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Franchise Intellectual Property

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

Littler

Thumb on the Scale: Tennessee Enacts New Reasonableness Presumptions for Noncompete Agreements While Outlawing Covenants for...

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Tennessee Governor Bill Lee signed House Bill 1034 on May 7, 2026, enacting Tennessee’s first noncompete law outside the healthcare industry. The law becomes effective July 1, 2026, with a strictly prospective application....more

Saul Ewing LLP

New Guidance From the Federal Government About What Constitutes a Joint Employer

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The consequences of being deemed a “joint employer” are significant. It can mean that one company is liable to or for the employees of another company in several contexts, including compliance with wage and hour, safety and...more

Lathrop GPM

Virginia Governor Signs Law Banning Post-Term Non-Compete Provisions in New Franchise Agreements - May 2026

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On April 13, 2026, Virginia Governor Abigail Spanberger signed HB 69/SB 240 into law, which amends the Virginia Retail Franchising Act. This law bans the offer or sale of a franchise in Virginia containing a post-term...more

Lathrop GPM

California Federal Court Orders Hospitality Franchisor to Show Cause Regarding Civil Contempt for Failure to Release Proceeds

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A federal court in California granted in part a franchisee’s motion to enforce a temporary restraining order (TRO) and ordered a defendant franchisor to show cause why it should not be held in civil contempt for failing to...more

Lathrop GPM

Florida Federal Court Dismisses TVPRA Claim Against Hotel Franchisor

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A Florida federal court recently dismissed a claim alleging Wyndham Hotels & Resorts, franchisor of the Days Inn brand, violated the Trafficking Victims Protection Reauthorization Act (TVPRA). Weiner v. Wyndham Hotels &...more

Lathrop GPM

Illinois Resident’s Use of Hilton App Doesn’t Establish Personal Jurisdiction over Hilton Worldwide in Illinois

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An Illinois federal court recently dismissed a slip-and-fall plaintiff’s negligence claims against Hilton Worldwide that stemmed from a fall at a Nebraska Hampton Inn. Roeber v. Hilton Worldwide Holdings., Inc., 2026 WL...more

Lathrop GPM

Missouri Federal Court Grants Summary Judgment to Franchisor In Dispute Over Termination for Confidentiality Violations

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A federal court in Missouri granted H&R Block Tax Services, LLC’s motion for summary judgment, holding that H&R Block properly terminated Colorado Tax Specialists Co.’s franchise agreements after Colorado Tax disclosed...more

Lathrop GPM

Nebraska Federal Court Dismisses Franchisees’ Suit Alleging Early-Renewal Rights

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A Nebraska federal court granted franchisor Home Instead, Inc.’s motion to dismiss nineteen Home Instead franchisees’ claims for breach of a 2024 Settlement Agreement. WJM Home Care, LLC v. Home Instead, Inc., 2026 WL 904279...more

UB Greensfelder LLP

NASAA Adopts Model Act Targeting Franchise Broker Regulation

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On May 4, 2026, the North American Securities Administrators Association (NASAA) adopted the Model Franchise Broker Registration Act (the Model Act), a nonbinding framework intended to address regulatory gaps in the oversight...more

Lathrop GPM

North Carolina Superior Court Permits Advertising Fee Misappropriation Claims to Proceed Against Franchisor but Not Guarantors

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In a dispute over alleged misappropriation of systemwide advertising funds, a North Carolina superior court permitted franchisees to proceed with claims against their franchisor but dismissed claims against the franchisor’s...more

Bass, Berry & Sims PLC

Tennessee Joins List of States Rewriting Rules on Non-Compete Agreements: What Employers Need to Know

Restrictive covenant legislation is growing in popularity across the United States. Tennessee, a state long regarded as business-friendly, is among the list of states creating statutory definitions of what is reasonable for...more

Lewitt Hackman

Stronger Franchisee Protections Emerging in 2026 State Laws

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It appears that franchisors will remain targets of state governments in 2026. Although a franchise system may not call a state with new legislation its home, franchisors and franchisees should stay informed about the...more

Foley & Lardner LLP

A New DOL Joint Employment Rule? What Franchisors Need to Know

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On April 22, 2026, the U.S. Department of Labor’s Wage and Hour Division published a proposed rule to establish a single, nationwide standard for determining joint employer status under the Fair Labor Standards Act (“FLSA”),...more

Tannenbaum Helpern

Virginia’s New Franchise Noncompete Ban: What Franchisors Should Do Now

Tannenbaum Helpern on

Virginia quietly made a big franchise law move this spring. On April 13, 2026, the state’s governor signed House Bill 69 and Senate Bill 240, amending Virginia’s Retail Franchising Act (Va. Code §§ 13.1-557 et seq.)....more

Offit Kurman

Maryland Franchise Reform Act Passes

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The Maryland General Assembly has enacted, by overwhelming majorities, the Franchise Reform Act (Senate Bill 415 & House Bill 730), marking the first significant changes to the Maryland Franchise Registration & Disclosure Law...more

Akin Gump Strauss Hauer & Feld LLP

DOL Proposes New Joint Employer Rule, Seeking to Clarify Liability Standards Under Federal Wage and Hour Laws

Since July 2021, when the DOL rescinded its 2020 joint employer rule following a successful legal challenge, there has been no federal rule addressing joint employer status under the FLSA. In its absence, the DOL has been...more

DLA Piper

US Department of Labor proposes rule clarifying joint employer status under federal wage and hour laws

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On April 22, 2026, the United States Department of Labor’s Wage and Hour Division (Department) announced a Notice of Proposed Rulemaking addressing the determination of joint employer status under the Fair Labor Standards...more

Lewitt Hackman

Franchisee 101: Diversity Precedent

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A federal district court in New York recently dismissed a case for lack of diversity subject matter jurisdiction where the franchisee plaintiff and franchisor defendant were both foreign entities, even though they both...more

Pillsbury Winthrop Shaw Pittman LLP

U.S. Department of Labor Proposes Joint Employer Rule Changes

The DOL has issued a NPRM to clarify and standardize when multiple employers may be deemed “joint employers” under the Fair Labor Standards Act (FLSA), Family and Medical Leave Act (FMLA) and Migrant and Seasonal Agricultural...more

Bodman

DOL Issues Proposed Rule on Joint Employer Liability Under FLSA, FMLA, and MSPA

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On April 22, 2026, the U.S. Department of Labor (DOL) issued a Notice of Proposed Rulemaking to clarify the standard for determining joint employer status under the Fair Labor Standards Act (FLSA), the Family and Medical...more

Lewitt Hackman

Franchisor 101: Claim Preclusion

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The federal district court in North Dakota granted a franchisee’s motion to dismiss a franchisor’s complaint for failure to state a claim and its motion for sanctions, finding the franchisor improperly attempted to relitigate...more

Lewitt Hackman

New Virginia Law Bans Non-Competes in Franchise Agreements

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On April 13, Gov. Abigail Spanberger signed House Bill 69 and its companion Senate Bill 240 into law. The new legislation takes effect on July 1 and makes two major changes to the Virginia Retail Franchising Act. The Act...more

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