News & Analysis as of

Franchise Fees Franchises

Fox Rothschild LLP

Not All Payments Qualify as “Fees” under State and Federal Definitions of a Franchise

Fox Rothschild LLP on

A recent court case (Cognex Corporation v. Air Hydro Power LLC) between a distributor and manufacturer is a reminder to franchise attorneys that not all amounts paid by a licensee to a licensor qualify as a “franchise fee”...more

Kilpatrick

Georgia Court of Appeals joins growing wave of courts rejecting local government franchise fee claims against streaming companies

Kilpatrick on

The Georgia Court of Appeals recently joined a host of trial and appellate courts across the country that have rejected local governments’ demands for video service franchise fees from streaming service companies. See...more

Fox Rothschild LLP

Unintended Consequences of Franchise Rescission Rights

Fox Rothschild LLP on

The right to rescind (or void) a contract is an extraordinary remedy. However, as franchise lawyers know, certain states provide franchisees a right to rescind a franchise agreement in certain situations, particularly where a...more

Fox Rothschild LLP

 Recent Illinois Case A Reminder of Broad Scope of “Franchise Fee” Element

Fox Rothschild LLP on

The recent case of Rhine Enters v. Refresco Beverage out of the federal district court of the Southern District of Illinois should be a reminder to licensors and manufacturers that avoiding the “fee prong” element of a...more

Best Best & Krieger LLP

California Supreme Court Rules on Franchise Fees for Solid Waste Contract

Court Determined City Did Not Show Solid Waste Franchise Fees Were Not Taxes - This week, the California Supreme Court held the City of Oakland failed to demonstrate that solid waste franchise fees included in the City’s...more

Best Best & Krieger LLP

FCC Cable Franchising: In-kind and Mixed Use Rules

PublicCEO Article Addresses Current Rules and What Happens Next - Over the last few years, the Federal Communications Commission (FCC) has been reinterpreting several key Cable Act provisions that govern cable franchise...more

Troutman Pepper

Streaming and Franchise Fees: Implications for Communications Infrastructure

Troutman Pepper on

The advent of video streaming services has diminished revenues local governments collect from cable video franchise fees. In response, many local governments scrutinized the laws and regulations authorizing the collection of...more

Best Best & Krieger LLP

Sixth Circuit Cable Order Challenged by City Coalitions

Franchise Requirements Should Not be Treated as Franchise Fees and Cable Operators Can be Charged Fees on Non-Cable Services, Cities Argue - Three coalitions of cities filed briefs with the U.S. Sixth Circuit Court of...more

Sheppard Mullin Richter & Hampton LLP

Sixth Circuit Affirms FCC Rule That Most In-Kind Contributions Are Franchise Fees

On May 26, 2021, a Sixth Circuit panel rejected challenges by numerous municipalities to a 2019 order by the Federal Communications Commission (FCC) that most “in kind” (non-cash) contributions required by cable franchisees...more

McAfee & Taft

Franchising cannabis businesses

McAfee & Taft on

Since the adoption of state legal medical marijuana in Oklahoma in 2018, commercial licenses in the industry have proliferated. Many prospective licensees lack the relevant cannabis experience to fully develop their business...more

Lewitt Hackman

New Revenue Rule Affects Franchisors

Lewitt Hackman on

An updated rule issued by the Financial Accounting Standards Board (“FASB”) will again change when most franchisors can recognize revenue in their financial statements from the sale of their franchises and their collection of...more

Kilpatrick

ASC 606 and Its Impact on the Franchise Industry

Kilpatrick on

Revenue is a key component of all businesses, including franchisors, and it is important that counsel to franchisors have an understanding of the potential effects that accounting changes relating to revenue recognition can...more

Fox Rothschild LLP

The Ballad Of The Hare And The Tortoise: FASB Delays ASC 606

Fox Rothschild LLP on

Surprise! On April 8th, FASB delayed for one year the implementation of the new ASC 606 revenue recognition standards for private companies, citing the coronavirus pandemic. In addition to delaying implementation, FASB...more

Best Best & Krieger LLP

FCC Denies Cable Franchise Order Stay Request But Provides Implementation Guidance

Best Best & Krieger LLP on

When the FCC’s Cable Franchise Order became effective on Sept. 26, it upended 35 years of common understanding on what a local government could obtain in cable franchise negotiations, which could cost local governments...more

Lewitt Hackman

Franchisee 101: If it Walks Like a Franchise, Talks Like a Franchise, it Might Be a Franchise

Lewitt Hackman on

Twin City Lodging LLC bought a Best Western Hotel in Mankato, Minnesota, then entered into a “Membership Agreement” with Best Western International. Best Western granted Twin City a license to operate the hotel under Best...more

Best Best & Krieger LLP

FCC Releases Cable Order that Will Cost Communities Hundreds of Millions of Dollars

The FCC released its third Section 621 Report and Order late Friday, which has the potential to cost local governments hundreds of millions of dollars in cable franchise fees. Also, unlike FCC cable orders in the past 10...more

Lewitt Hackman

Franchisor 101: No Need for Good Cause

Lewitt Hackman on

A Wisconsin federal judge granted summary judgment in favor of a food service and cleaning equipment maker (“Stoelting”), ruling that minimum purchase requirements under two dealer agreements were not a franchise fee under...more

Lewitt Hackman

Franchisor 101: New Revenue Recognition Rule for Initial Franchise Fees

Lewitt Hackman on

Most franchisors’ annual franchise registration renewal deadlines are a few months away. Nevertheless, franchisors should contact their accountants now regarding a new revenue recognition rule issued by the Financial...more

Lewitt Hackman

FRANCHISEE 101: Thirty-one Flavors of Fees (Or Just One)

Lewitt Hackman on

Baskin-Robbins charges a dairy supplier a so-called "commercial factor" fee for the right to make and sell Baskin-Robbins proprietary ice cream to franchisees. The supplier's pricing to franchisees includes an amount equal to...more

Lewitt Hackman

Accidental Franchise = Potential Lawsuits, Fines + Other Penalties

Lewitt Hackman on

Business owners looking to expand may leave themselves vulnerable to several obvious losses, including those related to finance, brand identity, and customer loyalty. Resources, including exemplary human resources, are...more

Lewitt Hackman

FRANCHISEE 101: Hawaiian Distributor May Be a Franchisee

Lewitt Hackman on

A long-standing distributor and licensee of Harley-Davidson motorcycles in Hawaii was entitled to proceed on its claim that the business relationship with Harley-Davidson Motor Company, Inc. was a "franchise" under Hawaii's...more

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JD Supra Privacy Policy

Updated: Dec 28, 2021:

JD Supra is a legal publishing service that connects experts and their content with broader audiences of professionals, journalists and associations.

This Privacy Policy describes how JD Supra, LLC ("JD Supra" or "we," "us," or "our") collects, uses and shares personal data collected from visitors to our website (located at www.jdsupra.com) (our "Website") who view only publicly-available content as well as subscribers to our services (such as our email digests or author tools)(our "Services"). By using our Website and registering for one of our Services, you are agreeing to the terms of this Privacy Policy.

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Information for EU and Swiss Residents

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You can make a request to exercise any of these rights by emailing us at privacy@jdsupra.com or by writing to us at:

Privacy Officer
JD Supra, LLC
150 Harbor Drive, #2760
Sausalito, CA 94965

You can also manage your profile and subscriptions through our Privacy Center under the "My Account" dashboard.

We will make all practical efforts to respect your wishes. There may be times, however, where we are not able to fulfill your request, for example, if applicable law prohibits our compliance. Please note that JD Supra does not use "automatic decision making" or "profiling" as those terms are defined in the GDPR.

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California Privacy Rights

Pursuant to Section 1798.83 of the California Civil Code, our customers who are California residents have the right to request certain information regarding our disclosure of personal information to third parties for their direct marketing purposes.

You can make a request for this information by emailing us at privacy@jdsupra.com or by writing to us at:

Privacy Officer
JD Supra, LLC
150 Harbor Drive, #2760
Sausalito, CA 94965

Some browsers have incorporated a Do Not Track (DNT) feature. These features, when turned on, send a signal that you prefer that the website you are visiting not collect and use data regarding your online searching and browsing activities. As there is not yet a common understanding on how to interpret the DNT signal, we currently do not respond to DNT signals on our site.

Access/Correct/Update/Delete Personal Information

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Changes in Our Privacy Policy

We reserve the right to change this Privacy Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our Privacy Policy will become effective upon posting of the revised policy on the Website. By continuing to use our Website and Services following such changes, you will be deemed to have agreed to such changes.

Contacting JD Supra

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Updates to This Policy

We may update this cookie policy and our Privacy Policy from time-to-time, particularly as technology changes. You can always check this page for the latest version. We may also notify you of changes to our privacy policy by email.

Contacting JD Supra

If you have any questions about how we use cookies and other tracking technologies, please contact us at: privacy@jdsupra.com.

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