Franchise Agreements

News & Analysis as of

Major Amendments To Franchising Code Foreshadowed: The Australian Government Has Today Released An Exposure Draft Of The...

Stakeholders are invited to comment on the draft bill and Regulations by 30 April 2014 with the changes expected to take effect from 1 January 2015. The highlights of the amended Regulations include: Increased...more

Franchisor Liability For Franchisee Employees: Damn Weasels

Weasel words, not epithets for employees with legal claims, are the problem. “…[C]ourts have been nearly uniform in holding that a franchisor should not be deemed to be an ‘employer’ … when plaintiff works for an...more

Top franchise cases of 2013

1. In Hanley v. Doctors Express Franchising, LLC, a former franchisee of the Doctors Express franchise system sued Doctors Express, the franchisor, and Rhino 7, a broker involved in the franchise sale, asserting that the...more

Focused on Franchise Law - March 2014

FRANCHISOR 101: Franchisee Not Bound by Arbitration Provision - In March 2013, Edison Subs, LLC, a Subway franchisee/transferee, filed a complaint in New Jersey against Subway and Aliya Patel (the original...more

Expanding Smart: Is Franchising Right For Your Restaurant Concept?

The franchise model can offer restaurateurs plenty of upside, which is precisely why franchise restaurants blanket the country. As growth vehicles go, however, franchising works better for some concepts than for others. Is...more

Ownership Of Competitive Franchise Systems: Risks And Rewards

Franchise systems have been, and continue to be, sought-after investment and acquisition targets. As a result of this, the demand for ownership of franchise systems often exceeds supply. In fact, there has been almost a...more

Hotel Franchise Agreements: 8 Things To Negotiate In Your Next Franchise Agreement

Most branded hotel properties are operated under franchise agreements which are long documents with lots of fine print. They are usually presented to owners as "non-negotiable." This brand position is justified on the basis...more

The Advisor, Winter 2014 - Franchise Law Series: Part One

A “Pet Valu” franchisee in Ontario claimed that sales were declining, so the owner tried to escape her franchise agreement. After termination of the agreement, her husband established a competing “Pet Stuff” business nearby....more

Hospitality And Leisure Franchising And Industry Innovation

Introduction - In previous years this publication has given an insight into the asset light strategies of global hotel operators, an overview of some of the trends in hotel franchising and provided a brief...more

Focused on Franchise Law - February 2014

FRANCHISOR 101: Franchisor Successfully Fends Off Fraud Claims - There are circumstances when a fraud claim will not succeed against a franchisor. In Dunkin' Donuts Franchised Restaurants, LLC v. Claudia I, LLC, a...more

Franchising Update - February 2014

To begin 2014, we remind franchisors of the Government's response to the changes to the Franchising Code recommended last year. On 6 January 2014, Small Business Minister Bruce Billson advised that the Coalition advocated...more

Appellate Court Notes - Week of February 10

AC35257 - Lagueux v. Leonardi: This decision has general applicability to the right of the State to ensure an applicant for a license is of good moral standing. The majority concluded that the Connecticut Insurance...more

Ten Contract Provisions That a Prospective Franchisee Should Consider Before Signing a Franchise Agreement

The saying that “love is blind” is as true in picking a franchise as in finding a soul-mate. Most prospective franchisees tend to shop franchise concepts instead of franchise agreements. They focus their search on hot...more

Thinking About Franchising Your Business?

As a successful business owner or business owner with a new and trendy concept, you probably get approached frequently by people hoping to acquire rights to operate your business “back home.” You are probably flattered by the...more

The GPMemorandum, Issue 176

In This Issue: - Missouri District Court Upholds Termination Of Franchise Based On Fraud: The United States District Court for the Eastern District of Missouri recently upheld a franchisor’s decision to...more

Brand Franchise Issues in Hotel Purchase and Sale Transactions

Key issues for buyers and sellers of branded hotels operating under franchise agreements. Buying or selling a hotel operating under a brand name requires special attention – the existing franchise agreement will be...more

Focused on Franchise Law - January 2014

FRANCHISOR 101: ITEM 19: MAKE A LIST AND CHECK IT TWICE - Hardware store franchisor, Ace Hardware Corporation, recently prevailed in several fraud claims brought by two former Indiana franchisees in Avon Hardware Co.,...more

Thinking about Buying a Franchise?

If you’re considering purchasing a franchise, you’re probably overwhelmed by the size of the Franchise Disclosure Document (or, as it’s colloquially called, the “FDD”) and firmly believe that the franchisor’s lawyer gets paid...more

Getting down to business: Coalition's review of the franchise sector means potential penalties for franchisors but may also...

Consistent with its pre-election campaign promise, the Coalition Government has announced that this year it will review and amend the Franchising Code of Conduct (Code) to improve protections for small business franchisees....more

Franchising 101: What is a Franchise? What do I have to do to Comply with the Franchise Laws? Why Should I Comply with the...

What is a Franchise? Due to the heavily-regulated nature of franchising, clients often tell their attorneys "I'm only going to do a license. I don't want to do a franchise." Although a client may believe what he...more

The GPMemorandum, Issue 174

In This Issue: - Court Approves Settlement In Class Action Lawsuit Filed Against Franchisor: A class action settlement has been approved in Swift v. DirectBuy, Inc., 2013 U.S. Dist. LEXIS 152618 (N.D. Ind. Oct....more

Focused on Franchise Law - December 2013

FRANCHISOR 101: LEARNING THE HARD WAY - Franchisors entering into settlement agreements with current or former franchisees must be certain that the agreements give the franchisors the right to make required FDD...more

Global Connection - November 2013

In today’s global marketplace, companies need to be informed about foreign laws and practices that impact, or may potentially impact, their businesses in the various regions they serve. This edition of Global Connection...more

What Happens When a Franchise Agreement Ends, Part 1: Restrictive Covenants

A “Pet Valu” franchisee in Ontario claimed that sales were declining, so she terminated the Franchise Agreement. After termination of the agreement, her husband established a competing “Pet Stuff” business nearby. When a...more

Focused on Franchise Law - November 2013

FRANCHISOR 101: FRANCHISE AGREEMENT LEAVES PRETZEL FRANCHISEE TWISTED - Post-termination non-compete covenants are not always enforceable by franchisors against terminated franchisees-it depends on the state and the...more

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