News & Analysis as of

Franchise Agreements

Franchising Update

by K&L Gates LLP on

Many franchisors and other participants in the franchising sector are anticipating with concern the outcome of The Fair Work Amendment (Protecting Vulnerable Workers) Bill 2017 (Bill) which was introduced into the Federal...more

Will Florida Cease to be the “Sunshine State” for Franchising? (Part 2/2)

by Fox Rothschild LLP on

Today, we continue our look at proposed changes to Florida’s franchise laws, including proposed changes in transferring franchised businesses, franchisor repurchase obligations and other miscellaneous changes...more

Will Florida Cease to be the “Sunshine State” For Franchising? 1/2

by Fox Rothschild LLP on

Two state legislators from Florida recently introduced a bill entitled “Protect Florida Small Business Act” (the “Act”), which could actually have the exact opposite effect on franchise relationships in Florida. While many...more

FRANCHISEE 101: Technical Disclosure Violations

by Lewitt Hackman on

The consequences to an unwitting franchisor can be severe when it fails to provide disclosure documents required by franchise law. Most franchise laws provide for rescission of the franchise agreement, allowing the franchisee...more

Actually, Hotel Franchise Agreements Are Negotiable

There is a widespread assumption that brand franchise agreements are not negotiable. This assumption is so prevalent that many real estate investors will devote substantial effort to negotiating the terms of a hotel purchase...more

Court Finds That Arbitration Award That Interpreted Contract “Termination” To Include Contract “Expiration” Was Not A “Manifest...

by Carlton Fields on

Former franchisees filed a petition to vacate an arbitration award entered in favor of their former franchisor which enforced a 2-year non-compete provision in the parties’ franchise agreement when the agreement expired. The...more

Food and Beverage Law Update: March 2017

by Holland & Knight LLP on

Legalized Drug Use Impacts the Food and Beverage Industry - In the November 2016 general election, voters in Arkansas, Florida and North Dakota amended their state constitutions to authorize the use of marijuana for...more

Franchise and Distribution News - March 2017

by Dickinson Wright on

Is your dispute, subject to arbitration under your Franchise Agreement, going to be litigated in court? As we all know, using arbitration clauses in commercial agreements is pretty commonplace—particularly in the...more

FRANCHISEE 101: A Perpetual Franchise

by Lewitt Hackman on

When a franchisee "buys into" a franchise system by paying an "initial franchise fee," the franchisee is typically purchasing the right to use the franchisor's trademarks and business system for an initial term that lasts a...more

FRANCHISOR 101: Simplification of SBA Loan Approvals

by Lewitt Hackman on

As independent small business operators, franchisees may qualify for business loans that are guaranteed by the Small Business Administration ("SBA loans"). However, the SBA considers certain types and levels of control...more

Getting to know British Columbia’s new franchise legislation

by DLA Piper on

After years in development, the British Columbia Franchises Act and its regulations came into force on February 1, 2017. British Columbia is now one of six Canadian provinces to enact franchise legislation, following...more

THE LATEST: Employee “No-Poaching” Agreements Remain in the Antitrust Crosshairs

by McDermott Will & Emery on

There have been a series of investigations, class action suits and high value settlements involving agreements not to solicit employees. In addition, the Department of Justice (DOJ) Antitrust Division made a splash a few...more

BC Franchise Laws Come Into Effect

by Dickinson Wright on

On February 1, 2017, the British Columbia Franchises Act and Regulations came into effect making British Columbia the sixth province in Canada with franchise legislation. The introduction of franchise legislation in British...more

Franchising of Restaurants in the Gulf Cooperation Council

by King & Spalding on

A number of food and beverage groups (particularly restaurant groups) access the Gulf Cooperation Council (GCC) markets through franchising arrangements. With a young and fast-growing population (many of whom spent time...more

Attention to Detail is Critical for Franchise Startups

Starting a new franchised business can be an exhilarating experience, combining the thrill of engaging in a new business with the confidence that comes from having the backing of a successful brand. New franchisees, however,...more

The Franchise Disclosure Document – A Brief Primer

The scenario: You operate a prosperous business and believe that the concept can be successful in other markets. But given financial constraints or otherwise, you determine that franchising the business will likely result in...more

Franchise Issues in Commercial Leases

Commercial landlords and tenants are already faced with many issues during the course of negotiating a commercial lease agreement. When the tenant is a franchisee, the franchisor’s requirements (as outlined in the franchise...more

Be Aware of Possible Joint Employer Status with Franchisor

The franchise model is built upon the idea that a franchisee pays for the right to use a franchisor’s brand, marketing and goodwill in launching and operating the franchisee’s business. The franchisee is generally responsible...more

First Steps Toward a Successful Franchise Acquisition

Owning a franchised business can present a lucrative opportunity, and this is especially true when acquiring a franchise with a history of success and/or an opportunity for growth. While each franchise system is different and...more

SBA Changes the Game

by Baker Donelson on

On November 22, 2016, the Small Business Administration released SOP 50 10 5(I) (the "SOP"), which is administrative speak for new standard operating procedures affecting loans to businesses involved in franchising. The...more

SBA's New Rule Offers Some Welcome Changes for the Franchise Community

The Small Business Administration (SBA) has been a key player in franchise development, providing loan guarantees for franchisee start-ups. As a condition for providing these guarantees, the SBA historically required a...more

Drafting Franchise Agreements After Patterson v. Domino’s : Avoiding the Minefield of Vicarious Liability and Joint Employment

by Snell & Wilmer on

Lauded as one of the most important franchise cases in the recent past, Patterson v. Domino’s established a new standard for addressing vicarious liability issues in California. In reaching its decision that Domino’s was not...more

FRANCHISEE 101: Locked In to One Approved Vendor

by Lewitt Hackman on

Franchisors often require franchisees to purchase supplies, materials, or inventory only from suppliers the franchisor approved. But where franchisors see benefits of consolidating by requiring franchisees to participate in...more

The New SBA Addendum

by LeClairRyan on

Effective January 1, 2017, any franchisor that wants to offer SBA guaranteed financing for its franchisees will use a single, two-page form addendum. In a notice issued just before Thanksgiving, the SBA announced that it...more

Brazil’s top court strikes down validity of arbitration clause in franchise agreement

by DLA Piper on

In a recent and potentially far-reaching decision, the Superior Tribunal of Justice – the highest court of Brazil for non-constitutional matters with responsibility for harmonizing interpretation of federal laws by the state...more

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