Franchise Agreements

News & Analysis as of

Health-chising: Starting-up a Health Care Franchise

In recent years, health care franchises have grown at a rapid pace. Yet, it is worth noting that franchising is not a new concept to the health care industry. Health care franchise systems have been around for decades and...more

Court Grants Default Judgment Confirming Arbitration Award, With A Lesson On Jurisdiction

Choice Hotels filed an application to confirm an arbitration award of over $247,000 for the alleged breach of a franchise agreement by two defendants, which failed to timely commence construction of a hotel. The defendants...more

Your Own Agreements Can Be Your Worst Enemy in IC Misclassification Cases

Companies that use independent contractors (ICs) typically require ICs to sign a contractor agreement prepared by the company. But, if it is drafted like the one reviewed in late September by the U.S. Court of Appeals for the...more

Franchising Update

Franchising has undergone several significant changes in the last quarter. Firstly, the introduction of the Unfair Terms Legislation will no doubt impact the documentation used by franchisors. Secondly, franchisors operating...more

THANKSGIVING EDITION [FROM THE ARCHIVES]: Court Protects Quizno’s Franchise Turkey Trade Secrets

This Thanksgiving, Trade Secrets Watch is serving a delicious tale about protecting trade secrets in a franchising relationship. In 1994, Quizno’s entered into a franchise agreement with Robert Kampendahl, an...more

Top Takeaways: 2016 American Bar Association Forum on Franchising

Marc Lieberstein - Marc Lieberstein, Kilpatrick Townsend partner in the firm’s New York office, was honored to participate in the “Mine is Better Than Yours! The Risks and Rewards of Conducting Comparative Advertising”...more

Joint / Related / Common Employers: Are You at Risk

In recent years, a number of cases have emerged in both Canada and the United States discussing new implications for companies deemed to be joint and related employers. Cases both from the United States and across Canada will...more

FRANCHISEE 101: Is It a Franchise? Yes and No

A federal court in Indiana made an interesting decision on whether a business relationship was a franchise. Wabash National Corp. is a famous maker of semitrailers. Wabash notified a dealer in Texas that its dealership was...more

Correcting an Accidental Franchisor Violation

What’s a franchise? Franchise registration and disclosure laws define a “franchise” more broadly than people generally realize. A company may be franchising without knowing it. The “license” agreement may have been...more

Hotel News Update: Amicable Resolution Reached in High-Profile Litigation Over Management Agreement

Marriott International, Inc. ("Marriott") and Eden Roc, LLLP ("Eden Roc"), the owner of the Eden Roc Hotel in Miami Beach, Florida, have jointly announced an amicable resolution of their ongoing litigation concerning the...more

Third Circuit affirms class certification in franchisee-as-employee class action

In a recent sharply divided 2-1 decision, the Third Circuit Court of Appeals affirmed the grant of class certification against commercial cleaning franchisor Jani-King in a lawsuit alleging that Jani-King’s franchisees were...more

September 2016 Independent Contractor Misclassification and Compliance News Update

The past month’s judicial and administrative activity in the area of IC misclassification reflects the wide range of industries facing these types of claims: communications; cleaning services; transportation and delivery...more

Franchise Opportunities: One Size Does Not Fit All

Purchasing a franchise opportunity has become a popular means of pursuing a new business venture. The idea of joining an established group and utilizing a recognized brand can offer an added level of comfort when going into...more

Hotels – Brand Expansion or Brand Explosion?

Consumer oriented companies commonly use “brand extension” to launch a new product by using an existing brand name on a new or related product, often in a different category. These companies use brand extension to leverage...more

Lessons Unlearned: Franchise and Independent Contractor Agreements Can Be Kiss of Death

The Third Circuit’s decision is a pointed reminder to franchisors, as well as businesses that use independent contractors, that the form of their agreements can either serve their legal interests or harm them in employee...more

Impact of new French labor law on franchise network

After much toing and froing, the new French labor law (sometimes also referred to as " The El Khomri Law " was finally passed by Parliament on the 8th of August 2016 . Among the articles of this Law, one of the goals of...more

Après maintes péripéties, la nouvelle loi travail française (parfois aussi dénommée “Loi El Khomri”) a finalement été promulguée...

Après maintes péripéties, la nouvelle loi travail française (parfois aussi dénommée “Loi El Khomri”) a finalement été promulguée par le parlement le 8 aout 2016. Parmi les 123 articles de cette loi, dont l’un des buts...more

Franchisee d/b/a Franchisor’s Trademark: The Fictitious Name Registration

The fictitious name, also known as the d/b/a, doing business as, trade name or assumed name. Every franchisee uses one and, in almost all cases, it’s the franchisor’s trademark. And while it may be considered “fictitious,”...more

FRANCHISOR 101: Non-Competes for Franchisees’ Employees

A "non-compete" provision limits the franchisee's ability, after the franchise agreement ends, to continue to work in a similar type of business to the franchise within a certain time period and geographic area. The purpose...more

Federal Court: Virginia Municipalities Must Treat Telecommunications Providers The Same As All Other Utilities In The Public Right...

On Monday Aug. 8, 2016, the U.S. District Court for the Eastern District of Virginia issued an opinion in Crown Castle v. City of Newport News, holding that Crown Castle proved at trial that the City of Newport News violated...more

Coming to a Hotel Near You: The Starwood-Marriott Merger

It seems fitting that Marriott’s upcoming acquisition of Starwood Hotels & Resorts (creating one of the largest hotel companies in the world) is anticipated to occur during the prime summer vacation season. The combined...more

FRANCHISOR 101: Outdated FDDs and Unregistered Franchises

The California Department of Business Oversight ("DBO") recently issued three Orders against franchisors for violating California's franchise laws....more

Are you Ready for the Extension of the Unfair Contract Terms Regime to Franchise Agreements?

Since 2010, the Australian Consumer Law (ACL) and the ASIC Act have prohibited and made void terms in standard form contracts with consumers that were unfair. From 12 November 2016, the Unfair Contract Terms regime (UCT...more

Franchising Update

Franchising is set to undergo change following the Australian Federal election. The Senate Standing Committee on Education and Employment recently recommended further amendments to the Franchising Code of Conduct to allow...more

Seven Tips for Food & Beverage Transactions in the Middle East

Parties purchasing Middle East-based companies operating in the retail and wholesale food and beverage sector with a focus on companies in Saudi Arabia and the United Arab Emirates (“UAE”) are facing some common issues....more

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