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

Virginia Imposes New Rules for Franchise Agreements

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Key Takeaways: Effective July 1, 2026, Virginia will require Virginia law to govern franchise agreements for Virginia-based operations....more

Tannenbaum Helpern

NASAA’s Model Franchise Broker Act Could Raise the Stakes for Franchise Sales Compliance

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The North American Securities Administrators Association (NASAA) adopted its Model Franchise Broker Registration Act (the “Model Act”) last month. This warrants close attention from any franchisor that relies on third-party...more

IMS Legal Strategies

The Hidden Half: Understanding Consumers Who Aren’t Buying

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In the late 1990s and early 2000s, Blockbuster Video was the dominant competitor in the home video rental market, with a valuation at nearly $3 billion. Unfortunately, the company made a mistake in its market research: it...more

Lathrop GPM

Federal Court Grants in Part and Denies in Part Motion to Dismiss Noncompetition and Misappropriation Claims Brought by Franchisor

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A federal court recently denied a motion to dismiss a franchisor’s claims in Valenta Franchise LLC v. Innerworks LLC, 2026 WL 1453649 (D. Ariz. May 22, 2026)....more

Lathrop GPM

South Dakota Federal Court Allows Race Discrimination Suit to Proceed Against Denny’s Entities Despite Arguments that Separate...

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A federal court in South Dakota denied Denny’s Corporation and Denny’s Inc.’s motion to dismiss a Section 1981 claim after rejecting their argument that the plaintiffs, Damon Whitfield and Hector Madera, had named the wrong...more

Lathrop GPM

Bankruptcy Court Approves Equity Auction and Debtor’s Plan to Assume Hospitality Franchise Agreement Over Lenders’ Objections

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A bankruptcy court approved a hotel debtor’s plan to sell new equity through an auction and to continue operating the hotel under the debtor’s Marriott International, Inc. franchise agreement over lenders’ objections. In re...more

Lathrop GPM

Subway Obtains Judgment Against Franchisee and Attorneys’ Fees in Lease Dispute

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The Appellate Division of the New Jersey Superior Court recently affirmed summary judgment in favor of Subway, holding that a former franchisee was required to reimburse Subway for a settlement payment in a lease dispute,...more

Lathrop GPM

Hotel Franchisors Escape Direct TVPRA Liability but Face Vicarious Liability Claims

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A federal court in Illinois granted in part and denied in part several motions to dismiss TVPRA and Illinois Trafficking Victims Protection Act claims arising from alleged sex trafficking at multiple Chicago-area...more

Lathrop GPM

New Jersey Appellate Court Remands Franchise Worker-Classification Decision Under ABC Test

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The New Jersey Appellate Division remanded a final agency decision which concluded that janitorial franchisees of Coverall North America, Inc. were employees under the New Jersey Unemployment Compensation Law. Coverall N....more

Fisher Phillips

What Retailers Need To Know About The NLRB’s Joint Employer Standard + 4 Compliance Steps To Take Now

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Retail employers frequently operate through complex business arrangements – ranging from franchising models to staffing partnerships and in-store concessions. But, these relationships can unwittingly create potential legal...more

Bricker Graydon Wyatt LLP

Is a Franchise Right for You? What to Know Before You Commit

Are you tired of working for someone else? Are you a closet entrepreneur ready to own your own business? Some people find buying a franchise to be an attractive path to business ownership because you gain access to: (1) an...more

Lewitt Hackman

What Franchisors Need to Know About the Maryland Franchise Reform Act

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In 2026, various states reformed franchise laws to significantly impact the franchisor-franchisee relationship. Recently, Maryland lawmakers approved legislation that follows this trend. On May 12, Gov. Wes Moore signed...more

Holland & Knight LLP

Food Delivery Drivers Misclassification Suit Can Proceed in Court

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In a unanimous decision written by Justice Neil Gorsuch, the U.S. Supreme Court held on May 28, 2026, that a worker who transports goods on an intrastate leg of an interstate journey can be exempt from arbitration under...more

Stark & Stark

When Your Franchisee Files for Bankruptcy: What Every Franchisor Needs to Know Right Now

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The ARC Burger story is a franchisor’s worst-case scenario. ARC Burger LLC, once one of Hardee’s largest franchisees with 77 locations across nine states, filed for Chapter 7 liquidation on April 20, 2026, in the Northern...more

Best Best & Krieger LLP

Local Cable Franchise Transfer Toolkit: Overview of the Transfer Process

A cable franchise is a contract between the cable operator and the franchising authority, such as a city or county. The franchising authority is entitled to full performance of its terms, and can and should demand the benefit...more

Lewitt Hackman

Franchisee 101: Leaving A Light On, For Withheld Funds

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A federal district court in California granted in part a franchisee’s motion to enforce a temporary restraining order (“TRO”) issued by a state court, finding the franchisor engaged in coercive “self-help” measures by...more

Lewitt Hackman

Franchisor 101: No Parent Trap

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A group of franchisees filed a petition to compel arbitration against two franchisor entities and their parent company. The district court found that the franchisees failed to show the parent company was bound by the...more

Goldberg Segalla

DOL Proposes New Joint-Employer Rule Clarifying Joint-Employer Status

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The U.S. Department of Labor (DOL) has issued a proposed rule (Joint-Employer Status Under the Fair Labor Standards Act (FLSA), Family and Medical Leave Act (FMLA), and Migrant and Seasonal Agricultural Worker Protection Act...more

Foley & Lardner LLP

Reseller Agreement Could Create a Franchise Relationships Under New Jersey Law

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On May 5, 2026, in L.E.A.D., Inc. v. C.E. Mendez Foundation, Inc., Civil Action No. 25-14237 (D.N.J. 2026), the United States District Court for the District of New Jersey held that a “Preferred Seller Agreement” between a...more

Whiteford

Employment Law Update: The DOL’s Proposed “Joint-Employer” Rule

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The U.S. Department of Labor (DOL) has a new idea for an old question: who, exactly, is your boss? In a proposed rule unveiled on April 22, 2026, the DOL would set a single “joint-employer” test for the Fair Labor Standards...more

DarrowEverett LLP

Franchisee Lending: Beyond the Standard All-Asset UCC Filing

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In commercial finance, the all-asset lien is the gold standard for lenders. If the borrower defaults, the lender takes the keys and continues operations. However, when the collateral includes a franchised business, the keys...more

Stinson LLP

DOL Proposes New Rule to Standardize Joint Employer Liability for Businesses: What It Means For Your Business

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Employers that rely on contractors, franchisees, or staffing agencies may soon get some additional guidance about when those arrangements could make them "joint employers" under the Fair Labor Standards Act (FLSA), Family and...more

Foley & Lardner LLP

New Jersey's New Independent Contractor Rules: What Franchisors Need to Know

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The ABC Test New Jersey has given businesses like franchisors relying on independent contractor relationships a reason to take a closer look at those relationships. On May 5, 2026, the New Jersey Department of Labor (NJDOL)...more

Offit Kurman

Virginia Reshapes Franchising with Ban on Post-Term Non-Competes

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Franchisors with Virginia locations should prepare to revise their franchise agreements and Virginia-specific disclosure materials. Beginning July 1, 2026, Virginia law will prohibit most post-termination non-compete...more

Miller Nash LLP

NASAA Surprises Franchise Industry by Adopting Model Franchise Broker Registration Act

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After two years of stakeholder input and comment, on May 4, 2026, the North American Securities Administrators Association (“NASAA”) adopted the Model Franchise Broker Registration Act (the “Act”), a model framework for the...more

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