News & Analysis as of

Franchisee

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

FRANCHISOR 101: Ostensible Agency Victory

by Lewitt Hackman on

A California federal judge dealt a major blow to employees of a Bay Area McDonald's in their effort to hold the franchisor responsible for its franchisee's alleged failure to pay wages and provide meal and rest breaks. The...more

Monthly Update—Australian Labour & Employment - February 2017

by Jones Day on

MESSAGE FROM THE EDITOR - In this edition of the Update, we discuss two significant developments that are likely to have far-reaching impacts for employers and employees across Australia. First, we discuss the proposed...more

Good news for franchisors from the U.S. Department of Labor?

We write to alert our clients and contacts about some positive comments made by the acting Solicitor General pertinent to franchise entities. Specifically, as reported today in Law 360, acting Solicitor General Nicholas Geale...more

Superior Court of Québec Confirms Validity of Percentage Royalties Paid by Pharmacist-Owners to Franchisor

The Superior Court of Québec (Court), presided by Justice M. Monast, recently ruled on an important point of contention for franchise pharmacies, by confirming the validity of a percentage royalty clause contained in a...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

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

Now in Effect: British Columbia’s Franchises Act

On February 1, 2017, British Columbia’s Franchises Act (B.C. Act) and Franchises Regulation (Regulation) came into force. Although the B.C. Act follows other provincial franchise legislation closely, including with respect to...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

Ostensible Agency, Hold the Class Certification: Would You Like Franchise With That?

by Seyfarth Shaw LLP on

It’s a common business model in the fast-food industry: a massive restaurant company provides the menu, the marketing—including catchy slogans and a universally recognized logo—and the basic operational standards for the...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

FRANCHISOR 101: Are Franchisees Your Employees?

by Lewitt Hackman on

Prudent franchisors have been reducing their apparent control over franchisees' employees to reduce the risk of becoming joint employers of those employees. But could a franchisor's control over the franchisees themselves be...more

Health-chising: Starting-up a Health Care Franchise

by K&L Gates LLP on

In recent years, health care franchises have grown at a rapid pace. Yet, it is worth noting that franchising is not a new concept to the health care industry. Health care franchise systems have been around for decades and...more

November 2016 Independent Contractor Misclassification and Compliance News Update

by Pepper Hamilton LLP on

Our news update for last month highlights the fact that IC misclassification lawsuits are happening across the country and in virtually every industry, both in the on-demand economy and in more traditional business sectors....more

FRANCHISOR 101: Recent “Franchisor as Joint Employer” Developments

by Lewitt Hackman on

In the last month, McDonald's settled a class action with employees of a franchisee, and a new President of the United States was elected. These two events have something in common with regard to franchising: they are...more

Catch-22 for Franchisors: The Joint Employment Dilemma

by Akerman LLP - HR Defense on

As government agencies steadily expand the concept of joint employment, franchisors increasingly find themselves in a difficult position. Since August 2015, when the NLRB ruled in Browning-Ferris that entities with the...more

Your Own Agreements Can Be Your Worst Enemy in IC Misclassification Cases

by Pepper Hamilton LLP on

Companies that use independent contractors (ICs) typically require ICs to sign a contractor agreement prepared by the company. But, if it is drafted like the one reviewed in late September by the U.S. Court of Appeals for the...more

Franchisors Should Consider Signing a Conditional Lease Assignment Rather Than a Franchisee’s Lease

by Snell & Wilmer on

In Franchise & High Properties, LLC v. Happy’s Franchise, LLC, a 2015 decision issued by the Court of Appeals in Michigan, the franchisor, Happy’s Pizza Franchise, LLC, signed a five-year lease for the commercial space to be...more

Franchisee’s & Self-Employment Taxes

by Dickinson Wright on

In a recent Chief Counsel Advice (CCA 201640014, issued 9/30/2016), the Office of Chief Counsel (“OCC”) of the Internal Revenue Service found that all of a franchisee’s share of earnings from a partnership that operating...more

Joint / Related / Common Employers: Are You at Risk

by Dickinson Wright on

In recent years, a number of cases have emerged in both Canada and the United States discussing new implications for companies deemed to be joint and related employers. Cases both from the United States and across Canada will...more

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