tips for Food & Beverage Transactions in the Middle East

Parties purchasing Middle East-based companies operating in the retail and wholesale food and beverage sector with a focus on companies in Saudi Arabia and the United Arab Emirates (“UAE”) are facing some common issues....more

Sixth Circuit Tri County Decision Provides Much-Needed Clarity on “Successor” Provision in Ohio Franchise Law

I attach a copy of the US Court of Appeals for the Sixth Circuit’s recent decision in Tri County Wholesale Distributors v. Labatt USA Operating Company, Nos. 15-3710/3769 (6th Cir., July 6, 2016). For students of the...more

Hospitality Industry Law Newsletter

Who Are My Employees? The legal landscape for employers is changing. Led by the National Labor Relations Board (the “NLRB”), there is a growing trend to hold employers accountable, not only for their own employees, but...more

Excess Policies at Issue Deemed Not to Attach Absent Actual Payment of the Amount of Underlying Limits by Either the Insured or...

Policyholders contemplating insurance coverage settlements with low-level insurers should use caution to preserve their ability to access higher-level excess policies. Excess insurers are increasingly disputing that...more

What Does Brexit Mean for Franchisors?

The coming negotiation over the specifics of the UK’s departure from the EU is an unfortunate necessity that follows from the UK’s unfortunate “leave” vote on June 23, 2016. It is too early to know what the relationship...more

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