Franchise General Business

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NLRB Expands Joint Employer Coverage

On Thursday, the National Labor Relations Board overturned 30 years of precedent, significantly expanding its definition of joint employer coverage under the NLRA. This decision has wide implications, including possible...more

NLRB Adopts New Joint Employer Test: Companies That Kind of, Sort of, Maybe Someday Could Exercise Control Over Employees Can Be...

The NLRB dropped a major bomb on businesses in subcontracting, franchising, and temporary staffing relationships yesterday, adopting a new—very, very broad—definition of joint employment. In Browning-Ferris Industries of...more

NLRB Starts Down The Slippery Slope With Controversial New Joint Employer Ruling

In a 3-2 decision, the National Labor Relations Board (NLRB) announced yesterday a broad new standard for determining whether two businesses are “joint employers” for purposes of collective bargaining. Browning-Ferris...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

Tastes Like Chicken, Not a Copyright

A common refrain: “There must be a way to protect this idea, either by trademark or copyright.” Regrettably, in many instances, the answer is “none of the above.” Take, for example, the humble chicken sandwich....more

Revisions to California Franchise Relations Act to Provide Greater Protections for Franchisees

The California Senate is putting the final touches on revisions to the California Franchise Relations Act. The law, when enacted, will increase franchisee protections against unilateral termination, provide more notice in the...more

FRANCHISEE 101: Franchisee Keeps Case in Home Court Despite Forum Selection Clause

Rob & Bud's Pizza ("R&B") is a Papa Murphy's franchisee and owns and operates multiple Papa Murphy's Take 'n' Bake Pizza restaurants in Arkansas, Missouri and Kansas. In April 2014, R&B and other Papa Murphy's franchisees...more

FRANCHISOR 101: Florida Franchisor Awarded Lost Future Profits

An arbitration panel in Florida found that a disaster recovery and remediation business franchisee breached his agreement with John Woods, his franchisor, by terminating the agreement 13 years before expiration of the 20-year...more

The Competition and Markets Authority's consultation on "Competition in passenger rail services in Great Britain" - On 17 July...

On 17 July 2015, the Competition and Markets Authority (CMA) published its consultation document regarding competition in passenger rail services in Great Britain. This followed its announcement in January that it intended to...more

Distribution Basics

The process of distribution is critically important to craft breweries; but, it is commonly misunderstood in relation to the overall operational success of a brewery. A common misconception by those entering the craft beer...more

FRANCHISEE 101: Hawaiian Distributor May Be a Franchisee

A long-standing distributor and licensee of Harley-Davidson motorcycles in Hawaii was entitled to proceed on its claim that the business relationship with Harley-Davidson Motor Company, Inc. was a "franchise" under Hawaii's...more

FRANCHISOR 101: Contractual Disclaimers Save the Day

A federal court in Florida has ruled that a disclaimer of representations contained in the franchise agreement between a childcare business franchisor and its franchisees barred claims against the franchisor for alleged...more

Franchise and Distribution News - July 2015

A VIEW FROM TWIN PEAKS - Quick. Define Twin Peaks. Other than the obviously now dated TV show, up until a couple of weeks ago, the only other definition of Twin Peaks was a restaurant chain that featured double entendre...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

Franchise Transfers

Most hotels operate under a Franchise Agreement. Franchise agreements, including those in the hospitality industry, are personal contracts for the benefit of the named franchisee only, and are further limited by the...more

Crossing the Line: Don't Let Business Clients Become Accidental Franchisors

Too often, expansion-minded business owners choose to offer trademarked products or services through purported licensing agreements or distribution or dealership arrangements only to discover, well into the game, that what...more

Eighth Circuit Upholds Arbitration Agreement In Absence Of Actual Proof Of Unconscionability Due To Cost

The Eighth Circuit affirmed a decision by the U.S. District Court for the Eastern District of Missouri which rejected the contention that an arbitration agreement was unconscionable, and unenforceable under the Federal...more

FRANCHISEE 101: Pay Now or Pay Later – Liquidated Damages & Future Royalties

Super 8 Worldwide, Inc. v. Anu, Inc. serves as a reminder to franchisees that, in general, courts will hold franchisees and their guarantors liable to their franchisors for losses suffered when franchisees abandon their...more

FRANCHISOR 101: Disclosure Violations & Running the Risks of Rescission

Despite a district court's recent decision in Braatz, LLC v. Red Mango FC, LLC, franchisors are well advised to comply with applicable disclosure requirements to a "T" to ensure new franchisees will not have an ongoing right...more

Spotlight on Tennessee: 2015 Tax and Related Legislation

The 2015 Legislative Session, 109th General Assembly, considered a large number of tax and related initiatives. Many of these initiatives have been enacted, some with very far reaching impact upon the tax climate in this...more

Asset-Light Strategy Issues in the Development Space

While asset-light strategies have been used for decades in the hotel industry, the strategy and how to implement it are a bit more complicated in the development space, whether for a hotel or time-share company. A typical...more

Tennessee Takes Shot at NLRB in New Law Limiting Franchisor Liability

Franchisors in Tennessee can breathe a small sigh of relief thanks to a newly enacted state statute that seeks to limit their potential liability and strike back at the general counsel of the National Labor Relations Board....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

DOJ Announces Plea Agreements with Five Major Banks for Manipulating Foreign Currency Exchange Markets

On May 20, the DOJ announced plea agreements with five major banks relating to manipulations of foreign currency exchange markets. Four of the banks pled guilty to felony charges of “conspiring to manipulate the price of U.S....more

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