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General Business Franchise

Read need-to-know updates, commentary, and analysis on General Business issues written by leading professionals.

Disclosure Considerations and Tax Reform

by Bracewell LLP on

The impact of tax reform is on the minds of many. While there are currently many unknowns, municipal issuers and conduit borrowers (collectively, “obligated persons”) should consider whether changes in tax law could impact...more

FRANCHISEE 101: All in the Family

by Lewitt Hackman on

Some creativity can help in passing a former franchised business to the next generation, particularly if the franchisor has no part in the franchisee's succession plan. A federal court in Nebraska preliminarily enjoined...more

FRANCHISOR 101: Injunction Bottleneck

by Lewitt Hackman on

A restaurant franchisor, World of Beer Franchising ("WOB"), recently lost an appeal to enforce a post-termination restriction against a franchisee launching a competing business. Both the trial and appellate court ruled...more

Did You Hear? Watch Out For Ohio’s BOPPA!

by Fox Rothschild LLP on

A recent decision in the United States District Court of Arizona (“Court”) could have far-reaching consequences to many franchisors based on the broad-sweeping principles the Court used in its reasoning. In Zounds Hearing...more

Drafting Matters: Do Your Non-Competes Bind The Correct Parties?

by Fox Rothschild LLP on

A federal court in Colorado recently upheld a franchisor’s non-competition provision despite that state’s strong public policy against non-competes. The franchisor prevailed due to its thoughtful contract drafting and ability...more

Belgian Retail Newsletter

by McGuireWoods LLP on

European Parliament wants harmonized franchising legislation 7 NOVEMBER 2017 - In September 2017, the European Parliament passed a resolution on the functioning of franchising in the European retail sector. This...more

FRANCHISOR 101: Arbitr-“all”

by Lewitt Hackman on

A federal court in New Jersey granted a franchisor's motion to compel arbitration of disputes involving seven frozen yogurt franchises, even though the claims were subject to different arbitration provisions in different...more

Update: President Trump Sticks a Knife in the CFPB’s Arbitration Rule

Key Takeaway: For now, pre-dispute arbitration clauses with class action waivers are safe. On November 1, President Trump abrogated a Consumer Financial Protection Bureau (CFPB) rule that would have given consumers the...more

Successor Liability? Double-Check Those Assets!

by Fox Rothschild LLP on

The intersection of franchise law and general corporate law is extensive. A recent decision in the Michigan Court of Appeals (Court) highlights the importance of thoroughly understanding and considering the ramifications of...more

Does Arbitration Make Sense For Franchisors? A Litigator’s Perspective

by Mulcahy LLP on

Let’s face it; arbitration is not always the quicker, cheaper forum for parties to resolve their differences. Although arbitration does have the potential to be more economical and efficient than court, in practice, these...more

Implied Covenant Of Good Faith Does Not Trump Express Terms

by Fox Rothschild LLP on

The U.S. Court of Appeals for the Third Circuit upheld a New Jersey district court’s decision that 7-Eleven did not violate the New Jersey Franchise Practices Act (NJFPA) after the franchisor terminated a New Jersey...more

Workplace Now: The “Localization” of Employment Law – What you Don’t Know Can Hurt

by LeClairRyan on

It is no secret these days that many workforces, particularly over the last five years, are now subject to numerous state and municipal laws that seek to shape and regulate numerous areas of the workplace (many of which are...more

Cybersecurity: New Front for Attacks on Franchise Model

by Dorsey & Whitney LLP on

Much has been written on the growing risks of data breaches and other cyberattacks, especially after the massive security breach at Equifax in September 2017. Recent cases holding franchisors liable for franchisees’ data...more

Is a Series LLC Right for Your Business?

by Mintz Levin on

The Series limited liability company (the “Series LLC”) is more nuanced than an ordinary limited liability company, and for the right user, it provides flexibility that will streamline administration better than other...more

Telephone Access Might Be Valid Alternative to Accessible Website, But Court Needs More

by Seyfarth Shaw LLP on

Seyfarth Synopsis: In denying Dave & Buster’s motion to dismiss and for summary judgment, a federal judge said that telephonic access might be an alternative to having an accessible website, but cannot decide until the...more

Minnesota Corporate Franchise Tax Change for Foreign Disregarded Entities

by Stinson Leonard Street on

The Minnesota Department of Revenue issued its position on foreign disregarded entities of corporate taxpayers on October 4, 2017. In response to the Minnesota Supreme Court decision filed August 2, 2017 in Ashland Inc. v....more

When a Warehouse Is a 'Place of Business' Under the New Jersey Franchise Practices Act

by Pepper Hamilton LLP on

A recent federal court opinion overlooked a plain-language requirement of the “place of business” element of a claim under the New Jersey Franchise Practices Act (NJFPA), N.J.S.A. § 56:10-1 et seq., potentially expanding the...more

FRANCHISOR 101: A Clean Sweep

by Lewitt Hackman on

A federal court recently held that under California law, cleaning services franchisor Jan-Pro Franchising International (Jan-Pro) was not the employer of its unit franchisees. The franchisee plaintiffs failed to show that...more

FRANCHISEE 101: Upgrade Your Metal

by Lewitt Hackman on

A federal court in New York denied a franchisee's motion for preliminary injunction that would have prevented its franchisor Metal Supermarkets Franchising America (MSFA) from installing technology upgrades in its stores....more

Franchisor's Racial Animus Is Irrelevant in Determining Legality of Franchise Termination Under NJ Franchise Practices Act

by Pepper Hamilton LLP on

In a recent win for franchisor 7-Eleven, Inc., the U.S. Court of Appeals for the Third Circuit upheld a New Jersey district court’s ruling that 7-Eleven properly terminated its franchise agreements for cause based on the...more

Pass the Beer: Craft Brew Distribution Law in the U.S.

by Lewitt Hackman on

How do Americans get their stouts, ales, pilsners and porters? Beer distribution, no matter the variety, is funneled through a highly regulated three-tier system: brewers at the top, distributors take their cut in the middle,...more

California Courts Continue to Void Forum Selection Clauses in Franchise Agreements Under a Questionable Mutual Assent Theory

by Mulcahy LLP on

The Ninth Circuit and California Court of Appeal generally continue to render forum selection clauses in franchise agreements unenforceable. This has been a hot topic among franchise litigators and on our blog....more

Franchise Litigation Rising Over Dietary Considerations

by Lewitt Hackman on

Rising concerns over food sourcing and preparation is leading to more and more litigation for restaurants and franchises. Most of the lawsuits claim discrimination, which makes sense as many dietary strictures are rooted...more

FRANCHISEE 101: Squeezed at the Pump

by Lewitt Hackman on

Most dealership and franchise agreements require the franchisor's prior written consent to the transfer of a business from one franchisee to another. The new franchisee is often required to sign the franchisor's then-current...more

Drafting Matters: When Non-Competes And Renewal Provisions Collide

by Fox Rothschild LLP on

If a franchisor waives the non-compete provision in its current franchise agreement, can it enforce a non-compete when the franchise agreement is renewed? According to a recent decision by the 9th Circuit Court of Appeals,...more

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