Fast-Food Industry

News & Analysis as of

The Federal Minimum Wage for Tipped Employees—Is a Raise in Store?

President Obama has made increasing the federal minimum wage a priority for the administration due in no small part to sustained union efforts over the past few years—including “worker center” protests and campaigns aimed at...more

FDA Finalizes Chain Restaurant Menu Labeling Rules

It may surprise some to learn that the Affordable Care Act of 2010, a.k.a. “ObamaCare,” among other things, amended the US Food, Drug and Cosmetic Act to require chain restaurants and similar retail food business to provide...more

What’s on the Menu? A Look at the New FDA Quick Serve Restaurant (QSR) Labeling Requirements

We recently reported in to our clients about a little-known element of the Affordable Care Act (“Obamacare”) that will require many QSRs (Quick Serve Restaurants) to provide specific calorie and nutrition information to their...more

The Next Wave of Joint Employment Litigation

A looming surge of cases threatens to expand the joint employment doctrine and fundamentally alter the operations of franchisors, retailers, and businesses utilizing independent contractors within the four walls of their...more

Mixing Things Up: Let’s Talk Recipes, Part One of a Four-Part Series (Copyright)

Discussions about protecting intellectual property often focus on cutting-edge technologies, corporate branding campaigns, and widely distributed artistic works like movies and music. But let’s mix things up a bit. Follow...more

Practice Spotlight: Corporate Inversions and Related Transactions

The past several months have seen a flurry of business activity by and between U.S.-based corporations and foreign competitors. Mergers have been announced between foreign and domestic pharmaceutical companies, drug retailers...more

FRANCHISEE 101: Complying with the FDA's New Menu Labeling Requirement

On November 25, 2014, the Food and Drug Administration (FDA) released final rules governing menu and vending machine labeling to implement some of the Affordable Care Act's nutrition labeling requirements. The final...more

FRANCHISOR 101: Accidental Franchises in Industries Not Typically Associated With Franchising

Almost everyone recognizes the nation's most prominent franchises: McDonald's, Domino's, Hilton or 7-Eleven, to name a few. And business people are becoming aware that arrangements that look like franchises, but are...more

On the Menu in 2015: Final Menu Labeling Regulations

After waiting more than three years, the Food and Drug Administration (FDA) published the long anticipated final Menu Labeling Regulations on December 1, 2014. These regulations bring the requirements imposed upon restaurants...more

Some Multi-Unit Franchisees are Public Companies

While most of the private equity and public offering activity of franchise companies focuses on franchise brands and systems, every now and then a large, multi-unit franchisee will go public or seek private equity financing....more

Fast Food Non-Compete Agreements?

Fast food is very secretive. Colonel Sanders Kentucky Fried Chicken has eleven secret herbs and spices. Bakers have attempted to reverse engineer Mrs. Fields Chocolate Chip Cookie recipe, but it remains a closely held...more

NLRB Complaints Claim McDonald’s USA is “Joint Employer” Liable for Labor Violations by Its Franchisees

The Office of the General Counsel of the National Labor Relations Board (NLRB) issued 13 complaints, on December 19, 2014, against McDonald’s franchisees and their franchisor, McDonald’s USA, LLC (McDonald’s USA), involving...more

A Franchise Chain's Non-compete Agreement Comes Under Congressional Scrutiny

Tremors were felt throughout the franchise community when a recent article in The Huffington Post reported that the Jimmy Johns sandwich franchise is under Congressional scrutiny for its franchisees’ practice of requiring...more

Chinese Takeaway for the New Year: Grace in Lieu of Shaming

As soon as the story emerged earlier this month about the Harvard Business School professor who berated a Boston-area Chinese restaurant over his takeout bill, I was champing at the bit to get on the DuetsBlog to pen my own...more

Backlash Against Jimmy John’s Non-Compete Agreement Highlights Risks of Overzealous Business Protection Measures

The submarine sandwich franchise Jimmy John’s has come under fire recently following the publication of a broad non-compete agreement that it has allegedly required rank-and-file employees to sign. The non-competition...more

Franchisors Beware: NLRB Seeking to Super-Size Joint Employer Liability

The National Labor Relations Board’s (“NLRB”) General Counsel’s Office has again signaled its commitment to expanding the scope of the current test for joint employment. In a move that could have implications for a broad...more

Franchisor IPOs Were Strong in 2014

While private equity activity continued in strength in 2014, franchisors also launched initial public offerings (IPOs) in the last year. Recent IPOs of franchise companies include the following: ?Habit Restaurants Inc....more

Hospitalitas Newsletter - Winter 2014

In This Issue: - Marriott Fined $600,000 For Wi-Fi Jamming - Franchisor Liability for Franchisee Employment Decisions: The NLRB’s General Counsel Addresses the Move to Expand the Joint-Employer Standard, and...more

Franchisor Liability for Franchisee Employment Decisions: The NLRB's General Counsel Addresses the Move to Expand the...

In July 2014, the National Labor Relations Board (NLRB) took the unexpected step of authorizing complaints against McDonald's USA, LLC and some of its franchisees for the franchisees' responses to employee protests. The Board...more

Restaurant Franchisors: Prepare to Comply With New FDA Menu Labeling Rules

The U.S. Food and Drug Administration (FDA) released its final rules for menu labeling on November 25, 2014. The long-awaited rules stem from provisions in the Affordable Care Act (ACA), the comprehensive health care reform...more

Carhops and Cash Deposit Bags: Insurer Skates From the “Dual Purpose” Doctrine

For many, Sonic Drive-In restaurants stir thoughts of juicy burgers, neon-blue sodas, ‘50s rock ‘n’ roll, and roller-skating carhops. Recently, however, in Hudson Specialty Insurance Company v. Brash Tygr, LLC, Nos....more

Health Care Update - December 2014

In This Issue: - FDA Releases Menu Labeling Rule - Implementation of the Affordable Care Act - Other Federal Regulatory Initiatives - Upcoming Congressional Hearings - Excerpt from FDA...more

FDA’s new menu labeling and vending machine requirements: 10 key answers for food businesses

The Food and Drug Administration has finalized its rules requiring that calorie information be listed on menus and menu boards of chains with at least 20 units operating under the same name and in connection with vending...more

FDA Issues New Menu-Labeling Rule

On November 25, 2014, the U.S. Food and Drug Administration (FDA) announced its long-awaited final rule requiring calorie information to be listed on menus and menu boards in chain restaurants and similar retail food...more

“Would You Like Joint-Employer Liability With That?” McDonald’s Serves as a Cautionary Tale for Franchisors and Other Potential...

The National Labor Relations Board Office of the General Counsel has investigated charges alleging McDonald’s franchisees and their franchisor, McDonald’s, USA, LLC, violated the rights of employees as a result of activities...more

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