Franchise Agreements

News & Analysis as of

New Law Requires Franchisors to Revise Agreement Forms Used in Australia

Australia recently enacted legislation that will extend an existing regime restricting “unfair contract terms” in consumer contracts to standard form small business contracts, which will include most franchise agreements and...more

California Toughens Its Franchise Relationship Law

California franchisees will soon have additional statutory protections against a franchisor’s termination or non-renewal of the franchise without good cause, and new protections against the franchisor’s refusal to approve the...more

Franchisors Operating in California Face New Challenges: The New California Franchise Relations Act

On January 1, 2016, the California Franchise Relations Act (“CFRA”) will be amended resulting in the expansion of franchisee rights when it comes to termination, renewal, and transfer of franchise agreements. The key terms of...more

Franchises Act soon to become law in British Columbia: key provisions for franchisors

British Columbia’s legislature has completed the third reading of Bill 38-2015, the BC Franchises Act. Its quick movement – the bill was introduced to the legislature on October 5 - is the culmination of work that began...more

FRANCHISEE 101: "Two Wrongs Don't Make a Right"

At one time or another, many people have occasion to be renters who feel mistreated by a landlord. This may be due to delays in repairs, responses, or just turning on the heat. A typical reaction is the temptation to...more

The New California Franchise Relations Act: A Game Changer for Franchisors Operating in California

California will notch another franchise regulatory distinction come January 1, 2016: home to the toughest franchisee-protection law in the nation. On October 11, 2015, Governor Jerry Brown signed a bill amending the...more

Federal Labor Officials Step Into the Lion’s Den

Two top federal labor officials engaged in a spirited dialog with two franchise lawyer moderators at the American Bar Association’s annual Forum on Franchising in New Orleans on October 16.  The topic: whether the National...more

Business Litigation Reporter October 2015

Goodwin Procter’s Business Litigation Reporter provides timely summaries of key cases and other developments within dedicated Business Litigation sessions and related courts throughout the country – courts within which...more

Sixth Circuit Holds Pizza Hut Franchisee Waived Arbitration Right

The world’s largest Pizza Hut franchisee, NPC International, Inc. (“NPC”), which operates more than 1200 Pizza Hut restaurants in the United States, was sued in federal district court by employees in five separate collective...more

Religious Institutions: October 2015

Timely Topics - A non-compete clause, covenant not to compete or restrictive covenant is a contract provision under which one party agrees not to enter into or start a similar profession, trade or business in competition...more

FRANCHISEE 101: Bankruptcy Discharges Franchise Law Claims

A recent Bankruptcy Appellate Panel decision is a reminder of both a benefit of bankruptcy, in appropriate circumstances, and the need to respect the bankruptcy discharge a party obtains in the process. Mr. Lee was...more

Following the Sixth Circuit’s Lead, Ohio Appellate Courts Find Whether an Agreement Allows Class Arbitration Is a “Gateway Issue”

As we stated previously, the potential impact of whether entitlement to class arbitration is a “gateway issue” will likely diminish with each passing year. (See our March 12, 2015, blog article on the denial of certiorari in...more

Impact of NLRB’s Joint Employer Decision in Connecticut Still To Be Determined

As you’ve no doubt read, the National Labor Relations Board, refined its test for determining whether two ostensibly separate entities can be viewed as joint-employers. In its Browning-Ferris Industries of California, Inc....more

Arkansas Loves Home Cookin'

A federal judge in the Western District of Arkansas recently rejected a franchisor's attempt to invoke a forum selection clause, in Rob & Bud's Pizza, LLC v. Papa Murphy's Int'l, Inc,, on public policy grounds rooted in a...more

Ten Considerations when Terminating a Distributorship Relationship

It is always a difficult decision to terminate a distribution relationship, especially if it was long-standing and previously profitable. When making a termination decision, a manufacturer/supplier must be careful to ensure...more

California Dreams Becoming Reality for Franchisees; Amended Franchise Relationship Law Nears Passage

The California State Assembly saw the seventh amended version of proposed changes to the California Franchise Relationship Act (CFRA) introduced August 17, 2015. This amendment is the product of industry negotiations that...more

NLRB Expands Joint Employment

In today’s economy, businesses of all types rely upon agencies to engage temporary employees, subcontractors and independent contractors. Until last week, these businesses and their agencies were not considered joint...more

IFA Seeks OSHA Explanation of Applying a New Joint Employer Standard

The International Franchise Association (IFA) has filed a Freedom of Information Act (FOIA) request with the Occupational Safety & Health Administration (OSHA) asking for the rationale behind questions that its inspectors are...more

Labor Board’s joint employer decision sure to cause headaches

Currently, only seven percent of Americans employed by private employers are union members, so it’s no surprise that unions are struggling and desperate to grow membership. The National Labor Relations Board, which...more

OSHA Implications Under the NLRB’s New Expansive Definition of Joint Employer

Safety at workLast week on our Employer Labor Relations Blog we wrote about a recent ruling of the National Labor Relations Board in the Browning-Ferris Industries (BFI) case that vastly expanded the definition of joint...more

Just in Time for Labor Day – Employees You Didn’t Know Were Yours

The National Labor Relations Board (“NLRB”) on August 27, 2015, issued a sweeping decision that overturned decades of precedent and created a new standard for determining when two (or more) entities are “joint employers” for...more

NLRB’s New “Joint Employer” Standard: Seismic Impact for California Employers?

Last week, the National Labor Relations Board issued its much-anticipated decision in Browning-Ferris Industries of California, 362 NLRB No. 186 (August 27, 2015). By a 3-2 vote, the Board announced a new standard to...more

The NLRB Expands the Definition of “Joint Employer”

Last week, the National Labor Relations Board (the “NLRB” or “Board”) issued a decision greatly expanding the standard for determining whether a company may be deemed a “joint employer.” The Board’s decision, in...more

Is There a Lesson from Dunkin’ Donuts for Franchisors Outside Quebec?

The Quebec Court of Appeal has recently upheld the 2012 decision of the Superior Court awarding substantial damages – CA$10.9 million – to former franchisees of Dunkin’ Donuts.1 Application for leave to appeal was filed with...more

Revisions to California Franchise Relations Act to Provide Greater Protections for Franchisees

The California Senate is putting the final touches on revisions to the California Franchise Relations Act. The law, when enacted, will increase franchisee protections against unilateral termination, provide more notice in the...more

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