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Franchise Updates

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

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

A Review of Recent Whistleblower Developments

by Foley & Lardner LLP on

...On July 25, 2017, the U.S. Securities and Exchange Commission (SEC) announced it was awarding nearly $2.5 million to a government employee who tipped off the SEC to a company’s wrongdoing. Although the SEC does not...more

“Whole Business” Restaurant Securitizations

by King & Spalding on

In recent years, many of the largest restaurant brands in the United States have utilized securitization techniques to secure financing, specifically in the form of a “whole-business” securitization of franchise royalties and...more

Q&A with Scott and Celia Catlett - Insights From the Restaurant Industry

by King & Spalding on

In this edition of the Franchise & Hospitality newsletter, we open with an interview of Scott and Celia Catlett. Scott is the Vice President and Deputy General Counsel at YUM! Brands, Inc. (the owner of the KFC, Pizza Hut and...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

Across the Board-Episode 7, Brad Davis on the Board's Role in Data Security Oversight

by Thomas Fox on

In this episode I visit with data and IT security expert Brad Davis, CEO of EverSolve, a company specializing in data security. We discuss the role of the Board of Director's in data and IT security in both oversight and...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

Committee Approves Save Local Business Act – Redefining Joint Employer Liability

Wednesday, the U.S. House Committee on Education and the Workforce approved the “Save Local Business Act” (H.R. 3441 – Bryne), legislation that would amend the National Labor Relations Act and the Fair Labor Standards Act to...more

Sonic Latest Food Chain to Suffer Credit Card Breach

After being notified of “unusual activity” on credit cards by its credit card processor, Sonic Drive In has confirmed that it is working with forensic experts and law enforcement on a potential credit card breach. It has not...more

Accidental Franchise = Potential Lawsuits, Fines + Other Penalties

by Lewitt Hackman on

Business owners looking to expand may leave themselves vulnerable to several obvious losses, including those related to finance, brand identity, and customer loyalty. Resources, including exemplary human resources, are...more

What is going on at the NLRB and Why Should You Care?

Why the NLRB is in the News - The National Labor Relations Board (NLRB or the Board), the federal agency responsible for enforcing the National Labor Relations Act (NLRA), was very active during the Obama administration in...more

Franchising in Saudi Arabia: top tips for navigating the Kingdom's regulatory framework

by DLA Piper on

The Kingdom of Saudi Arabia (KSA) continues to present attractive propositions for international franchisors seeking to expand their business operations. Navigating the KSA's complex regulatory framework however is not...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

Federal Court Concludes Franchisor Was NOT Joint Employer

by Fox Rothschild LLP on

Another case has been decided adding to the back and forth in the legal world on the issues of a joint employer relationship of a franchisor and its franchisee and vicarious liability and agency between a franchisor and...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

The Court as a Collection Agency

by Bennett Jones LLP on

Security for judgment is an exceptional remedy only granted in exceptional circumstances. The court prefers to leave debt collection under the auspices of the Civil Enforcement Act. Nevertheless, exceptional circumstances do...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

Before Franchising Your Business, First Consider These Factors

by Lewitt Hackman on

Franchising is so much more than casual burger chains with drive through windows and dollar menus. It’s an industry that incorporates a wealth of blue and white collar services; distributes both high- and low-end products...more

Seventh Circuit Holds Footlong Settlement Falls Short

The Seventh Circuit’s rejection of a class action settlement in a case alleging consumer fraud against Subway for allegedly “shorting” customers of its Footlong sandwiches illustrates the pitfalls of settlements that provide...more

Restoring Common Sense To Determining Who is a Tipped Employee. Case Summary: Marsh v. J Alexander’s

by Buchalter on

In Marsh v. J. Alexander’s, The Ninth Circuit issued a fundamentally important opinion supporting the hospitality industry nationwide. Specifically, the Ninth Circuit rejected the U.S. Department of Labor’s (“DOL”) disastrous...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

NRD Capital Management’s Strategy and Focus: Q&A With Susan Beth

by McGuireWoods LLP on

Susan Beth is chief operating officer of NRD Capital Management, an Atlanta-based private equity firm. Q: How would you describe NRD’s investment focus? Susan Beth: NRD Capital is focused on investing in multi-location,...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

Workplace Relations Risks to Franchisors and Holding Companies Rise

by K&L Gates LLP on

The Federal Parliament this week passed the Fair Work Amendment (Protecting Vulnerable Workers) Act 2017 (the Act), with some last minute amendments agreed to by the Government. This new legislation marks a significant change...more

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