Before committing to a franchise business, consider...
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
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
On June 11, 2015, Moscow District Arbitration Court handed down its ruling in the controversial Oriflame case. In the case, the tax authorities challenged the lawfulness of a Russian organization deducting VAT and expenses...more
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
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
A cable operator generally cannot transfer control of its business or transfer its cable franchise without the prior approval of the franchising authority. This gives the franchising authority the opportunity to resolve...more
Younes v. 7-Eleven, Inc., 2015 WL 126313 (D.N.J. Mar. 18, 2015).
In this franchise dispute, the plaintiffs sought the metadata from two spreadsheets and 38 documents, arguing they needed the requested metadata because...more
The National Labor Relations Board ("NLRB") recently published a memo finding that Canadian fast-casual restaurant franchisor Freshii is not a joint employer of its franchisee's employees. The ruling concerns unfair labor...more
In an opinion that caught close observers by surprise – particularly given the contemporaneous statements from the National Labor Relations Board’s General Counsel at a Senate hearing on May 14 – the NLRB’s Division of Advice...more
Any time an employer is involved in a franchise relationship, there are bound to be unique issues when legal disputes arise, particularly in the employment context. It is no longer surprising to see the names of any and all...more
In This Issue:
- The Next Hot Trend in Economic Development: Craft Beer
- Class Action Attempt to Void Jimmy John’s Non-Competes Goes Stale
- Use of Customer Survey Data Upheld in Hotel Franchise...more
In July 2001, sisters Michele and Lorraine Reymond approached the defendant, franchisor Legacy Academy, Inc., about the purchase of a daycare franchise to be located in suburban Atlanta. The sisters testified that Legacy...more
In most cases, courts and state legislatures have made it more difficult for franchisors to terminate franchise agreements. However, one federal court in New York recently upheld the use of negative guest satisfaction surveys...more
As the effective date of Argentina’s new Franchise Law approaches, businesses are beginning to comprehend its unexpected parameters.
For years, franchises operating in Argentina were governed only by contract...more
A federal court in New Jersey upheld a franchise agreement's forum selection clause in favor of hotel franchisor Ramada Worldwide Inc. and denied a Minnesota hotel franchisee's motion to dismiss the complaint, or...more
On 12 February 2015, the Verkhovna Rada of Ukraine adopted the Law of Ukraine "On Amending Certain Legislative Acts of Ukraine with Respect to Simplification of Conduct of Business (deregulation)" (the "Law"), which entered...more
Beer distribution laws differ from traditional franchise laws in many ways, but the two regimes do share some commonalities. As a matter of fact, many states now regulate the relationship between those who brew or import beer...more
All lawyers can benefit from having a toolbox of general legal knowledge with which to frame a case to their client's advantage.
For business attorneys the economic loss rule is a particularly useful tool. At its...more
In a putative class action alleging violation of Pennsylvania labor laws, unfair trade practices, and other state law claims brought by a franchisee against the franchisor and two subsidiaries, the court stayed the...more
In Fantastic Sam's Salons, Corp. v. Moassesfar, a federal court in Los Angeles denied a motion by former franchisees to dismiss Fantastic Sam's claims for breach of contract and trademark infringement based on the contractual...more
DLA Piper IPT partners Barry Heller, John Verhey and John Hughes recently conducted a webinar reviewing 2014’s top franchise decisions. Three significant 2014 matters are summarized below.
1. In Patterson v. Domino’s...more
Almost two years ago in American Express Co. v. Italian Colors, SCOTUS significantly narrowed, but did not overrule, the “effective vindication” doctrine, which allows plaintiffs to invalidate an arbitration agreement if it...more
A federal court in Sacramento recently upheld a franchisor's forum selection clause and transferred an action brought by an area representative to the federal district court in the Western District of Texas....more
In some cases, a franchise relationship ends after many years of business. At the point of termination, the parties must wrestle with a number of issues, including customers, inventory, and (as we reviewed in Part 1) the...more
Surcharge Collected for General Revenue Purposes Under a Franchise Agreement must be Approved by Voters -
A surcharge on electric utility bills collected by a power company pursuant to a franchise agreement and remitted...more
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