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Franchise Updates

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

Content from PK Law: 5 Questions with Ken Jacobs 9Round

by Pessin Katz Law, P.A. on

After receiving an employee severance package from Air Products in Sparrows Point, Ken Jacobs and his wife Julie considered numerous franchise concepts before settling on 9Round, a kickboxing gym that is rapidly expanding....more

Jan-Pro International Is Not The “Employer” Of Its Franchisees And Did Not Commit Wrongdoing, Court Finds

On May 24, a federal judge in California polished off a three-state win by master franchisor, Jan-Pro Franchising International, Inc., finding that under California law, unit franchisees (subfranchisees) who had franchise...more

Franchisors: New Accounting Rules Will Significantly Impact Revenue Recognition

by Lewitt Hackman on

An updated rule issued by the Financial Accounting Standards Board (FASB) will change when most franchisors may recognize revenue on their balance sheets from the collection of initial franchise fees....more

Off-Duty Employees Had Right to "Hang Out" on Employer's Property to Publicize Dispute

by FordHarrison on

An administrative law judge recently ruled that a Pacific Northwest fast food chain violated the National Labor Relations Act (NLRA) by maintaining a policy that prohibited off-duty employees from loitering or “hanging out”...more

FRANCHISEE 101: Contract Curveballs

by Lewitt Hackman on

In every Franchise Agreement, the franchisor and franchisee promise to fulfill obligations to the other. For some promises, whether or not they were performed can be a clear "yes" or "no." For example: either a franchisee...more

FRANCHISOR 101: State Taxes on Franchise Fees

by Lewitt Hackman on

Franchisors collect weekly or monthly "franchise fees." In many cases, fees are for particular services, such as marketing assistance or IT support. In franchising, the parties may be in any number of different states: for...more

Franchise Compliance: Franchising infringement notices and pizza

by Dentons on

A recent decision by the ACCC to issue infringement notices to a franchisor demonstrates the need for franchisors to comply with the ongoing disclosure requirements to franchisees under the Franchising Code of Conduct....more

When are Parent Company Financial Disclosures Required?

by LeClairRyan on

A franchisor selling franchises in the U.S. must disclose its audited financial statements in Item 21 of the franchise disclosure document (FDD). Sometimes, parent company financials are used instead of the franchisor’s...more

Accountant and Attorney Liability NewsBrief - Summer 2017

by LeClairRyan on

Compliance programs - policies and procedures designed to prevent violations of laws,c rules and regulations – have become a big deal. That’s because government regulators and enforcers closely scrutinize companies that...more

New Arizona Law Releases Chokehold on Franchise Employment Status Dilemma

by Dickinson Wright on

On March 21, 2017, Arizona Governor Doug Ducey signed into law House Bill 2322 which is Arizona’s response to the legal controversy plaguing many franchisors relative to imputed joint employment. The law holds that no...more

What State’s Law Applies To A Non-Compete Agreement And Why Does It Matter?

by Fox Rothschild LLP on

Employers frequently require employees to sign confidentiality and non-competition agreements. In most jurisdictions, these agreements are both lawful and prudent provided that they are carefully drafted. In my...more

Commonwealth Court Unanimously Holds that Local Business Privilege Tax Must be Fairly Apportioned

by Cozen O'Connor on

A panel of the Commonwealth Court unanimously held that a local Business Privilege Tax (BPT) imposed on fees paid by Pennsylvania 7-Eleven franchisees to 7-Eleven’s regional office in the township was unconstitutional because...more

Your Daily Dose of Financial News

by Robins Kaplan LLP on

Store-branded credit cards are still big business, but as the Times tells us, their contribution to companies’ bottom lines are masking bigger troubles at retailers around the US....more

Franchising Update

by K&L Gates LLP on

Many franchisors and other participants in the franchising sector are anticipating with concern the outcome of The Fair Work Amendment (Protecting Vulnerable Workers) Bill 2017 (Bill) which was introduced into the Federal...more

Dutch Franchise Code will become legally enforceable (Dutch)

by Dentons on

The Dutch Franchise Code (NFC) is given legal basis In the Netherlands, retail, catering and service offices are widely operated by means of a franchise. We know about 750 different franchise formulas, and more than 30,000...more

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

FRANCHISOR 101: Not Your Neighborhood Tesla Dealer

by Lewitt Hackman on

Among the many differences between Tesla and traditional automakers, Tesla does not sell or service its electric cars through franchised dealers; it sells direct to consumers. Recent legal challenges to Tesla's...more

Accidental Franchisor in Hot Water

by Fox Rothschild LLP on

Safe Step Walk In Tub Co. (“Safe Step”) failed to take the requisite “safe steps” before potentially becoming an accidental franchisor. In Safe Step Walk In Tub Co. v. CKH Industries, Inc., Safe Step filed an action against a...more

PowerPoint Slides: Does Your Company's Distribution Strategy Create Legal Risk?

by Pepper Hamilton LLP on

What does in-house counsel need to consider when reviewing pricing and marketing decisions in a dual-distribution system? The internet can extend the geographic reach of your product, but what issues must in-house counsel...more

Does Your Company's Distribution Strategy Create Legal Risk?

by Pepper Hamilton LLP on

What does in-house counsel need to consider when reviewing pricing and marketing decisions in a dual-distribution system? The internet can extend the geographic reach of your product, but what issues must in-house counsel...more

Debit Card Swipe Fees Only Hurdle to Dodd-Frank Repeal?

by Fox Rothschild LLP on

Respecting a issue of great importance to the franchise community, Bloomberg Law this morning is reporting that repealing a cap on debit card transaction fees is the only issue holding up an otherwise unified Republican bill...more

Negative Reviews: Seeing Stars or Trolls? Here's What You Can and Can't Do

by Lewitt Hackman on

Trolls aren’t just fictional creatures living under bridges in fairy tales – today they are anonymous but highly visible creatures plaguing individuals and businesses on social media. They’re angry, vindictive and financially...more

Negative Reviews: Franchises Pursuing Truth, Justice, & Defamation Claims

by Lewitt Hackman on

Franchised businesses, particularly restaurants, hotels, automotive servicers and others have been falling victim to the digital age. Many consumers now choose the places they do business based on what they read on Yelp,...more

Black Car Drivers in New York City Held Independent Contractors By Federal Court of Appeals

by Pepper Hamilton LLP on

While Uber has dominated the headlines when it comes to whether drivers on their on-demand, ride-sharing platforms are independent contractors or employees, similar battles are being waged elsewhere in the car service...more

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