Franchises

News & Analysis as of

Uncharted Territory: Seattle’s $15 Minimum Wage Ordinance

The City of Seattle’s Minimum Wage Ordinance is set to take effect April 1, 2015.  When it does, Seattle will have the highest minimum wage in the nation, outpacing larger metropolises like San Francisco and New York City....more

FRANCHISOR 101: California Increases Time for Automatic Effectiveness from 15 to 30 Business Days

A new California law has given the California Department of Business Oversight, the State's regulator of franchises, more time to review franchise registration and renewal applications, with the result that franchisors, their...more

Saladworks, LLC files Chapter 11 in Delaware

On February 17, 2015, Saladworks, LLC filed a chapter 11 bankruptcy case in Delaware. The case has been docketed as case no. 15-10327 and has been assigned to The Honorable Laurie Selber Silverstein....more

The GPMemorandum, Issue 190

In this Issue: - Court Grants Preliminary Injunction Enforcing Covenant Not To Compete Against Former Franchisee - Ninth Circuit Affirms Summary Judgment In Franchisor's Favor - Seventh Circuit Finds No...more

The Next Wave of Joint Employment Litigation

A looming surge of cases threatens to expand the joint employment doctrine and fundamentally alter the operations of franchisors, retailers, and businesses utilizing independent contractors within the four walls of their...more

The Diminishing Tip Credit: Another Reason it is becoming Harder to Comply with Wage & Hour Laws in New York

Executive Summary: On January 30, 2015, the New York State Department of Labor's ("NYSDOL") Wage Board (the "Wage Board") voted to recommend a fifty percent increase in the minimum hourly rate for tipped workers, from $5.00...more

How to Bring a Franchise Brand to the US

What’s the best way for a successful franchisor outside the U.S. to launch its brand within the U.S.?  Here is one suggested approach: You can read a more detailed explanation of this process in a paper I recently wrote for...more

Rumors Of Joint Employer Liability For Frachisors Are Greatly Exagerated

Despite the hand wringing and pontifications that franchisors will now be deemed employers or joint employers of the employees of their franchisees, that is simply not the case. The long held protections enjoyed by...more

January 2015 Independent Contractor Compliance and Misclassification Update

JANITORIAL FRANCHISE COMPANY SETTLES ITS APPEAL OF $4.8 MILLION JUDGMENT IN FAVOR OF MISCLASSIFIED CUSTODIANS. Coverall North America Inc. settled the independent contractor misclassification case filed against it by a class...more

FCC Clarifies That Competitive Cable Franchising Rules Do Not Preempt State Franchising Laws, And Affirms Application Of Its 621...

Nearly eight years after issuing its so-called “621 Order” limiting local governments’ actions and authority over competitive cable franchising, and its 2007 Second Report and Order which extended to incumbent cable operators...more

Oakland A’s May Not Move, Ninth Circuit Says

After the Ninth Circuit’s decision on January 15, 2015, Major League Baseball maintains its exemption from the antitrust laws. Since the Supreme Court established baseball’s antitrust exemption nearly a century ago in 1922,...more

Franchise and Distribution News - January 2015

TAKE ACTION NOW TO AVOID UNEXPECTED STATE TAX LIABILITIES - Traditionally, nexus for state income tax liability has required some type of physical presence or continuous contacts by the franchisor/distributor with a...more

Franchising and Liability Under the FCPA

I am often asked about franchisor liability under the Foreign Corrupt Practices Act (FCPA). Franchising has been a successful model in the US and now many corporations are looking at overseas expansion opportunities....more

FRANCHISEE 101: Complying with the FDA's New Menu Labeling Requirement

On November 25, 2014, the Food and Drug Administration (FDA) released final rules governing menu and vending machine labeling to implement some of the Affordable Care Act's nutrition labeling requirements. The final...more

Deciphering the Franchise Disclosure Document Part 2

If you are going to buy a franchise, federal law requires the franchisor to make certain information available to help you evaluate what you are getting into. This information is provided in a “franchise disclosure document”...more

FRANCHISOR 101: Accidental Franchises in Industries Not Typically Associated With Franchising

Almost everyone recognizes the nation's most prominent franchises: McDonald's, Domino's, Hilton or 7-Eleven, to name a few. And business people are becoming aware that arrangements that look like franchises, but are...more

Navigating the Cyber Liability Storm - Part II

Franchisors are facing a precarious three-way intersection of increased accountability and regulation over consumer privacy, the growing volume and sophistication of cyber-attacks on consumer data, and the expanding...more

Navigating the Cyber Liability Storm Part I

Franchisors are facing a precarious three-way intersection of increased accountability and regulation over consumer privacy, the growing volume and sophistication of cyber-attacks on consumer data, and the expanding...more

The National Labor Relations Board 2014 Year in Review - Overview of the Board's Significant Actions

Introduction - If the National Labor Relations Board seemed to be on the ropes in 2013, it certainly came out swinging in 2014. Last year, we reported that the Board faced a number of serious legal battles. Although...more

It’s All in the Family: Shifting Standards for Joint-Employer Liability

The concept of joint-employer liability is popping up in the news a lot again. This is because the NLRB is taking a more aggressive view on joint-employer standards under the National Labor Relations Act, particularly as to...more

Don’t Overlook The Need to Show Irreparable Harm When Seeking Injunctive Relief to Enforce a Non-Compete

When seeking preliminary injunctive relief to enforce a non-compete, the moving party is often focused on how obvious it is that the defendant breached the parties’ agreement. As 7-Eleven recently learned, however, even when...more

Some Multi-Unit Franchisees are Public Companies

While most of the private equity and public offering activity of franchise companies focuses on franchise brands and systems, every now and then a large, multi-unit franchisee will go public or seek private equity financing....more

The Right Fit - January 2015

Retailers, hoteliers and franchisors will welcome a recent decision of the Court of Justice of the European Union (ECJ) which confirmed that it is possible to register the design of the fit-out of a retail store as a trade...more

Bay Area Blues: San Francisco's Employers/Franchisees Face Retail Workers Bill of Rights

Doing business in San Francisco can be difficult, to say the least. At $10.74/hour, the city already had the highest minimum wage in the country at the end of 2014. On January 1, 2015, San Francisco employers began shelling...more

Deciphering the Franchise Disclosure Document Part 1

If you are going to buy a franchise, federal law requires the franchisor to make certain information available to help you evaluate what you are getting into. This information is provided in a “franchise disclosure document”...more

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