Franchises

News & Analysis as of

Brexit: what might it mean for franchising? Top points

The effect of the Brexit vote is not, of course, just about the UK. It affects continental Europe and beyond. Post referendum, the UK is on course to leave the European Union and one of the effects of that will be the need...more

Franchising Update

Franchising is set to undergo change following the Australian Federal election. The Senate Standing Committee on Education and Employment recently recommended further amendments to the Franchising Code of Conduct to allow...more

How will franchising be affected by Brexit?

Following the Brexit vote, the international franchise community needs to consider the implications of the exit of a major European economy, the United Kingdom, from the EU. Europe is an important market for many UK and US...more

NLRB, Seeking to Connect to "Reality of Today's Workforce," Changes Organizing Standard

The National Labor Relations Board (NLRB) continues to change the rules governing the relationships between employers, employees and unions in an effort to give unions new ways of organizing. On July 11, 2016, the NLRB issued...more

Sixth Circuit Tri County Decision Provides Much-Needed Clarity on “Successor” Provision in Ohio Franchise Law

I attach a copy of the US Court of Appeals for the Sixth Circuit’s recent decision in Tri County Wholesale Distributors v. Labatt USA Operating Company, Nos. 15-3710/3769 (6th Cir., July 6, 2016). For students of the...more

Hospitality Industry Law Newsletter

Who Are My Employees? The legal landscape for employers is changing. Led by the National Labor Relations Board (the “NLRB”), there is a growing trend to hold employers accountable, not only for their own employees, but...more

What Does Brexit Mean for Franchisors?

The coming negotiation over the specifics of the UK’s departure from the EU is an unfortunate necessity that follows from the UK’s unfortunate “leave” vote on June 23, 2016. It is too early to know what the relationship...more

Electronic and Courier Delivery Coming to Ontario

After long anticipation from the franchise industry, the government of Ontario has finally amended regulations under the Arthur Wishart Act (Franchise Disclosure), 2000 (“Act”) to expressly allow a franchisor to deliver its...more

Legislative Update: Electronic Disclosure to Prospective Franchisees Coming to Ontario July 1, 2016

Effective July 1, 2016, Ontario will permit disclosure documents required under the Arthur Wishart Act (Franchise Disclosure), 2000 (Act) to be delivered electronically to prospective franchisees. The Act provides that a...more

Illinois Attorney General Sues Jimmy John’s Over Non-Competes

Last week, the Illinois Attorney General filed suit against Jimmy John’s, alleging that the company’s non-competes violate state law. These non-competes prohibit all employees, including sandwich makers, from working during...more

Are you ready? Ontario's Healthy Menu Choices Act in effect January 2017 - key highlights

The Ontario Healthy Menu Choices Act, 20151 and its regulation2 become effective January 1, 2017. The Act, which received Royal Assent in May 2015, sets out the parameters for menu labeling when a food establishment has 20...more

[Webinar] Beware of the “Inadvertent” Franchise - Meritas Capability Webinar - June 29th, 1:00p.m. U.S. CDT

In upholding a $1.575M jury verdict against Mitsubishi Caterpillar Forklift for failure to comply with the termination provisions of the Illinois franchise law, the Seventh Circuit Court of Appeals cautioned: “Legal terms...more

Attorney General Madigan Sues Jimmy John’s over Non-Compete Agreements

On Wednesday, Illinois Attorney General Lisa Madigan filed suit against fast-food franchisor Jimmy John’s and several Jimmy John’s franchisees operating in Illinois claiming that Jimmy John’s and its franchises unlawfully...more

Notice of Rights Enhances Trade Secret Protection

In order to access the full range of remedies the Defending Trade Secrets Act of 2016 (DTSA) offers, a trade secret owner must notify employees and contractors of certain rights they have under the DTSA....more

FRANCHISOR 101: State Bills re Franchisor Joint Employer Liability

With franchisors deeply concerned about joint liability for franchisee employees, more states are passing laws trying to prevent that from happening. Here are some states and measures that have passed: Texas enacted...more

FRANCHISEE 101: What to Do About Franchisor’s Harmful New Policies

Franchisees aren't always excited when their franchisor introduces a new policy. But if a new policy overreaches and might doom a franchisee's business, can it be stopped before it starts?...more

Competition News May 2016

Divesture commitments in a merger operation: reminder to maintain the profitability of the transferred business - On April 19, 2016, the French Competition Authority (FCA) once again punished the failure to respect the...more

Top tips for franchisors entering Australia

The franchising industry is projected to post annualised growth of 2.8 per cent over the next five years according to a recent report by IBIS World – one of the leading industry researchers operating in that market. The...more

Loyalty Programs: All Fun and Games Until Someone Wants You to Buy Them a Harrier Jump Jet

In-house counsel should consider the myriad legal issues that can affect a consumer loyalty program, including numerous consumer, franchisee and regulatory issues....more

U.S. Supreme Court rejects challenge to Seattle minimum wage law

On May 2, 2016, The U.S. Supreme Court declined to hear the legal challenge to the Seattle Minimum Wage Ordinance’s impact on Seattle franchisees (IFA v. Seattle–denial of cert). We have blogged about Seattle’s Minimum Wage...more

New Georgia Law Says Franchisors Generally Not Employers of Franchisees or Franchisees’ Workers

The “Protecting Georgia Small Businesses Act” amends Georgia’s Labor and Industrial Relations Code to provide that neither a franchisee nor a franchisee’s employee is considered an employee of a franchisor for “any purpose.”...more

FRANCHISEE 101: Understanding Merger/Integration Clauses

Before a final agreement is signed there are often oral discussions, negotiations, and representations. There may be written memorandums of understanding or letters of intent. But, when the final agreement has a "merger" or...more

“Indirect Control” — New NLRB Joint Employer Rule Headed for Appeal

Hoteliers still reeling from the National Labor Relation Boards’ (NLRB’s) dramatic change to the legal test for joint employer liability may find some solace in the fact that this issue is destined for appellate review. In...more

Oman Market Developments

The Sultanate of Oman is the longest continually independent Arab country in modern history, having marked the 45th anniversary of its establishment last year. Looking to the future the Sultanate's long term strategy, Vision...more

An Intellectual Property Primer for Franchisors

Intellectual property is a core asset of any franchisor. In fact, intellectual property is important to virtually all businesses. For some companies, it’s their most valuable asset. A basic knowledge of intellectual property...more

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