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General Business Franchise

Read need-to-know updates, commentary, and analysis on General Business 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

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

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

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

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

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

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

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

Franchise Litigation Rising Over Dietary Considerations

by Lewitt Hackman on

Rising concerns over food sourcing and preparation is leading to more and more litigation for restaurants and franchises. Most of the lawsuits claim discrimination, which makes sense as many dietary strictures are rooted...more

FRANCHISEE 101: Squeezed at the Pump

by Lewitt Hackman on

Most dealership and franchise agreements require the franchisor's prior written consent to the transfer of a business from one franchisee to another. The new franchisee is often required to sign the franchisor's then-current...more

Drafting Matters: When Non-Competes And Renewal Provisions Collide

by Fox Rothschild LLP on

If a franchisor waives the non-compete provision in its current franchise agreement, can it enforce a non-compete when the franchise agreement is renewed? According to a recent decision by the 9th Circuit Court of Appeals,...more

FRANCHISOR 101: Selective Enforcement of Franchise Agreement Provisions

by Lewitt Hackman on

A franchisor's ability to set renewal terms can bind franchisees to terms in a later franchise agreement before the renewal agreement even exists. In a recent case, a franchisor could enforce a hypothetical non-compete...more

Navigating The Private Right Of Action Under The California Franchise Investment Law

by Mulcahy LLP on

The California Franchise Investment Law (“CFIL”) regulates both the sale and disclosure of franchise opportunities within the state. The law was enacted to “provide each prospective franchisee with the information necessary...more

License to Sue? Court Rules That a Motor Vehicle Dealer Does Not Need a Dealer’s License to Bring a Statutory Claim for...

by Mulcahy LLP on

California’s motor vehicle code allows dealers to bring suit against manufacturers for terminating the dealer without good cause. See California Vehicle Code §§ 11713.3, 3060, 3061 and 3066. As currently written, the...more

7-Eleven versus the Town of Babylon: A Big Gulp of Red Tape

by Farrell Fritz, P.C. on

On July 7, 2017, Judge William G. Ford issued a decision in the case Matter of 7-Eleven, Inc. v. Town of Babylon, Supreme Court, Suffolk County, 2017 NY Slip Op 31467(U) , in which the Town was excoriated for its mishandling...more

Food & Beverage Litigation Update | July 2017#3

EU to Issue Guidelines on Discriminatory Food Distribution - European Commission President Jean-Claude Juncker has reportedly indicated the EU will issue guidelines discouraging companies from selling apparently identical...more

FRANCHISEE 101: Cold Brew Remedy

by Lewitt Hackman on

Beer distributors can be on common footing with their franchisee counterparts in bargaining with brewers or suppliers. Depending on the jurisdiction, distributors may have protection through beer distribution statutes...more

New guidance for lawyers advising businesses on human rights risks

by DLA Piper on

On 17 July 2017, the International Bar Association Legal Policy and Research Unit (LPRU) released a Handbook for Lawyers on Business and Human Rights to provide guidance for business lawyers and their corporate clients on how...more

So You Say You Want a Revolution? Franchises Evolve as Retail Declines

by Lewitt Hackman on

You’ve seen the news: retailers are struggling. Traditional anchor stores like Macy’s and Sears are closing up shop, creating a domino effect of fiscal death for shopping malls across the country. The Los Angeles Times...more

Tennessee Business Court Requires Arbitration of Franchise Agreement Disputes Notwithstanding Provision for Application of...

by Butler Snow LLP on

The Tennessee Business Court, in For Senior Help, LLC v. Medex Patient Transport, LLC, Case No. 16-0553-BC, decided January 5, 2017, stayed litigation and compelled arbitration of the disputes arising under the parties’...more

Franchising – The route to international expansion?

by Dentons on

Franchising is a proven route to the successful international expansion of businesses in various sectors from fitness studios and restaurants to high end fashion and beauty. Annually it accounts for turnover of USD$300...more

Trimming the Fat: Restaurant Menu Labeling Rule Under Further Review

by Lewitt Hackman on

In 2010 as part of the Patient Protection and Affordable Care Act a/k/a “Obamacare”, the federal government set provisions mandating restaurant chains provide nutrition information for menu items. The U.S. Food and Drug...more

Minority Shareholders’ Derivative Suit Foiled by Voiding of Corporation’s Charter for Nonpayment of Taxes

by Farrell Fritz, P.C. on

A business’s failure to pay state taxes can be a problem if the entity later wants to bring a lawsuit, or its non-controlling owners want to sue on the entity’s behalf....more

Sale Of A Contract: Capital Gain Or Ordinary Income?

by Farrell Fritz, P.C. on

Maximize Capital Gain- In the sale of a business, it is the goal of every business owner and his tax adviser to minimize the amount of gain realized and, to the extent gain is realized, to maximize the amount that is...more

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