Fast-Food Industry

News & Analysis as of

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

Final Menu Labeling Rules Released by FDA

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

FRANCHISEE 101: Avoid Acts & Omissions That Expose Your Franchisor to Potential Liability

A West Virginia Court refused to dismiss an action brought under its state workers' compensation law. That law permits an employee to recover greater damages when deliberate intent exists. An employee of a Hardee's...more

EEOC Roundup: October 2014

Employment is heavily regulated in the U.S., where it is illegal to discriminate against a job applicant or an employee because of the person's race, color, religion, sex (including pregnancy), national origin, age (40 or...more

When Things Do Not Go As Planned In A Bankruptcy Sale

Buying distressed assets is big business. Many distressed assets are acquired through the seller’s Chapter 11 bankruptcy case. In those instances, a buyer will enter into a purchase and sale agreement with the...more

Photoshopping: One Lingerie Company is Bucking the Trend while Making a Buck

It is no secret that advertisements, especially for clothing, accessories, and even cheeseburgers. About a year ago, Brent (Lorentz, of the fellow Duets Blogger fame) discussed the prevalence of unrealistic expectations in...more

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...more

6 Quick Lessons from Jimmy John’s POS Data Breach

According to public releases by Jimmy John’s (the sandwich shop franchisor) and Signature Systems (the point of sale (POS) system provider for 216 Jimmy John’s locations), malware was installed on those POS systems through...more

(Subway) Eat Flesh, An Effective Parody?

This past weekend one of my sons said, “Dad, I have a good blog topic for you.” After he explained, it was clear, yes, son you do! So, he sent me the photo to the left. It is one that he recently snapped at a place that sells...more

Popeye's Chicken Franchisee to Pay $25,000 to Settle EEOC Disability Discirmination Lawsuit

Longview Fast Food Restaurant Refused to Hire HIV-Positive Applicant Despite His Qualifications, Federal Agency Charged - TYLER, Texas - Famous Chicken of Shreveport, L.L.C. a Popeye's Chicken franchisee, has agreed to...more

Domino’s Pizza is Not Vicariously Liable for Acts of a Franchise Employee Where Domino’s Lacks Control Over Employee, Says...

Domino’s Pizza This week, the California Supreme Court held that Domino’s Pizza was not liable for the torts of an employee of a franchise because Domino’s had no contractual or operational control over the employee. The...more

Who's in Control Here? California's Supreme Court Establishes New Standards for Potential Franchisor Liability for Employee Tort...

On August 28, 2014, the Supreme Court of California, in Patterson v. Domino's Pizza, LLC, decided whether a franchisor was entitled to summary judgment on the plaintiff's claims that the franchisor was vicariously liable for...more

California Supreme Court: Holding Franchisor Liable as Employer Depends on Level of Control Over Day-to-Day Employment Decisions

Patterson v. Domino’s Pizza, LLC, No. S204543 (August 28, 2014): On August 28, 2014, the California Supreme Court issued a decision holding that a franchisor that did not exhibit the characteristics of an “employer” was not...more

Flash No. 41: How The NLRB and 2 All-Beef Patties Resonate with Trucking

The National Labor Relations Board (“NLRB”) General Counsel’s July 31 announcement that he will name McDonald’s U.S.A. LLC as a joint employer in dozens of unfair labor practice cases filed on behalf of employees of...more

Focused on Franchise Law - August 2014

FRANCHISOR 101: NLRB McDonald's Ruling May Put Crimp on Franchising - On July 29, 2014, the general counsel of the National Labor Relations Board (NLRB) stated that McDonald's could be held jointly liable with its...more

Food, Folks, and Franchise-Wide Liability: NLRB Signals Intent to Pound Square Joint Employer Peg Into Round Franchise Hole

A big part of what makes the franchise model of business attractive to small business owners is the opportunity to own and operate their own business, but with their entrepreneurial risk backstopped by a known regional or...more

NLRB Will Charge McDonald’s as “Joint Employer” For Franchisee Labor Violations

In a move with far-reaching ramifications for all businesses that license their brands to independent contractors including franchisees, the National Labor Relations Board (“NLRB”) announced on July 29, 2014 that it has...more

Franchisors Not Lovin’ It: NLRB Announces McDonald’s Named Joint Employer with Franchisees

On July 29, 2014, the National Labor Relations Board (NLRB) Office of the General Counsel announced that McDonald’s, USA, LLC will be named as a “joint employer” in at least 43 cases alleging unfair labor practices against...more

Understanding Triple Net Leases

There is a thriving niche in commercial real estate for what are commonly called “triple net leased properties.” These transactions most commonly involve fast food restaurants, convenience stores or some other franchise-type...more

Weekly Law Resume - February 2014: Insurance Coverage – “Mobile Equipment” Exception to Auto Exclusion

American States Insurance Company v. Travelers Property Casualty Company of America - Court of Appeal, Second Appellate District (January 27, 2014)- Most commercial general liability policies exclude liability for...more

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