Franchise Business Organization

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News & Analysis as of

The limits of negligent misstatement

The house always wins - except, it seems, at the Court of Appeal. The appellant bank did not owe a duty of care to Playboy Club's casino for a negligent misstatement as to a gambler's creditworthiness made to a sister...more

Getting Comfortable with Lender Comfort Letters

As the global real estate economy continues its recovery from the severe economic recession nearly a decade ago, hotel and hospitality real estate transactions have been robust as of late. According to the "Hotel investment...more

Recent Developments in Korean Franchise Law

Strict Enforcement of Annual Update Registration Deadlines - Since 2008 Korean franchise law has imposed registration and disclosure obligations on franchisors. In recent years this has seen a steady increase in the...more

Top tips for franchisors entering Australia

The franchising industry is projected to post annualised growth of 2.8 per cent over the next five years according to a recent report by IBIS World – one of the leading industry researchers operating in that market. The...more

Kuwait introduces new Agency Law: franchisors take note

The State of Kuwait recently enacted Law No. 13 of 2016 (the Agency Law) on the regulation of commercial agencies in Kuwait, explicitly overturning the former agency law. The Agency Law introduces material changes to the...more

Court Rules Dissolution of Cooperative Corporation Is A Process, Not A Flash

I don’t see that many cases involving California’s Cooperative Corporation Law and so I was interested in a recent ruling by Magistrate Judge Laurel Beeler in English & Sons, Inc. v. Straw Hat Rests., Inc., 2016 U.S. Dist....more

The Luxembourg Indirect Tax Administration Confirms That Director Fees Are Subject To VAT

The Luxembourg indirect tax administration is reported to have confirmed that director fees are subject to VAT. This is in line with the Luxembourg VAT law and the position of the European Commission on this matter....more

S.D.N.Y Dismisses Former Employee’s SOX and Dodd-Frank Whistleblower Claims

The U.S. District Court for the Southern District of New York recently granted a motion for summary judgment dismissing a plaintiff’s SOX and Dodd-Frank whistleblower claims. The court ruled that the plaintiff failed to...more

[Webinar] Franchise Disclosure Compliance: The Nuts & Bolts - United States - January 19, 3:00pm EST

Please join us for Franchise Disclosure Compliance: The Nuts & Bolts a webinar highlighting many of the “must do” or “must consider” matters for compliance with franchise disclosure legislation in U.S. ...more

[Webinar] Franchise Disclosure Compliance: The Nuts & Bolts - Canada - January 19, 1:00PM EST

Please join us for Franchise Disclosure Compliance: The Nuts & Bolts a webinar highlighting many of the “must do” or “must consider” matters for compliance with franchise disclosure legislation in Canada. ...more

State Regulation of Biz Ops

26 states in the U.S. have laws that govern the sale of business opportunities, or “biz ops”. California and some other states use the term “seller assisted marketing plan” instead of business opportunity, but the substance...more

Cybersecurity Preparedness & Response Alert: Effective Cybersecurity: The Evolving Regulatory Landscape for Investment Advisers,...

Cybersecurity has become a top concern for executives and boards across all sectors of commerce and critical infrastructure that rely on digital technologies—including financial services—and investment advisers, investment...more

What’s a Biz Op?

What’s a business opportunity or, as we often say, a “biz op”? The Federal Trade Commission (FTC) regulates biz op sales under its authority to regulate unfair or deceptive trade practices. The FTC’s definition of a business...more

FAST Forward - A Summary of the Securities Law Provisions of the FAST Act

On December 4, 2015, President Obama signed the Fixing America’s Surface Transportation Act (“FAST Act”), which includes a number of securities law related provisions that had previously been the subject of individual bills...more

Professor Coffee and Judge Rakoff Comment on Securities Class Actions

Since its inception, the concept of class action litigation – in a securities context or otherwise – has been met with arguments for and against it. To be sure, a class action suit is often the only way to properly...more

Business Litigation Reporter October 2015

Goodwin Procter’s Business Litigation Reporter provides timely summaries of key cases and other developments within dedicated Business Litigation sessions and related courts throughout the country – courts within which...more

The Employment Expansion Trifecta: The Wage and Hour Division, The National Labor Relations Board, and . . . OSHA?

Perhaps it is the end of racing season in Saratoga, but the federal employment agencies are certainly looking to hit the trifecta against independent contractors, franchisors, parent companies, and similar entities under the...more

The NLRB’s Browning-Ferris Decision Significantly Lowers the Standard For Who Is a Joint Employer Under the NLRA

In Browning-Ferris Industries of California, Inc., the National Labor Relations Board (“NLRB” or “Board”), in a 3-2 decision, expanded who may be considered a joint employer under the National Labor Relations Act (“NLRA” or...more

[Webinar] How Will Browning-Ferris Change the Test for Joint-Employer Status for Union and Non-Union Employers? - August 31st,...

The NLRB is expected to release its long-anticipated decision in Browning-Ferris Industries of California, Inc. shortly, possibly today. This decision will likely mark a radical departure from the currently accepted standard...more

Looking Forward by Looking Back: China’s Franchise Regulations After Eight Years

On July 1 and 2, we, representing the International Franchise Association, met with China’s franchise regulators in Beijing and Shanghai. The conversation would be familiar to anyone who has been closely following the...more

What’s an Exclusive Territory?

The extent of a franchisee’s territorial rights is the subject of Item 12 of the franchise disclosure document (FDD). One of the questions franchisors must address in Item 12 is whether the territory is exclusive....more

Obligation to Enforce Arbitration under FAA Policy Trumps Motion to Prevent Enforcement of “Clearly Void” Non-Competition...

On May 20, 2015, Judge Dudley H. Bowen of the United States District Court for the Southern District of Georgia, entered an order denying the Motion for Preliminary and Permanent Injunction filed by one of the plaintiffs...more

House Financial Services Committee Mark-Up of JOBS Act Bills

On May 20th, the Committee will be meeting beginning at 10am in an open session to mark up eleven bills that relate to various capital formation and JOBS Act measures. We have reported on a number of these bills in prior...more

Why Locate Your Business in New York?

New York is a great place to live and do business. The state is running an active marketing campaign to let the world know and to attract new business to the state....more

Proxy Access – Week of May 10 – The Trend is Clear

During the week of May 10, 2015, 8-Ks were filed that disclosed 11 shareholder sponsored proxy access proposals passed and one failed. All required three percent ownership for three years and all were opposed by the company...more

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