Franchises

News & Analysis as of

Getting to know British Columbia’s new franchise legislation

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

Ninth Circuit Affirms California District Court’s Confirmation Of Arbitration Award

In this matter, a California district court confirmed an arbitration award in favor of D.A.R.E. America, and denied a motion to vacate the arbitration award by D.A.R.E. New Jersey, Inc. D.A.R.E. New Jersey, Inc. appealed to...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

Franchising of Restaurants in the Gulf Cooperation Council

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

Must A False Statement To A Franchisee Be Made “In this state”?

The list of instruments and interests included within the definition of a “security” in California Corporations Code Section 25019 is long. A franchise, however, is not to be found amongst the named. In fact, the statute...more

Regulation A+: A Capital-Rising Method that is Ready for Franchising

In a prior article published in Franchising Today, we addressed the intersection of franchises and crowdfunding, a method of business financing which was made legal through rulemaking on the part of the Securities and...more

SBA Changes the Game

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

Requiring Non-Competes for Low Level Employees Raises Increasing Risks for Employers

A client recently asked us to draft a non-competition agreement that would prevent entry level machinists from working for a competitor for one year following their departure from employment. When we asked the client about...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

A Family Victory! Victory! Just Not for Little Caesars

The United States Patent and Trademark Office, Trademark Trial and Appeal Board (the “Board”) modified its treatment of the “family of trademarks” doctrine in the recent case In re LC Trademarks, Inc., Serial No. 85890412...more

The Practical NLRB Advisor - Issue 4 | Winter 2017

The National Labor Relations Board (NLRB) continued making life more difficult for employers in 2016. The agency issued a host of decisions that significantly expand the number and type of individuals that unions can seek to...more

New Year brings new SBA financing rules

The Small Business Administration (SBA) has been a supportive, albeit imperfect, partner in helping franchisees obtain financing and thus helping franchise systems grow. Among other things, the SBA guarantees a significant...more

Indiana Court of Appeals Allows Negligent Hiring Claim Despite Admission that Employee Acted Within Scope of Employment

The Indiana Court of Appeals recently determined that a negligent hiring claim against Pizza Hut can continue to move through the trial court after finding that the trial court erred when it granted summary judgment in favor...more

The New SBA Addendum

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

Illinois Biometric Privacy Suit over Collection of Fingerprints Settled

Earlier this month, an Illinois state court approved a $1.5 million settlement in a class action against L.A. Tan Enterprises, Inc., operator (directly and through franchisees) of L.A. Tan tanning salons. The settlement...more

President-Elect Trump Announces the New Secretary of Labor

Today, President-elect Donald Trump announced Andrew Franklin (Andy) Puzder, 66, chief executive officer of CKE Restaurants, as his choice for Secretary of the U.S. Department of Labor. In 2016, Puzder was a Trump...more

Health-chising: Starting-up a Health Care Franchise

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

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

2017 Labor & Employment Laws: New Year, New Government, New Challenges

On January 1, 2017, employers across the nation will face a host of new or amended federal, state, and/or local labor and employment requirements. At the same time, there is uncertainty as to how the Trump Administration and...more

Republican Congressmen Continues Information Demand on OSHA Joint-Employer Standard

Congressional leaders again have pressed the Department of Labor for information on the Occupational Safety and Health Administration’s potential guidance to OSHA investigators on determining if there is a joint-employer...more

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