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Franchise Civil Procedure

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

FRANCHISEE 101: Special Delivery

by Lewitt Hackman on

For a relationship to meet the legal definition of a "franchise" in some jurisdictions, the franchisor must give significant assistance to, or have significant control over, the franchisee's business. A franchisor's...more

Tesla “Franchisee” Thwarted in Utah

by Fox Rothschild LLP on

Tesla, the electric vehicle automaker, recently lost a round in the Supreme Court of Utah. Tesla set up a wholly-owned subsidiary called “Tesla UT” that was to hold a license to sell Tesla’s cars to the public. The Utah...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

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

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

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

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

Superior Court of Québec Confirms Validity of Percentage Royalties Paid by Pharmacist-Owners to Franchisor

The Superior Court of Québec (Court), presided by Justice M. Monast, recently ruled on an important point of contention for franchise pharmacies, by confirming the validity of a percentage royalty clause contained in a...more

Ninth Circuit Affirms California District Court’s Confirmation Of Arbitration Award

by Carlton Fields on

In this matter, a California district court confirmed an arbitration award in favor of D.A.R.E. America, and denied a motion to vacate the arbitration award by D.A.R.E. New Jersey, Inc. D.A.R.E. New Jersey, Inc. appealed to...more

Must A False Statement To A Franchisee Be Made “In this state”?

by Allen Matkins on

The list of instruments and interests included within the definition of a “security” in California Corporations Code Section 25019 is long. A franchise, however, is not to be found amongst the named. In fact, the statute...more

Ostensible Agency, Hold the Class Certification: Would You Like Franchise With That?

by Seyfarth Shaw LLP on

It’s a common business model in the fast-food industry: a massive restaurant company provides the menu, the marketing—including catchy slogans and a universally recognized logo—and the basic operational standards for the...more

The Practical NLRB Advisor - Issue 4, Winter 2017

The National Labor Relations Board (NLRB) continued making life more difficult for employers in 2016. The agency issued a host of decisions that significantly expand the number and type of individuals that unions can seek to...more

Indiana Court of Appeals Allows Negligent Hiring Claim Despite Admission that Employee Acted Within Scope of Employment

by Reminger Co., LPA on

The Indiana Court of Appeals recently determined that a negligent hiring claim against Pizza Hut can continue to move through the trial court after finding that the trial court erred when it granted summary judgment in favor...more

FRANCHISOR 101: Are Franchisees Your Employees?

by Lewitt Hackman on

Prudent franchisors have been reducing their apparent control over franchisees' employees to reduce the risk of becoming joint employers of those employees. But could a franchisor's control over the franchisees themselves be...more

Don’t Read This: 2016 Workplace Law Year In Review

by Fisher Phillips on

Reverse psychology isn’t the only explanation for the title of this article (although, if you’ve made it this far, it seems to have worked). No, another explanation is that 2016 was a very rough year for employers when it...more

A Fresh Take on the Horizontal Joint Employment Theory: Conditional Certification for Subway Employees Denied

by Seyfarth Shaw LLP on

Seyfarth Synopsis: Federal court denies motion for conditional certification for a proposed class of employees working at separate Subway franchises. Earlier this year, the DOL’s Wage-Hour Division issued a...more

Court Grants Default Judgment Confirming Arbitration Award, With A Lesson On Jurisdiction

by Carlton Fields on

Choice Hotels filed an application to confirm an arbitration award of over $247,000 for the alleged breach of a franchise agreement by two defendants, which failed to timely commence construction of a hotel. The defendants...more

THANKSGIVING EDITION [FROM THE ARCHIVES]: Court Protects Quizno’s Franchise Turkey Trade Secrets

This Thanksgiving, Trade Secrets Watch is serving a delicious tale about protecting trade secrets in a franchising relationship. In 1994, Quizno’s entered into a franchise agreement with Robert Kampendahl, an...more

FRANCHISEE 101: Is It a Franchise? Yes and No

by Lewitt Hackman on

A federal court in Indiana made an interesting decision on whether a business relationship was a franchise. Wabash National Corp. is a famous maker of semitrailers. Wabash notified a dealer in Texas that its dealership was...more

Third Circuit affirms class certification in franchisee-as-employee class action

by DLA Piper on

In a recent sharply divided 2-1 decision, the Third Circuit Court of Appeals affirmed the grant of class certification against commercial cleaning franchisor Jani-King in a lawsuit alleging that Jani-King’s franchisees were...more

Five Critical Wage and Hour Issues Impacting Employers

by Epstein Becker & Green on

It is no secret that the wage and hour requirements found in the myriad of federal, state, and local laws and regulations present unique challenges to employers across the country. Those challenges are further complicated by...more

September 2016 Independent Contractor Misclassification and Compliance News Update

by Pepper Hamilton LLP on

The past month’s judicial and administrative activity in the area of IC misclassification reflects the wide range of industries facing these types of claims: communications; cleaning services; transportation and delivery...more

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

by Pepper Hamilton LLP on

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

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

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