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Franchise Agreements Federal Trade Commission (FTC)

Akerman LLP

Leisure Law Insider (Vol. 3) - Summer 2024

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Welcome to the third edition of The Leisure Law Insider! Released quarterly, we cover the latest news and developments in leisure and hospitality law, regulation, and policy. Expect content on hotels, franchising, labor and...more

Davis Wright Tremaine LLP

Warns Franchisors Against Unfair Practices and Spotlights Risks in Franchising

The FTC administers the federal franchise sales law, which requires all franchisors engaged in franchise sales in the United States to deliver a franchise disclosure document (FDD) to their prospective franchise buyers unless...more

Foley & Lardner LLP

Federal Trade Commission Issues Policy Statement on Franchisors’ Use of Non-Disparagement, Goodwill, and Confidentiality Clauses...

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On July 12, 2024, the Federal Trade Commission (FTC) issued a policy statement regarding franchisors’ use of contract provisions such as non-disparagement, goodwill, and confidentiality clauses. This is another example of the...more

Morgan Lewis

FTC Expands Its Focus on Franchising Regulation with New Policy Statement and Staff Guidance

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The Federal Trade Commission (FTC) on July 12, 2024 released a policy statement warning that the use of contract provisions that prohibit franchisees from communicating with the government about legal violations are unlawful....more

Orrick, Herrington & Sutcliffe LLP

FTC reminds industries of its enforcement of the Franchisee Rule

On July 12, the FTC released a new policy statement, staff guidance, and an issue spotlight about allegedly unfair and deceptive practices by franchisors. The policy statement addressed the FTC’s concerns that franchisees...more

Cozen O'Connor

FTC Announces New Efforts Targeting Unfair and Deceptive Franchisor Practices

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The FTC announced that it has taken multiple actions to address growing concern about unfair and deceptive practices by franchisors. The FTC released a Policy Statement on Franchisors’ Use of Contract Provisions, Including...more

Lathrop GPM

FTC Takes Action Impacting the Franchise Relationship

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On Friday, July 12, 2024, the Federal Trade Commission (“FTC”) published an analysis of the information it received in response to its Request for Information related to  franchisors’ business practices, launched in March...more

Troutman Pepper

The FTC Intervenes in Franchise Relationships

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The U.S. Federal Trade Commission's (FTC) latest policy statement aims to dictate the outcome of contract negotiations between franchisors and their franchisees and to limit the potential negative impact on franchisees of...more

Polsinelli

Impact of the Texas Federal Judge Partially Blocking FTC Ban on Non-Competes for Franchisors and Franchisees

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As reported on July 3 by the Polsinelli Labor & Employment practice group alert, by order dated July 3, 2024 the Northern District of Texas granted a preliminary injunction preventing the Federal Trade Commission (FTC) from...more

Kaufman & Canoles

New Principles of Franchising from the IFA Legal Symposium

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The International Franchise Association (IFA) recently announced its core practices of responsible franchising and policy recommendations. The principles are grounded in transparency during the franchise sales process through...more

Akerman LLP

New FTC Rule Spares Non-Compete Clauses That Bind Franchisees, But Bans Most “Worker” Non-Compete Clauses

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On April 23, 2024, the Federal Trade Commission (FTC) voted to issue a Non-Compete Clause Rule that would ban most non-compete clauses in agreements between businesses and their “workers.” The final rule will take effect 120...more

UB Greensfelder LLP

FTC Issues Rule Prohibiting Non-Competes

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On April 23, 2034, the Federal Trade Commission (FTC) issued a final rule intended to ban the use and enforcement of most non-compete clauses signed by workers. The new rule is not in effect yet. It will become...more

BakerHostetler

Voluntary Dismissal as DOJ Contemplates Future of Criminal No-Poach Cases

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As we previously wrote, the Department of Justice’s (DOJ) April 2023 loss in United States v. Patel, its fourth in a criminal no-poach case, cast a pall over the agency’s enforcement efforts. The following month, the DOJ...more

ArentFox Schiff

Hospitality: 2023 Year in Review

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As we enter the final quarter of 2023, the ArentFox Schiff Hospitality Industry group has identified several opportunities and challenges that could impact the hospitality industry, including issues related to artificial...more

Ward and Smith, P.A.

How Fast Can I Franchise? Hold On a Minute

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Are you a small business owner who has considered franchising your business? Franchising can be a great way to expand your company's physical presence, grow your revenue, and increase your brand recognition....more

Manatt, Phelps & Phillips, LLP

Fresh Off the Grill: No-Poach Agreements May Lead to Per Se Antitrust Liability, Says 7th Circuit

Introduction - No-poach agreements, wherein companies agree not to solicit or hire employees away from a competitor, have been targeted by the White House, the Federal Trade Commission (FTC) and the Antitrust Division....more

Lathrop GPM

Seventh Circuit Reverses Dismissal of Anti-Poaching Class Action Against McDonald’s

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In an important case of first impression that drew amicus participation from the Department of Justice, the Federal Trade Commission, and the International Franchise Association, the Seventh Circuit reversed a judgment in...more

BakerHostetler

Licensing vs. Franchising: Are You Accidentally Creating a Franchise?

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A trademark license may seem straightforward. It is an arrangement that gives a licensee the right to use the licensor’s mark in some manner for some amount of time, with the licensor exercising quality control over the goods...more

Ward and Smith, P.A.

Commentary on Franchising Myths from the FTC

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Drive down almost any busy street, and you'll see numerous examples of well-known franchises, from McDonald's to Ace Hardware. You may have considered opening a franchise and wondered about the potential rewards and...more

Foley & Lardner LLP

“Your Comments Here”: the FTC Seeks Public Comment on the Nature of Franchise Relationships

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On March 10, 2023, the Federal Trade Commission (FTC) notified the public it is seeking comments from franchisors, franchisees, and other related parties about franchise agreements, franchisor business practices, and how...more

DirectEmployers Association

OFCCP Week In Review: March 2023 # 3

Friday, March 10, 2023: FTC Jumped into the “Joint-Employer” Fray and Also Broadened Its Attack on Non-Competition Agreements to Franchise Agreements - If you did not think things were bad enough already between private...more

Polsinelli

FTC Turns Its Attention to Franchising

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On Friday, March 10, 2023, the Federal Trade Commission issued a Request for Information (“RFI”) soliciting public comments on various issues pertaining to the franchisor-franchisee relationship, including franchisor supply...more

Mintz - Antitrust Viewpoints

Federal Trade Commission Continues Policy Initiatives by Seeking Public Comment on Franchisor-Franchisee Relationships

The Federal Trade Commission on Friday announced a Request for Information regarding “franchise agreements and franchisor business practices, including how franchisors may exert control over franchisees and their workers.”...more

ArentFox Schiff

FTC Contemplates Banning Non-Compete Covenants in Franchise Agreements

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On January 5, 2023, the Federal Trade Commission (FTC) published a proposed rule that, with limited exceptions, would both ban post-termination non-compete covenants in employment agreements and require rescission of existing...more

BakerHostetler

Decision Benefits Franchise Businesses and Finds Alston Bars Challenge to No-Poach Agreements

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In June 2021, the Supreme Court reaffirmed in NCAA v. Alston that antitrust claims under Section 1 of the Sherman Act “presumptively” call for rule-of-reason analysis and that only the rare case merits “quick look” or per se...more

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