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Fox Rothschild LLP

Hot Topics & Higher Prices: Tariffs Take the Stage at IFA Legal Symposium

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Tariffs may seem like a headline reserved for economists and politicians, but at last week’s International Franchise Association (IFA) Legal Symposium in Washington D.C., they were front and center in nearly every room. From...more

Polsinelli

Landmark Texas Supreme Court Case Finds No “Direct Liability” for Franchisor Arising Out of Franchisee Employee’s Actions

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On May 2, 2025, the Texas Supreme Court reversed a Texas Court of Appeals’ decision that had affirmed a jury’s verdict finding a franchisor directly liable to the customer of a franchisee for actions undertaken by the...more

Foley & Lardner LLP

DOL Alters Enforcement Position on Independent Contractors: What Does It Mean For Manufacturers and Franchisors?

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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

Ogletree, Deakins, Nash, Smoak & Stewart,...

New York State Senate Bill Would Make Fast-Food Franchisors Jointly and Severally Liable for Certain Labor Law Violations

On April 8, 2025, the New York State Legislature took up Senate Bill S7289, which, if enacted, would amend the New York Labor Law (NYLL) by adding a new article 35-A, otherwise known as the “New York State Fast Food...more

Foley & Lardner LLP

DOL Alters Enforcement Position on Independent Contractors

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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

Akerman LLP

SBA Franchise Directory Returns June 2025 with New Certification Rules

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The U.S. Small Business Administration confirmed this week that it will reinstate the SBA Franchise Directory on June 1, 2025, reversing the 2023 decision to sunset the program. The Directory has long been the primary...more

Whiteford

Client Alert: SBA Issues SOP 50 10 8: Key Changes Impacting SBA 7(a) Lending

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On April 22, 2025, the U.S. Small Business Administration (“SBA”) released Information Notice 5000-866746, announcing the issuance of SOP 50 10 8 (“SOP”) (found here), which introduces significant changes to the SBA 7(a) loan...more

Foley & Lardner LLP

SBA Franchise Directory Reinstated, Easing Loan Access for Franchisees

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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

Lathrop GPM

Ohio Federal Court Dismisses Franchisees’ Class Action Against Luxottica

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A federal court in Ohio dismissed a putative class action brought by franchisee-eyewear sellers against their franchisor, Luxottica of America. Brave Optical, Inc. v. Luxottica of Am. Inc., 2025 WL 962827 (S.D. Ohio Mar. 31,...more

Lathrop GPM

California Federal Court Dismisses Putative Class Action Against Dunkin’ Defendants for Lack of Jurisdiction

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A federal court in California recently dismissed a putative class action by two Dunkin’ customers alleging customers were illegally charged a “dine-in fee, or other hidden fee.” Taferner v. Inspire Brands, Inc., 2025 WL...more

Foley & Lardner LLP

Actions Speak Louder Than Words: A Franchise Relationship Can Exist in Spite of a Contract’s Express Terms to the Contrary

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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

Lathrop GPM

Virginia Federal Court Dismisses Franchise Employee’s Discrimination Claims Against McDonald’s

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A federal court in Virginia recently granted McDonald’s USA, LLC’s motion to dismiss a former franchise employee’s Title VII and Virginia Human Rights Act claims. Edmonds v. McDonald’s USA, LLC, 2025 WL 1066193 (W.D. Va. Apr....more

Lathrop GPM

California Federal Court Dismisses ADA and California Unruh Act Claims Against Franchisor

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A federal court in California granted Dunkin’ Donuts’ motion to dismiss claims by customers alleging that a surcharge for non-dairy substitutes in beverages discriminated against customers with lactose intolerance and milk...more

Lathrop GPM

New York Federal Court Denies Summary Judgment on Franchise Sale Fraudulent Misrepresentation Claim

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A federal court in New York recently denied a franchisor’s motion for summary judgment on a franchisee’s claims for fraudulent misrepresentation. Cmty. Care Companions, Inc. v. Interim Healthcare, Inc., 2025 WL 929407...more

Lathrop GPM

Citing California Franchise Relations Act, California Federal Court Rejects Franchisor’s Attempt to Dismiss Case

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A federal court in California recently denied a franchisor’s motion to dismiss litigation, holding that a franchise agreement provision requiring the parties to mediate in Texas prior to instituting litigation or arbitration...more

Lathrop GPM

Massachusetts Federal Court Grants Preliminary Injunction for Noncompete Violations, Denies Injunction for Trademark Infringement

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A federal court in Massachusetts recently granted, in part, a Motion for Preliminary Injunction as to enforcement of franchise agreement noncompete covenants but denied the motion as to claims of trademark infringement,...more

Lewitt Hackman

Franchisee 101: When the Competition Leaks

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A Massachusetts federal court granted a franchisor’s request to enforce the franchise agreement’s post-termination non-compete provision against a terminated franchisee....more

Lewitt Hackman

Franchisor 101: Mowing and Blowing Past Mediation

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A California federal court denied a franchisor’s motion to dismiss a franchisee’s complaint claiming the franchisee failed to first mediate the dispute before filing an action as required under the franchise agreement....more

Fox Rothschild LLP

Get Ready! SBA Franchise Directory Returning on June 1st

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A positive development for franchise systems seeking to streamline the SBA loan approval process for their franchisees is coming this summer. The new version of the SBA Loan Origination Policies and Procedures for Lender and...more

Fox Rothschild LLP

Big Deals and Bigger Takeaways: The Future of Platform Franchisors

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Today is Day 1 of Franchise Times Dealmakers Week. The webinar series is serving up a week of can’t-miss conversations with top franchise leaders who are building platforms, scaling brands, and reshaping the future of...more

Blank Rome LLP

Gains on Sales of Franchises Held Nonbusiness Income in Arkansas

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Consistent with the decisions in several other states interpreting the Uniform Division of Income for Tax Purposes Act’s (“UDIPTA”) definition of nonbusiness income, an Arkansas Circuit Court concluded that gains from the...more

Foley & Lardner LLP

Court Relies on Contractual Terms to Dismiss Dealership Suit Against Auto Manufacturer

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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

Bradley Arant Boult Cummings LLP

Trump’s Pick for Chief Legal Officer May Signal More Changes for DOL

This week President Donald Trump nominated attorney Jonathan Berry to be the next solicitor of the Department of Labor (DOL). Berry worked in the department during the first Trump administration, and he was the sole author of...more

Lewitt Hackman

Franchisee 101: Salon Franchisee Snipped, Confirmed, and Enjoined

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A federal district court in Tennessee granted a motion for a default judgment in the franchisor’s favor against its former franchisee requiring the franchisee to pay damages and comply with the post-termination obligations...more

Foley & Lardner LLP

Permissive Forum Selection Clause Is Not Enforceable in Franchisor’s Suit Against Franchisee

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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

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