Franchisors

News & Analysis as of

The GPMemorandum, Issue 178

In This Issue: - Appellate Court Vacates Order Denying Franchisor’s Motion For Preliminary Injunction; District Court Then Grants Summary Judgment To Franchisor And Enters Final Injunction: In H&R Block Tax...more

Franchisor Liability For Franchisee Employees: Damn Weasels

Weasel words, not epithets for employees with legal claims, are the problem. “…[C]ourts have been nearly uniform in holding that a franchisor should not be deemed to be an ‘employer’ … when plaintiff works for an...more

Top franchise cases of 2013

1. In Hanley v. Doctors Express Franchising, LLC, a former franchisee of the Doctors Express franchise system sued Doctors Express, the franchisor, and Rhino 7, a broker involved in the franchise sale, asserting that the...more

Reviewing Franchising and Business Opportunity Fundamentals

After creating a successful business model, expansion becomes the next natural step. But such growth usually requires the involvement of third parties, especially if resources are limited. There are several ways to expand...more

The Advisor, Winter 2014 - Franchise Law Series: Part One

A “Pet Valu” franchisee in Ontario claimed that sales were declining, so the owner tried to escape her franchise agreement. After termination of the agreement, her husband established a competing “Pet Stuff” business nearby....more

Focused on Franchise Law - February 2014

FRANCHISOR 101: Franchisor Successfully Fends Off Fraud Claims - There are circumstances when a fraud claim will not succeed against a franchisor. In Dunkin' Donuts Franchised Restaurants, LLC v. Claudia I, LLC, a...more

Financial Performance Representations

On Tuesday February 11th, the Charlotte Business Franchise Network met on the 15th floor conference room at Nexsen Pruet. The attendees, representing a broad cross section of franchisors, master franchisees, and franchise...more

Focused on Franchise Law - January 2014

FRANCHISOR 101: ITEM 19: MAKE A LIST AND CHECK IT TWICE - Hardware store franchisor, Ace Hardware Corporation, recently prevailed in several fraud claims brought by two former Indiana franchisees in Avon Hardware Co.,...more

Getting down to business: Coalition's review of the franchise sector means potential penalties for franchisors but may also...

Consistent with its pre-election campaign promise, the Coalition Government has announced that this year it will review and amend the Franchising Code of Conduct (Code) to improve protections for small business franchisees....more

Current Legal Alerts for Existing Franchise Groups

Franchisors with class action waivers in their arbitration agreements need not worry that franchisees will be allowed to arbitrate class wide claims following a recent decision by the Supreme Court of the United States...more

Global Connection - November 2013: Entering the U.S. Franchise Market: a Summary of Legal Considerations

Franchisors that have developed successful programs in their home countries will frequently consider expansion opportunities in other countries. In the past, the U.S. was not necessarily an attractive venue in light of the...more

Global Connection - November 2013

In today’s global marketplace, companies need to be informed about foreign laws and practices that impact, or may potentially impact, their businesses in the various regions they serve. This edition of Global Connection...more

States propose revising the "relationship" between franchisors and franchisees

In the '90s, we witnessed efforts by franchisee rights advocates to introduce federal franchise legislation to protect franchisee interests in their relationships with franchisors. In connection with the FTC reviewing and...more

Showdown in Harrisburg

Like a strong marriage, a strong franchise relationship must be built on shared success. In the end, no relationship is likely to work out when one side holds all the cards. Originally published in Franchise Post on...more

FTC and the “Internet of Things”: Franchisor on the hook

Last fall the Federal Trade Commission brought cases against a software developer and rent-to-own stores that secretly monitored people in their homes. The developer provided the stores with software that had a “Detective...more

Franchise Review - Oct 2013: Franchising in the Courts

Apblouin Imports Ltd. v. Global Diaper Services Inc.: Reminder to Franchisors of the Importance of Strict Compliance with Disclosure Requirements - In Apblouin Imports Ltd. v. Global Diaper Services Inc., the Ontario...more

Franchisors Must Act Quickly to Obtain Injunctive Relief on Non-Competition Covenants

A recent case from the United States Court of Appeals for the Eighth Circuit reaffirms the important principle that a franchisor, or any business, that seeks a preliminary injunction to prevent harm from a covenant breach...more

Doing Business in Florida—A Not-So-Personal Endeavor

Out-of-state franchisors seeking to do business in Florida face location-specific challenges, ranging from the selection of potential franchisees and markets to compliance with the Florida Sale of Business Opportunities Act....more

Franchise Review Oct 2013 - Manitoba Becomes the Fourth Province to Enact Private Sector Privacy Law

On September 13, 2013, Manitoba’s Personal Information and Identity Theft Prevention Act (PIITP) received royal assent. Under the authority of the Manitoba Ombudsman’s Office, this legislation, once in force, will govern the...more

Top fashion legal topics – #2 special rules for foreign franchisors in Italy

As part of the series of posts on the most relevant legal matters affecting the fashion industry, we discussed about wearable technologies and privacy while in this post we want to cover the issue of franchising agreements...more

Focused on Franchise Law - September 2013

FRANCHISOR 101: FRANCHISOR NOT LIABLE FOR ACTIONS OF FRANCHISEE'S MANAGERS - Cortland, a former bartender, sued GECP-Sunrise, LLC, a Buffalo Wild Wings franchisee, and its franchisor, Buffalo Wild Wings, Inc., claiming...more

Six Lessons for Franchisors on Avoiding Liability Under Title VII

Restaurant franchisor Buffalo Wild Wings, Inc. (BWW) and Buffalo Wild Wings International Inc. were sued in Arizona's federal district court on charges of Title VII violations....more

Amended Red Flags Rule now in effect – are you still a creditor?

The FTC’s amended definition of “creditor” within the Red Flags Rule is now in effect. The definition is narrower in scope, but under it, a franchisor may still qualify as a “creditor.” For instance, if you use a...more

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