The Eighth Circuit recently applied a novel, broad reading of the Missouri Franchise Act granting franchise protection to distributors which previously would not likely have been considered franchisees....more
On May 1, 2025, the Wage and Hour Division (“WHD”) of the U.S. Department of Labor (“DOL”) issued a Field Assistance Bulletin stepping back from a restrictive independent contractor rule issued under the Biden...more
On May 1, 2025, the Wage and Hour Division (WHD) of the U.S. Department of Labor (DOL) issued a Field Assistance Bulletin stepping back from a restrictive independent contractor rule issued under the Biden administration — a...more
5/13/2025
/ Department of Labor (DOL) ,
Enforcement Actions ,
Enforcement Guidance ,
Federal Labor Laws ,
Franchisors ,
Independent Contractors ,
Manufacturers ,
Misclassification ,
New Guidance ,
Regulatory Reform ,
State Labor Laws ,
Wage and Hour
Effective June 1, 2025, the U.S. Small Business Administration (SBA) will reinstate its Franchise Directory, a critical development for franchise systems and franchisees seeking SBA financing. Originally launched in 2018 and...more
5/7/2025
/ Financial Institutions ,
Franchise Agreements ,
Franchises ,
Government Agencies ,
International Franchise Association (IFA) ,
Lenders ,
Loans ,
New Regulations ,
Regulatory Reform ,
SBA ,
SBA Lending Programs ,
Small Business
In OTG New York, Inc. v. Ottogi America, Inc., OTG was the exclusive regional distributor for food company Ottogi from 2008–23, during which Ottogi shipped inventory to OTG’s New Jersey warehouse. In 2024, Ottogi terminated...more
Decozen Chrysler Jeep Corp. (“Decozen”), a New Jersey-based automobile dealership, filed a lawsuit against Fiat Chrysler Automobiles, LLC (“FCA”), in U.S. District Court for the District of New Jersey alleging that FCA...more
4/11/2025
/ Antitrust Violations ,
Automotive Industry ,
Breach of Contract ,
Contract Disputes ,
Dealerships ,
False Claims Act (FCA) ,
Franchise Agreements ,
Franchise Laws ,
Fraud ,
Manufacturers ,
Misrepresentation ,
Motion to Dismiss ,
Unfair Competition
A key term of any franchise agreement is the venue selection clause as this page has previously explained.
This issue was at the forefront of Convenience Stores Leasing & Management, LLC’s (“CSLM”) August 2024 suit...more
A recent federal court decision in T&T Management, Inc. v. Choice Hotels, Inc. underscores key contractual and operational considerations for franchisors. T&T filed suit in U.S. District Court for the District of Minnesota...more
3/27/2025
/ Acquisitions ,
Breach of Contract ,
Contract Terms ,
Due Diligence ,
Franchise Agreements ,
Franchisee ,
Franchisors ,
Litigation Strategies ,
Misappropriation ,
Motion to Dismiss ,
Tortious Interference ,
Trade Secrets
A recent New Jersey appellate court decision provides valuable guidance for franchisors and their in-house legal teams on structuring and protecting franchise relationships. The court affirmed that a terminated retailer of...more
In May of last year, the Federal Trade Commission (FTC) sought to ban non-compete agreements in most employment contracts. Franchise agreements were an exception. However, before the rule could take effect in September, a...more
2/18/2025
/ Antitrust Provisions ,
Compliance ,
Contract Terms ,
Federal Trade Commission (FTC) ,
Franchise Agreements ,
Franchises ,
Franchisors ,
NASAA ,
Non-Compete Agreements ,
Restrictive Covenants ,
Trade Secrets
With a Republican-controlled Congress and White House, business lobbyists are seizing the opportunity to push for permanent clarity on the issue of joint employment. The International Franchise Association (IFA) is advocating...more
2/6/2025
/ Compliance ,
Department of Labor (DOL) ,
Employment Litigation ,
Employment Policies ,
Fair Labor Standards Act (FLSA) ,
Franchises ,
Joint Employers ,
Labor Reform ,
New Legislation ,
NLRA ,
NLRB
Plaintiffs asserting claims for tortious interference of contracts covered by Puerto Rico’s Dealer’s Contracts Act, commonly known as Law 75, may automatically satisfy one element of such a claim. Law 75 regulates...more
A Washington state appeals court has clarified the scope of Washington’s Franchise Act in Lucid Group USA, Inc. v. State of Washington, Department of Licensing. There, Lucid Group USA, Inc. (“Lucid Group”), the dealer, wanted...more
A supplier may be able to change the terms of a dealer agreement upon renewal under the Alabama Tractor, Lawn and Garden and Light Industrial Equipment Franchise Act (“the Act”)....more
On September 24, 2024, Governor Gavin Newsom signed Senate Bill 919 (“SB 919”), amending California’s Franchise Investment Law (“FIL”) to regulate franchise brokers and franchise sales organizations. The law will take effect...more
Washington-state based franchisees Greg and Gabriela Skistimas brought suit against Hotworx Franchising LLC in the U.S. District Court for the Western District of Washington alleging misleading and unfair practices related to...more
12/3/2024
/ Arbitration ,
Disclosure Requirements ,
Federal Trade Commission (FTC) ,
Franchise Agreements ,
Franchises ,
Franchisors ,
FTC Franchise Rule ,
Louisiana ,
Marketing ,
Misleading Statements ,
Motion to Compel ,
Personal Jurisdiction ,
Unfair or Deceptive Trade Practices ,
Washington
The Superior Court of Connecticut addressed a contractual dispute between a manufacturer of snow removal equipment and its distributor. HP Fairfield, a distributor of snow removal equipment, argued that a manufacturer, CIVES...more
A non-resident of Minnesota can sue a manufacturer for violation of the Minnesota Franchise Act. At the same time, the non-resident’s purchase of the manufacturer’s products at bona fide wholesale prices did not constitute...more
A franchisor may pursue claims for declaratory and injunctive relief for potential trademark infringement against a former prospective franchisee even though the prospect never actually used the marks in question. Grainier...more
9/25/2024
/ Breach of Contract ,
Consumer Fraud ,
Contract Negotiations ,
Counterclaims ,
Declaratory Rulings ,
Enforcement ,
Franchise Disclosure Document ,
Franchisee ,
Franchisors ,
Injunctive Relief ,
Intellectual Property Protection ,
Lanham Act ,
Promissory Estoppel ,
Trademarks ,
Unfair or Deceptive Trade Practices
Tasty Baking Company (“Tasty”), a manufacturer of prepackaged goods, terminated Distefano, Inc. (“Distefano”), Maryland-based owner of a franchise with rights to sell Tasty products in a prescribed area called a “route.”...more
A recent court decision explained the circumstances under which a plaintiff may assert a claim for promissory estoppel and whether a private right of action exists for a certain alleged violation of the Michigan Franchise...more
9/11/2024
/ Advertising ,
Breach of Contract ,
Declaratory Judgments ,
Enforcement ,
Fees ,
Franchise Agreements ,
Franchisee ,
Franchises ,
Investment ,
Popular ,
Promissory Estoppel ,
Royalties
The Federal Trade Commission’s efforts to ban noncompete agreements suffered a serious blow when a federal judge in Texas issued a nationwide injunction blocking the ban’s enforcement. Implementation of the ban could disrupt...more
9/3/2024
/ Federal Bans ,
Federal Trade Commission (FTC) ,
Final Rules ,
FTC Act ,
Non-Compete Agreements ,
Preliminary Injunctions ,
Regulatory Authority ,
Restrictive Covenants ,
Statutory Authority ,
Texas ,
Unfair or Deceptive Trade Practices
A Wisconsin-based supplier of hair products had an agreement with a foreign manufacturer for the exclusive rights to sell products in Wisconsin and Minnesota. The supplier filed suit for violations of the Wisconsin Fair...more
On July 12, 2024, the Federal Trade Commission (FTC) issued a policy statement regarding franchisors’ use of contract provisions such as non-disparagement, goodwill, and confidentiality clauses. This is another example of the...more
In Ice Rak, LLC v. Rita’s Franchise Co., LLC, the Court enforced an arbitration agreement against a non-signatory of the same agreement because courts will consider the significance of the franchisees’ actions and...more