News & Analysis as of

Franchises

NRD Capital Management’s Strategy and Focus: Q&A With Susan Beth

by McGuireWoods LLP on

Susan Beth is chief operating officer of NRD Capital Management, an Atlanta-based private equity firm. Q: How would you describe NRD’s investment focus? Susan Beth: NRD Capital is focused on investing in multi-location,...more

Valuing the Older Hospitality Facility Can Be Complicated

by Dickinson Wright on

Hospitality facilities built in the 1980s or 1990s (or earlier) tend to have design and layout configurations that are out of touch with a franchisor’s present market requirements. This jeopardizes the continued franchise...more

Workplace Relations Risks to Franchisors and Holding Companies Rise

by K&L Gates LLP on

The Federal Parliament this week passed the Fair Work Amendment (Protecting Vulnerable Workers) Act 2017 (the Act), with some last minute amendments agreed to by the Government. This new legislation marks a significant change...more

Seventh Circuit Rejects And Lambastes “Worthless” Settlement For Class Of Subway Sandwich Purchasers

by Seyfarth Shaw LLP on

Seyfarth Synopsis: In In Re Subway Footlong Sandwich Mktg. & Sales Practices Litig., No. 16-1652 (7th Cir. Aug. 25, 2017), the U.S. Court of Appeals for the Seventh Circuit overturned a district court’s approval of a class...more

Franchise Litigation Rising Over Dietary Considerations

by Lewitt Hackman on

Rising concerns over food sourcing and preparation is leading to more and more litigation for restaurants and franchises. Most of the lawsuits claim discrimination, which makes sense as many dietary strictures are rooted...more

Gas Station Dealers: A Review of the Petroleum Marketing Practices Act

by Lewitt Hackman on

So far in 2017 no federal or state court in California issued a published decision under the Petroleum Marketing Practices Act (“PMPA”) – despite the fact gasoline demand and consumption continue to rise. The reason for fewer...more

Un-Vacated: Nevada Supreme Court Confirms $6.7M Franchise Arbitration Award

In a decision that is very skinny on the facts, a unanimous Nevada Supreme Court recently un-vacated a significant arbitration award in a dispute over dental franchises. In Half Dental Franchise, LLC v. Houchin, 2017 WL...more

Six Ways Franchisors Can Reduce Joint Employer Liability Risk

by Lewitt Hackman on

In January 2016, the National Labor Relations Board (NLRB) determined that indirect control or the reserved right to control, even if unexercised, could be sufficient grounds to find a joint employer relationship between a...more

DOL Withdraws Guidance Letters Leaving Employers to Pick up the Pieces

On June 7, 2017, the U.S. Secretary of Labor Alexander Acosta announced the withdrawal of the U.S. Department of Labor’s (“DOL”) guidance on independent contractors and joint employment issued during the Obama administration,...more

Eleventh Circuit Doesn’t Waffle on Enforceability of Arbitration Agreement

by Carlton Fields on

The Eleventh Circuit Court of Appeal found that an arbitration agreement entered into by a putative class representative and his eventual employer was enforceable even though the agreement was signed after the plaintiff filed...more

Disabling Code: Franchisors Should Ensure Digital Properties Are Accessible

by Lewitt Hackman on

Are we still in the dawn of the digital age, or have we moved on to mid-morning yet? Only time, and your company's web site and applications, will tell. Unfortunately, when it comes to website accessibility, it is still...more

Is Everything “Settled” In Your Settlement Agreement? Not Quite!

by Fox Rothschild LLP on

A recent case involving the Whataburger franchise system reminds franchisors of the importance of the use of iron-clad language when granting future development rights. In Whataburger, Inc. et. al. (“Whataburger”) v....more

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

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