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Franchise Updates

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

McDonald’s & The NLRB to Settle a Nearly Four-Year Battle Involving Joint-Employer Status

by Franczek Radelet P.C. on

On March 19, 2018, McDonald’s reached a proposed settlement with the National Labor Relations Board (the “Board”) to resolve the outstanding litigation concerning alleged labor law violations by McDonald’s franchisees. ...more

Malaysia case provides guidance on franchise law

by Dentons on

A recent interlocutory case in Malaysia, (the “La Kaffa decision”) has provided some helpful guidance on when an interlocutory injunction will be granted to restrain a franchisee from operating a competing business after...more

California Courts Narrow the New Motor Vehicle Board’s Jurisdiction to Hear Dealer Protests

by Mulcahy LLP on

The California Legislature established the New Motor Vehicle Board (the “Board”). The mandate of the Board is to enforce the regulatory scheme set forth in the California Vehicle Code and Civil Code meant to regulate the...more

Proving A Franchisor’s Irreparable Injury To Obtain A Preliminary Injunction

by Mulcahy LLP on

When a franchisor grants a franchise, it licenses, among other things, its trade name and business operating system. By doing this, the franchisor trusts its franchisees, area representatives, and sub-franchisors with its...more

Your Daily Dose of Financial News

by Robins Kaplan LLP on

The DOJ is expanding its Wells Fargo sales probe into the bank’s wealth management division, a troubling move for an organization still trying to right the ship in its retail-banking unit where the sham-account scandal...more

Orrick's Financial Industry Week In Review

Looking Out for Main Street: SEC Focuses on Retail, Cybersecurity and Cryptocurrency - The Commissioners and senior officials of the Securities and Exchange Commission ("SEC" or "Commission") addressed the public on...more

This Week in FCPA-Episode 93 - the Hell Hath No Fury edition

by Thomas Fox on

1. Wells Fargo is having its soul investigated by actual nuns. 2. BSRG goes into receivership. 3. Bill Coffin continues his string of great posts. This week he says your data breach nightmare is only going to get worse....more

NLRB Vacates Hy-Brand Decision

by Steptoe & Johnson PLLC on

On February 26, 2018, the National Labor Relations Board (“NLRB”) issued an Order vacating its decision in Hy-Brand Industrial Contractors, Ltd. and Brandt Construction Co., 365 NLRB No. 156 (2017) (“Hy-Brand”). The decision...more

FRANCHISEE 101: Til Expiration Do Us Part

by Lewitt Hackman on

Though an individual owner and operator of a formerly franchised Church's Chicken restaurant in Texas was not a signer of the franchise agreement, a district court ruled the individual was subject to the agreement's...more

What Types Of Franchise Sellers Must Register In Washington?

by Fox Rothschild LLP on

Michelle Webster, a franchise financial legal examiner with the State of Washington Department of Financial Institutions, took a few minutes at the start of the ABA Forum on Franchising’s Annual Meeting seminar on disclosures...more

Sign Me Up! How To Waive The Notary Requirement For International Franchisors

by Fox Rothschild LLP on

International franchisors inbound into the U.S. face a complex set of business decisions and legal regulations. Even seemingly simple tasks–like properly executing a franchise registration application–can become a...more

Whiplash on the Browning-Ferris Wheel: NLRB Vacates Recent Hy-Brand Decision and Reverts to Obama-Era Joint Employer Standard

by Faegre Baker Daniels on

If you are experiencing whiplash from the National Labor Relations Board’s wild ride of a year, you are not alone. In a surprising turn of events, on February 26, 2018, the NLRB vacated its decision in Hy-Brand Industrial...more

FRANCHISOR 101: Finger Lickin’ Restrictions

by Lewitt Hackman on

Franchise agreements give franchisors nearly absolute, unfettered discretion to control advertising of their brands. Franchisors need not regard prior course of dealings with franchisees. An Illinois federal court dismissed a...more

National Labor Relations Board Vacates Hy-Brand and Returns to Browning-Ferris Joint Employer Standard

by Franczek Radelet P.C. on

Yesterday, the National Labor Relations Board issued an Order abruptly vacating its decision in Hy-Brand Industrial Contractors. In Hy-Brand, issued in December, the Board overturned the controversial joint employer standards...more

NLRB Vacates Hy-Brand Decision And Restores (For Now) Its Broad Browning-Ferris Joint Employer Test

by Seyfarth Shaw LLP on

Yesterday, the National Labor Relations Board (NLRB or Board) issued an Order vacating the Board’s decision in Hy-Brand Industrial Contractors, Ltd. and Brandt Construction Co., 365 NLRB No. 156 (2017), in light of the...more

Déjà Vu All Over Again: SEC Provides Cybersecurity Guidance

The U.S. Securities and Exchange Commission has issued guidance on cybersecurity disclosure. Companies must establish and maintain appropriate disclosure controls and procedures to make accurate and timely disclosures of...more

Beer Franchise Law: Can Brewers and Distributors Craft a Resolution?

by Bowditch & Dewey on

Three bills aimed at reforming Massachusetts’ controversial beer franchise law failed to make it out of committee this month, frustrating the efforts of brewers and beer distributors alike. Both sides will now go back to the...more

Employees Again Sue Jimmy John's Based on Hiring Restriction

A few years ago, the Jimmy John’s sandwich restaurant chain ran into problems over noncompetition agreements entered into with hourly workers at its franchisees’ stores. Several state attorneys general contended that...more

Your Daily Dose of Financial News

by Robins Kaplan LLP on

Chipotle and founder Steve Ells—which built an empire on the idea of offering a healthier, more authentic Mexican experience than its Tex-Mex fast food rivals—are turning ironically enough to Taco Bell’s CEO Brian Niccol to...more

Repurposing Retail Properties in the Age of E-commerce

by Foley & Lardner LLP on

The question of whether aging commercial properties can find new life and cash flow is one that has haunted the industry since the Great Recession began and continued through 2017 when the “wall of maturities” was expected to...more

Failure to Follow Franchising Disclosure Laws Isn't Necessarily Unfair Trade Practice

by Baker Donelson on

The recent Cooper v. Primary Care Solutions considered, among other things, franchising law in the context of the Louisiana Unfair Trade Practice Act (LUTPA), which punishes unfair and deceitful conduct in the conduct of...more

FRANCHISEE 101: Out of Time, Out of Gas

by Lewitt Hackman on

A California federal judge held that breach of contract claims brought by franchisees of two ARCO-branded gas stations against their franchisor BP West Coast Products were untimely, and declined to adopt the franchisees'...more

Franchisor 101: Copycat Restaurant Shutdown

by Lewitt Hackman on

A registered trademark is a valuable corporate asset and can be a significant part of a company's worth. A franchisor has an affirmative legal duty to police use of its mark by licensed franchisees and also third-party...more

A Review of Recent Whistleblower Developments

by Foley & Lardner LLP on

Whistleblower Developments is a periodic report covering significant cases, decisions, proposals, and legislation related to whistleblower statutes and how they may impact your business. Recent developments...more

Federal Court Reinforces That Franchisors Should Control Advertising to Ensure Uniformity

by Pepper Hamilton LLP on

An Illinois federal judge recently found that a franchisor has the absolute right to control its franchisees’ advertising of the products and services offered under a franchise. Lokhandwala v. KFC Corp., No. 17-cv-6394 (N.D....more

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