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Franchise Updates

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

Sale Of A Contract: Capital Gain Or Ordinary Income?

by Farrell Fritz, P.C. on

Maximize Capital Gain- In the sale of a business, it is the goal of every business owner and his tax adviser to minimize the amount of gain realized and, to the extent gain is realized, to maximize the amount that is...more

Surcharge on Utility Users Imposed Under a Franchise Agreement is Not a Tax - California Supreme Court Holds Surcharge for...

by Best Best & Krieger LLP on

In an opinion anxiously awaited by many cities, the California Supreme Court held that a 1 percent surcharge on electric utility bills paid by Southern California Edison to the City of Santa Barbara, which were used for...more

Disparagement Doesn’t Require Malice

by Sherman & Howard L.L.C. on

The NLRB recently has upheld some of the most outrageous employee conduct because it viewed the conduct to be part and parcel of “protected, concerted activity”. An egregious example of this trend was the NLRB’s finding that...more

FRANCHISEE 101: McDonald's Shaking Damages for OT Policy

by Lewitt Hackman on

In Los Angeles Superior Court, McDonald's claimed victory when 6,600 workers seeking $41 million in back pay and penalties came away with less than 2% of the amount sought in a claim that the fast-food giant cheated them out...more

The DOL Seeks to Change the Tide

While local state and city governments have been working to expand the scope of workplace protections, the Federal government has begun “undoing” some of the aggressive advancements of the Obama Administration....more

Under the Dome: Inside the Maine State House

by Pierce Atwood LLP on

State Budget Down to the Wire - At publication time on this last day of June 2017, the Maine Legislature had yet to enact a budget for the biennium that starts at midnight tonight. Last week, the Legislature was presented...more

Will Minimum Wage Hikes Kill Restaurant Jobs?

by Lewitt Hackman on

In 1981 “Video Killed the Radio Star” was the first music video MTV broadcast in the United States. The song was actually written a couple of years earlier, appeared on an album entitled The Age of Plastic by the Buggles, and...more

FRANCHISOR 101: Donut Franchise Relationship Dissected by Court

by Lewitt Hackman on

The parent of Dunkin' Donuts was named along with Starbucks and about 80 other coffee sellers, distributors and retailers in a 2010 lawsuit alleging violations of California's Proposition 65 and Safe Drinking Water and Toxic...more

District Court Protects Franchisor Against Anti-Contractual Competition in Frye

by Baker Donelson on

On Valentine's Day of 2017, the United States District Court for the District of Maryland gave franchisors the legal equivalent of two dozen roses when it decided Frye v. Wild Bird Centers of America, Inc., 2017 WL 605285 (D....more

2017 Oklahoma Tax and Fee Legislation

by GableGotwals on

The following are some of the changes in Oklahoma law on state taxation and fees enacted by the Oklahoma Legislature in 2017. Income Tax - Oklahoma Standard Deduction Decoupled from Federal Standard Deduction. For...more

Federal Court Rules Against Yum! Brands in Third-Party Franchise Sale Case – What Franchisors Need to Know

by Baker Donelson on

A federal court in Kentucky recently denied a franchisor's request to dismiss its franchisee's claim for intentional interference with prospective economic advantage. Based on this ruling, franchisors should proceed with...more

Financing Hotels in the United States: Key Considerations

by Shearman & Sterling LLP on

Hotels differ from other types of stabilized properties in several major ways. The purpose of this article is to highlight how the distinguishing factors impact the way that owners and lenders approach the negotiation of key...more

Franchise agreements under the South African Consumer Protection Act

by Dentons on

Prior to the enactment of the Consumer Protection Act 68 of 2008 (the CPA), there was no specific piece of legislation that regulated franchises. In this article, we provide a brief overview of some important aspects related...more

DOL: "Joint Employer" and "Independent Contractor" Guidance Out and Wage and Hour Opinion Letters In

by Akerman LLP - HR Defense on

On the heels of withdrawing published interpretations of the concepts of “joint employer” and “independent contractor,” the Secretary of Labor announced this week that it will reinstate the issuance of opinion letters....more

Proposed Changes to Ontario Employment and Labour Laws

by Dickinson Wright on

On May 23, 2017, the Government of Ontario’s Special Advisors released their Final Report from the Changing Workplaces Review (the Final Report) which outlines 173 recommendations to amend the Employment Standards Act...more

July Is the New January: Beware of Employment Regulations About to Take Effect

by Littler on

As we close out the first half of the year, July ushers in numerous changes in labor and employment law. Notably, many statutes and administrative regulations across the country become operative in July. Before the fireworks...more

FCPA COMPLIANCE REPORT-EPISODE 337, JAMES GELLERT ON ASSESSING 3RD PARTY FINANCIAL HEALTH FOR COMPLIANCE

by Thomas Fox on

In this episode, I visit with James Gellert, CEO of RapidRatings, a company which uses a financial dialogue to determine third party supplier health and viability. Gellert explains what supply chain resilience is and how...more

Disparaging, Degrading, Derogatory Trademarks: They're Now Enforceable Says Supreme Court

by Lewitt Hackman on

You may remember that several national sports franchises are under fire for trademarks and branding that is seen to be racially disparaging. The Washington Redskins are the first team to come to mind, and it wasn’t too long...more

Shifting Sands Continue to Undermine Traditional Definitions of Employment

On June 7, 2017, the Wage and Hour Division of the United States Department of Labor withdrew two Administrator’s Interpretations issued during the Obama administration that took a broad view of the employment relationship...more

Is Your Agreement To Arbitrate Valid?

by Fox Rothschild LLP on

Many franchisors employ arbitration as its preferred method of dispute resolution. Generally, courts view arbitration agreements favorably. An agreement to arbitrate waives the fundamental right to have a court decide the...more

Not A Minor Issue! FTC Updates COPPA Compliance Plan

by Fox Rothschild LLP on

This week, the Federal Trade Commission (FTC) updated its guidance for businesses on complying with the Children’s Online Privacy Protection Rule (COPPA) . If a website operator or operator of online services collects...more

Department of Labor withdraws joint employer guidance

by McAfee & Taft on

A joint employer relationship can arise in circumstances where an individual performs work for two entities that share control over how that individual performs his/her work. Although joint employment relationships are most...more

Appellate Court Notes

by Pullman & Comley, LLC on

Supreme Court Advance Release Opinions: - SC19799 - Middlebury v. Connecticut Siting Council Neighbors unsuccessfully challenged the modification of an approval for a new power plant before the Siting Council claiming...more

Old Grounds: A Lack of Prop 65 Warnings Brew Trouble for Coffee Franchisors

by Lewitt Hackman on

California Prop 65 warnings – many residents barely notice these anymore, as we’ve lived with Safe Drinking Water and Toxic Enforcement Act notices for over 30 years now. They appear at gas pumps; in apartment and office...more

Food & Beverage Litigation Update | June 2017 #3

FDA Delays Compliance Date for Nutrition Facts Labeling - The U.S. Food and Drug Administration (FDA) has announced that it will postpone the deadline for food companies to use a revised Nutrition Facts label on packaged...more

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