Franchises

News & Analysis as of

NLRB Adopts New Joint Employer Test: Companies That Kind of, Sort of, Maybe Someday Could Exercise Control Over Employees Can Be...

The NLRB dropped a major bomb on businesses in subcontracting, franchising, and temporary staffing relationships yesterday, adopting a new—very, very broad—definition of joint employment. In Browning-Ferris Industries of...more

NLRB Finds Joint Employer Status Can Exist Merely Based on Indirect or Potential Control

Overturning decades of precedent, the National Labor Relations Board (NLRB), on August 27, 2015, issued its long-awaited decision in Browning-Ferris Industries of California, Inc. d/b/a BFI Newby Island Recyclery, 362 NLRB...more

NLRB Starts Down The Slippery Slope With Controversial New Joint Employer Ruling

In a 3-2 decision, the National Labor Relations Board (NLRB) announced yesterday a broad new standard for determining whether two businesses are “joint employers” for purposes of collective bargaining. Browning-Ferris...more

You’re Not the Boss of Me – The NLRB May Disagree

With a few key strokes, the NLRB yesterday, in a 3-2 decision down party lines, wiped away years of precedent and re-wrote, or, in its words “refined,” the definition of a joint employer. In a ruling that will, if upheld...more

The NLRB’s “Radical” Joint Employer Decision Is The Biggest Win For Unions In Years

Yesterday, in Browning Ferris Industries of California, Inc., the National Labor Relations Board (NLRB) overruled 30 years of authority on the issue of joint employers. In a decision which two Board Members called the “most...more

Seminal NLRB Decision Redefines Joint-Employer Liability

In a highly anticipated decision, the National Labor Relations Board (NLRB) handed down a ruling today that companies can be held responsible for violations of labor standards committed by their contractors. At issue, was...more

Tastes Like Chicken, Not a Copyright

A common refrain: “There must be a way to protect this idea, either by trademark or copyright.” Regrettably, in many instances, the answer is “none of the above.” Take, for example, the humble chicken sandwich....more

Seeking Injunctive Relief: How Irreparable Harm Has Been Analyzed in Federal and State Courts

One of the most important considerations New Jersey practitioners encounter when seeking injunctive relief is where to file: state (Chancery Division) versus federal (district) court. In non-emergent complex litigation, this...more

Is There a Lesson from Dunkin’ Donuts for Franchisors Outside Quebec?

The Quebec Court of Appeal has recently upheld the 2012 decision of the Superior Court awarding substantial damages – CA$10.9 million – to former franchisees of Dunkin’ Donuts.1 Application for leave to appeal was filed with...more

Revisions to California Franchise Relations Act to Provide Greater Protections for Franchisees

The California Senate is putting the final touches on revisions to the California Franchise Relations Act. The law, when enacted, will increase franchisee protections against unilateral termination, provide more notice in the...more

FRANCHISEE 101: Franchisee Keeps Case in Home Court Despite Forum Selection Clause

Rob & Bud's Pizza ("R&B") is a Papa Murphy's franchisee and owns and operates multiple Papa Murphy's Take 'n' Bake Pizza restaurants in Arkansas, Missouri and Kansas. In April 2014, R&B and other Papa Murphy's franchisees...more

The Competition and Markets Authority's consultation on "Competition in passenger rail services in Great Britain" - On 17 July...

On 17 July 2015, the Competition and Markets Authority (CMA) published its consultation document regarding competition in passenger rail services in Great Britain. This followed its announcement in January that it intended to...more

The Unintended Consequences of Public Ownership of Sports Stadiums – The NFL meets Concealed Carry Gun Permits

“Politics is tricky; it cuts both ways. Every time you make a choice, it has unintended consequences.” — Stone Gossard A recent opinion from the Tennessee Attorney General’s office, No. 15-63, July 29, 2015, illustrates...more

FRANCHISEE 101: Hawaiian Distributor May Be a Franchisee

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

Wage Board Recommends an Increase in the Minimum Wage for Fast Food Workers to $15.00 Per Hour

On July 22, 2015, the Fast Food Wage Board (which was empaneled at the direction of Governor Cuomo to investigate and make recommendations regarding an increase in the minimum wage for employees in the fast food industry)...more

New York Bill Follows California’s Lead to Recognize Professional Cheerleaders as Employees

It’s official—professional cheerleaders are now recognized as employees under California law. On July 15, 2015, California Governor Jerry Brown signed a bill that requires all California-based professional sports teams to pay...more

Reflections on the Origins of the NY Franchise Act

I recently had occasion to review the legislative history of the New York Franchise Sales Act (NYFSA). The NYFSA was enacted into law in 1980 and became effective January 1, 1981. At that time, Robert Abrams was the NY...more

Looking Forward by Looking Back: China’s Franchise Regulations After Eight Years

On July 1 and 2, we, representing the International Franchise Association, met with China’s franchise regulators in Beijing and Shanghai. The conversation would be familiar to anyone who has been closely following the...more

Do You Know Who Your Employees Are?

Employers are beginning to learn that they may have far more employees than they think. A driver for the ride sharing company Uber was considered an “employee” by the California Labor Commissioner’s Office earlier this month....more

Eighth Circuit Upholds Arbitration Agreement In Absence Of Actual Proof Of Unconscionability Due To Cost

The Eighth Circuit affirmed a decision by the U.S. District Court for the Eastern District of Missouri which rejected the contention that an arbitration agreement was unconscionable, and unenforceable under the Federal...more

FRANCHISEE 101: Pay Now or Pay Later – Liquidated Damages & Future Royalties

Super 8 Worldwide, Inc. v. Anu, Inc. serves as a reminder to franchisees that, in general, courts will hold franchisees and their guarantors liable to their franchisors for losses suffered when franchisees abandon their...more

FRANCHISOR 101: Disclosure Violations & Running the Risks of Rescission

Despite a district court's recent decision in Braatz, LLC v. Red Mango FC, LLC, franchisors are well advised to comply with applicable disclosure requirements to a "T" to ensure new franchisees will not have an ongoing right...more

Asset-Light Strategy Issues in the Development Space

While asset-light strategies have been used for decades in the hotel industry, the strategy and how to implement it are a bit more complicated in the development space, whether for a hotel or time-share company. A typical...more

What’s an Exclusive Territory?

The extent of a franchisee’s territorial rights is the subject of Item 12 of the franchise disclosure document (FDD). One of the questions franchisors must address in Item 12 is whether the territory is exclusive....more

San Francisco Is About to Begin Enforcing the Retail Workers Bill of Rights – Are You in Compliance?

On July 3, 2015, the San Francisco Retail Workers Bill of Rights becomes operative. This ordinance creates major changes for many companies doing business in San Francisco. Employers Affected - The law applies...more

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