Franchise Agreements

News & Analysis as of

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

What Does Brexit Mean for Franchisors?

The coming negotiation over the specifics of the UK’s departure from the EU is an unfortunate necessity that follows from the UK’s unfortunate “leave” vote on June 23, 2016. It is too early to know what the relationship...more

Getting Comfortable with Lender Comfort Letters

As the global real estate economy continues its recovery from the severe economic recession nearly a decade ago, hotel and hospitality real estate transactions have been robust as of late. According to the "Hotel investment...more

Chorley Enterprises, Inc. v. Dickey’s Barbecue Restaurants, Inc.: Arbitration Provisions in Maryland Franchise Agreements

Maryland law requires franchisors include a provision in their franchise agreements that preserves the franchisee’s ability to litigate certain claims in court rather than in arbitration. In Chorley Enterprises, Inc. v....more

FRANCHISEE 101: What to Do About Franchisor’s Harmful New Policies

Franchisees aren't always excited when their franchisor introduces a new policy. But if a new policy overreaches and might doom a franchisee's business, can it be stopped before it starts?...more

Recent Developments in Korean Franchise Law

Strict Enforcement of Annual Update Registration Deadlines - Since 2008 Korean franchise law has imposed registration and disclosure obligations on franchisors. In recent years this has seen a steady increase in the...more

Top tips for franchisors entering Australia

The franchising industry is projected to post annualised growth of 2.8 per cent over the next five years according to a recent report by IBIS World – one of the leading industry researchers operating in that market. The...more

Loyalty Programs: All Fun and Games Until Someone Wants You to Buy Them a Harrier Jump Jet

In-house counsel should consider the myriad legal issues that can affect a consumer loyalty program, including numerous consumer, franchisee and regulatory issues....more

New Tool to Protect Franchisors’ Trade Secrets

On May 11, 2016, President Obama signed into law the Defending Trade Secrets Act of 2016 (the Act). The Act amends the Economic Espionage Act of 1996 (EEA) to create a federal private right of action for the misappropriation...more

Georgia’s Restrictive Covenants Act Turns Five Years Old: Assessing the Impact of Georgia’s Law Five Years On

While the federal Defend Trade Secrets Act is garnering a great deal of attention, it’s worthwhile to remember that state law remains critically important in drafting restrictive covenants.  This week, May 11, 2016, marks the...more

When a State Franchise Law Imposes an Obligation That Federal Law Preempts: What Dickey's Means for Franchisors

Have you ever been required by a state franchise regulator to include in your franchise agreement or disclosure document a provision that you believe he or she does not have the legal right to require? This issue often...more

Kuwait introduces new Agency Law: franchisors take note

The State of Kuwait recently enacted Law No. 13 of 2016 (the Agency Law) on the regulation of commercial agencies in Kuwait, explicitly overturning the former agency law. The Agency Law introduces material changes to the...more

Sign O’ The Times: SCOTUS Denies Cert In Franchise Arbitration Dispute

On Monday of this week, after stringing the parties along for five months, SCOTUS denied cert in a case involving the intersection between arbitration and franchise regulation. The petition was filed in November of 2015,...more

Ninth Circuit: Arbitration Provision Contained In Sham Agreement Is Not Enforceable

The Ninth Circuit reversed a district court ruling that had compelled arbitration, holding that a party may not enforce an arbitration agreement where the clause is contained in a nonbinding contract. The parties had entered...more

EU & Competition Law Update – April 2016

European Union: EU Commission maintains close scrutiny of retail geo-blocking - On the 18th of March 2016, the EU Commission published initial findings from its e-commerce sector inquiry. The initial findings show a...more

Franchisee Can’t Work Its Way Out of Trademark Infringement and Breach of Contract Litigation on Jurisdictional Grounds

An out-of-state franchisee sought to escape the reach of the Massachusetts District Court in a breach of contract and trademark infringement litigation filed by its Massachusetts-based franchisor. But, the parties quickly...more

Improving Franchise Laws

Will California’s recent overhaul of its franchise relationship law lead to a proliferation of state franchise relationship laws? I doubt it. As I’ve written elsewhere, my guess is that the California law represents a...more

FRANCHISEE 101: Purposes and Limits of Non-Compete Clauses

Many franchise agreements have "non-compete clauses", which state that after termination or expiration of the franchise agreement, the ex-franchisee may not operate a business that is similar to or that would compete with the...more

Arbitration Provision Rejected in Franchise Dispute

In Case Del Caffe Vergnano SPA v. ItalFlavors, LLC, the Ninth Circuit held that the court, not an arbitration tribunal, could review a franchise contract and determine it was a sham, based upon a second contract signed...more

Michigan Franchisors Not Joint Employers of Employees of Franchisees Absent Agreement

On March 22, 2016, Michigan joined Wisconsin, Texas, Louisiana, and Tennessee by amending its Franchise Investment Law to make it clear that unless otherwise specifically provided for in the franchise agreement, a franchisee...more

CMA encourages increased competition in Britain’s rail sector

On 8 March 2016, the Competition and Markets Authority (“CMA”) published a policy document recommending that the government overhaul the currently franchised rail system. 99% of Britain’s trains presently run under...more

Franchising Update

While dispute resolution clauses may be straightforward for domestic franchise agreements as a result of the Franchising Code, dispute resolution clauses can be one of the most neglected provisions in international master...more

Ninth Circuit Refuses To Enforce Arbitration Clause In Sham Franchise Agreement

A short new opinion from the Ninth Circuit may run counter to long-standing Supreme Court precedent. In Casa Del Caffe Vergnano v. Italflavors, 2016 WL 1016779 (9th Cir. Mar. 15, 2016), the court refused to enforce an...more

Ohio Court of Appeals Upholds a Successor Manufacturer’s Termination of a Distribution Franchise

The “successorship” provision of Ohio’s franchise law for alcohol beverages has spawned much litigation over the past two decades. Premium Beverage Supply, Ltd. v. TBK Production Works, Inc. represents the latest chapter of...more

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