On May 16, 2023, the Minnesota legislature adopted a revision to the Minnesota Statutes (§181.99) which prohibits restrictive franchise agreements commonly called “no-poach” or “non-solicitation” agreements. Specifically,...more
The PRO Act would do serious, and perhaps mortal, damage to the franchise industry. It would make sweeping changes to the National Labor Relations Act (NLRA), the Labor Management Relations Act (LMRA), and the Labor...more
Congress passed a wide-ranging COVID-19 relief package on December 22, 2020, that provides over $900 billion in aid to individuals and businesses. President Trump has now signed the relief bill, called the...more
At 4 p.m. today, Pennsylvania Governor Tom Wolf (who himself has tested positive for COVID) and Secretary of Health Rachel Levine issued new, “limited-time”, targeted COVID mitigation orders. The orders hit the franchise...more
A recession is coming, if it is not already here. But this won’t be a recession like 2008. Back then, the banks threw you under the bus so that they could survive. Today, they are stronger. More importantly, they know they...more
The wait is over: This morning the NLRB announced that it will issue its final rule governing joint-employer status tomorrow, February 26, 2020. According to the NLRB itself, the “final rule restores the joint-employer...more
A wage and hour case before the Ninth Circuit Court of Appeals, Vazquez v. Jan-Pro Franchising International, is the latest front in the joint employer battle. In Vazquez, unit franchisees of a janitorial service system...more
Last time we asked, given the high number of restaurant concept bankruptcies and money sloshing around in the sector, is there still more upside than downside in the restaurant franchising sector? We can find the answer by...more
Imagine operating a single restaurant. The food keeps bringing them in, and prices are relatively stable. Consumer confidence is high, unemployment low, discretionary income rising, and people are going out more. Now multiply...more
To paraphrase Benjamin Franklin, “Those who fail to plan, plan to fail.” That is true in any business, but particularly so in franchising. Planning is more important in franchising because franchising leverages a...more
Does the EU General Data Protection Regulation (GDPR) apply to my brand? This is a question with which many U.S.-based franchisors have been grappling since the GDPR took effect on May 25th. Six months later, the European...more
In our last post, we examined some of the types of risk that come with growth. In this post, we discuss some forms of diligence that may be used to better manage that risk....more
Growth can be expensive, but it is always more expensive when the expansion is taken without risk assessment. Whether domestic or foreign, many risks can be reduced or avoided by proper consideration of differences between...more
Renewed Efforts to End No Poaching Provisions-
Franchisors need to review their franchise agreements and take immediate action in response to the recent onslaught of legal action over “naked no poaching” provisions in...more
The Fox Rothschild team of Megan Center and Alex Radus recently gave a presentation at the International Franchise Expo in New York City on the “Top Ten Provisions to ‘Never’ Negotiate in a Franchise Agreement.” A summary of...more
We, Megan Center and Alex Radus, recently gave a presentation at the International Franchise Expo in New York City on the “Top Ten Provisions to ‘Never’ Negotiate in a Franchise Agreement” and want to share the highlights of...more
Change is inevitable in a franchise system, and disclosure then becomes a concern. Disclosure may be a business issue for the existing franchisees, but it becomes a legal issue in the offer and sale of franchises. The...more
Restaurant operators and their financiers often need to predict the future. The operators, mostly from franchised brands, need to adapt to changing tastes and fashion. The financiers need to assess risk before making...more