News & Analysis as of

Franchises

NLRB Affirms Employer's Right to Terminate Employees Who Disparaged Company's Food Safety Practices

Over the past several years, we have reported on a seemingly never-ending series of National Labor Relations Board (NLRB) decisions proclaiming a variety of abusive employee practices as protected behavior under federal labor...more

So You Say You Want a Revolution? Franchises Evolve as Retail Declines

by Lewitt Hackman on

You’ve seen the news: retailers are struggling. Traditional anchor stores like Macy’s and Sears are closing up shop, creating a domino effect of fiscal death for shopping malls across the country. The Los Angeles Times...more

Sixth Circuit Vacates FCC Cable Franchise Rules on Mixed-Use Networks and Treatment of In-Kind Payments, Remands for Further FCC...

by Davis Wright Tremaine LLP on

On July 12, 2017, the U.S. Court of Appeals for the Sixth Circuit vacated two parts of the Federal Communications Commission’s decisions that had limited the ability of local franchising authorities (LFAs) to regulate...more

Franchising – The route to international expansion?

by Dentons on

Franchising is a proven route to the successful international expansion of businesses in various sectors from fitness studios and restaurants to high end fashion and beauty. Annually it accounts for turnover of USD$300...more

House Hearing Explores Legislative Remedy to Joint Employer Confusion

by Littler on

On July 12, 2017, the U.S. House Committee on Education and the Workforce held a hearing concerning the need for legislation to redefine the joint employer standard. As many employers are aware, the interpretation of when...more

Joint Amicus Brief Filed to Protect Franchise Business Model - BB&K’s Thomas O’Connell Counsel of Record

by Best Best & Krieger LLP on

Best Best & Krieger LLP attorneys Thomas O’Connell, as counsel of record, and Roger Crawford recently submitted an amicus curiae brief to the U.S. Supreme Court on behalf of the International Franchise Association, American...more

No Damages for Plaintiff Since Dry Cleaner Agreed to Hang Up Trademark Use

by McDermott Will & Emery on

The US Court of Appeals for the Eighth Circuit affirmed a permanent injunction enjoining a dry cleaner franchisee from using plaintiff’s trademarks but explained that plaintiff was not entitled to punitive damages, costs or...more

Will That Sandwich Make You Sick? – 8th Circuit Holds NLRA Does Not Protect Disparaging Statements By Jimmy John’s Employees

by Dorsey & Whitney LLP on

On July 3rd, the 8th Circuit held that disparaging statements made by Jimmy John’s employees in a labor dispute were not entitled to National Labor Relations Act (“NLRA” or “The Act”) protections – because the actions were...more

Sale Of A Contract: Capital Gain Or Ordinary Income?

by Farrell Fritz, P.C. on

Maximize Capital Gain- In the sale of a business, it is the goal of every business owner and his tax adviser to minimize the amount of gain realized and, to the extent gain is realized, to maximize the amount that is...more

FRANCHISEE 101: McDonald's Shaking Damages for OT Policy

by Lewitt Hackman on

In Los Angeles Superior Court, McDonald's claimed victory when 6,600 workers seeking $41 million in back pay and penalties came away with less than 2% of the amount sought in a claim that the fast-food giant cheated them out...more

FRANCHISOR 101: Donut Franchise Relationship Dissected by Court

by Lewitt Hackman on

The parent of Dunkin' Donuts was named along with Starbucks and about 80 other coffee sellers, distributors and retailers in a 2010 lawsuit alleging violations of California's Proposition 65 and Safe Drinking Water and Toxic...more

District Court Protects Franchisor Against Anti-Contractual Competition in Frye

by Baker Donelson on

On Valentine's Day of 2017, the United States District Court for the District of Maryland gave franchisors the legal equivalent of two dozen roses when it decided Frye v. Wild Bird Centers of America, Inc., 2017 WL 605285 (D....more

Federal Court Rules Against Yum! Brands in Third-Party Franchise Sale Case – What Franchisors Need to Know

by Baker Donelson on

A federal court in Kentucky recently denied a franchisor's request to dismiss its franchisee's claim for intentional interference with prospective economic advantage. Based on this ruling, franchisors should proceed with...more

Financing Hotels in the United States: Key Considerations

by Shearman & Sterling LLP on

Hotels differ from other types of stabilized properties in several major ways. The purpose of this article is to highlight how the distinguishing factors impact the way that owners and lenders approach the negotiation of key...more

Franchise agreements under the South African Consumer Protection Act

by Dentons on

Prior to the enactment of the Consumer Protection Act 68 of 2008 (the CPA), there was no specific piece of legislation that regulated franchises. In this article, we provide a brief overview of some important aspects related...more

Is Your Agreement To Arbitrate Valid?

by Fox Rothschild LLP on

Many franchisors employ arbitration as its preferred method of dispute resolution. Generally, courts view arbitration agreements favorably. An agreement to arbitrate waives the fundamental right to have a court decide the...more

Not A Minor Issue! FTC Updates COPPA Compliance Plan

by Fox Rothschild LLP on

This week, the Federal Trade Commission (FTC) updated its guidance for businesses on complying with the Children’s Online Privacy Protection Rule (COPPA) . If a website operator or operator of online services collects...more

Department of Labor withdraws joint employer guidance

by McAfee & Taft on

A joint employer relationship can arise in circumstances where an individual performs work for two entities that share control over how that individual performs his/her work. Although joint employment relationships are most...more

Old Grounds: A Lack of Prop 65 Warnings Brew Trouble for Coffee Franchisors

by Lewitt Hackman on

California Prop 65 warnings – many residents barely notice these anymore, as we’ve lived with Safe Drinking Water and Toxic Enforcement Act notices for over 30 years now. They appear at gas pumps; in apartment and office...more

Franchise Law: Burden of Joint Employer Just Got a Little Lighter

by Lewitt Hackman on

Direct control, indirect control…these are the employment litigation phrases that had franchisors cowering in duck-and-cover positions over the last few years. But the Department of Labor just issued a statement to breathe...more

Content from PK Law: 5 Questions with Ken Jacobs 9Round

by Pessin Katz Law, P.A. on

After receiving an employee severance package from Air Products in Sparrows Point, Ken Jacobs and his wife Julie considered numerous franchise concepts before settling on 9Round, a kickboxing gym that is rapidly expanding....more

Jan-Pro International Is Not The “Employer” Of Its Franchisees And Did Not Commit Wrongdoing, Court Finds

On May 24, a federal judge in California polished off a three-state win by master franchisor, Jan-Pro Franchising International, Inc., finding that under California law, unit franchisees (subfranchisees) who had franchise...more

Franchise Compliance: Franchising infringement notices and pizza

by Dentons on

A recent decision by the ACCC to issue infringement notices to a franchisor demonstrates the need for franchisors to comply with the ongoing disclosure requirements to franchisees under the Franchising Code of Conduct....more

New Arizona Law Releases Chokehold on Franchise Employment Status Dilemma

by Dickinson Wright on

On March 21, 2017, Arizona Governor Doug Ducey signed into law House Bill 2322 which is Arizona’s response to the legal controversy plaguing many franchisors relative to imputed joint employment. The law holds that no...more

Commonwealth Court Unanimously Holds that Local Business Privilege Tax Must be Fairly Apportioned

by Cozen O'Connor on

A panel of the Commonwealth Court unanimously held that a local Business Privilege Tax (BPT) imposed on fees paid by Pennsylvania 7-Eleven franchisees to 7-Eleven’s regional office in the township was unconstitutional because...more

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