News & Analysis as of

Franchise Agreements

Franchising Update - May 2018

by K&L Gates LLP on

We are expecting 2018 to continue to be busy in the franchising industry. In a release on 23 March 2018, the ACCC announced its priorities for 2018 including "a particular focus on Franchising Code of Conduct issues involving...more

Pure Hearts and Franchise Termination: The Role of Good Faith Under State Relationship Laws

by Pepper Hamilton LLP on

In a recent decision, the United States Court of Appeals for the Third Circuit affirmed the dismissal of a franchisee’s claim that the franchisor’s termination decision violated the New Jersey Franchise Practices Act (NJFPA)...more

Broad Provisions In Franchise Agreement: How Far Is Too Far?

by Fox Rothschild LLP on

The fight against joint employment of franchisors and franchisees took a small hit when the Western District of Pennsylvania (“Court”) chose to allow a franchisee’s employee’s suit to proceed. In Harris v. Midas, et. al., the...more

Franchisor Bankruptcy Case Dismissed as a Bad Faith Filing

by Foley & Lardner LLP on

The United States Bankruptcy Court for the District of Delaware recently issued an opinion discussing the tension between using bankruptcy as a legitimate tool to maximize value versus using bankruptcy merely as a litigation...more

Franchise “No-Hire” Agreement Class Actions And The Single Enterprise Defense

by Seyfarth Shaw LLP on

Seyfarth Synopsis: There are currently pending at least four class actions claiming that provisions contained in franchise agreements prohibiting the hiring of employees of other intrabrand franchisees without the consent of...more

No-Poach Agreements Targeted by Plaintiffs, Enforcement Agencies and Senators

by Pepper Hamilton LLP on

Agreements among companies to not hire each other’s workers are more risky than ever. The DOJ’s Assistant Attorney General for the Antitrust Division, Makan Delrahim, stated on January 19 that the division has criminal cases...more

EU Retail News - March 2018

It's Not Too Late to Get Ready for the GDPR Caution When Exporting Luxury Goods French Supreme Court Upholds Exclusive Supply Obligation where Necessary to Franchise Network Guest interview with Beth Butterwick, CEO of Karen...more

Intellectual Property and Technology News (North America), Issue 37, Q1 2018

by DLA Piper on

In this issue, we also take a look at some of 2017’s top franchise cases, provide an overview of the European Union’s trade secret directive and give a preview of our latest handbook, “Private LTE Networks: A New User’s...more

FRANCHISOR 101: Liability as Certain as Death & Taxes

by Lewitt Hackman on

Structuring a franchise to reduce risk of joint employment and vicarious liability means limiting a franchisor's control over franchisees. This is a challenge in a professional services franchise, where the brand is...more

FRANCHISEE 101: To First Refuse, or Not to Refuse

by Lewitt Hackman on

A franchisee looking to transfer assets of a franchised business may be subject to the franchisor's right of first refusal, the franchisor's option to purchase the business, or both, depending on the language of a franchise...more

Overview of Distribution Supply Chain Options

by Foley & Lardner LLP on

When determining how to sell a product in the marketplace, there are a number of supply chain options from which to choose, each with its own set of legal implications. However, the primary consideration in determining how to...more

Succession Plans That Succeed

by Fox Rothschild LLP on

Succession plans ask what will happen when the principal owner/operator is not available. A succession plan may be coordinated with an estate plan, which contemplates dispositive transfers through sale, and other means....more

Oh Thank Heaven, Franchisees Not Employees of 7-Eleven!

by Seyfarth Shaw LLP on

Seyfarth Synopsis: Earlier this month, a California federal court dismissed the misclassification claims of 7-Eleven franchisees on the pleadings, finding they did not and could not plead facts sufficient to show that they...more

Competition Newsletter March 2018

by Dentons on

A concerted practice between two pharmaceutical groups aiming to reduce the use of a medicinal product for treatments not covered by its marketing authorization and increasing the use of another competing medicine is likely...more

Malaysia case provides guidance on franchise law

by Dentons on

A recent interlocutory case in Malaysia, (the “La Kaffa decision”) has provided some helpful guidance on when an interlocutory injunction will be granted to restrain a franchisee from operating a competing business after...more

California Courts Narrow the New Motor Vehicle Board’s Jurisdiction to Hear Dealer Protests

by Mulcahy LLP on

The California Legislature established the New Motor Vehicle Board (the “Board”). The mandate of the Board is to enforce the regulatory scheme set forth in the California Vehicle Code and Civil Code meant to regulate the...more

Proving A Franchisor’s Irreparable Injury To Obtain A Preliminary Injunction

by Mulcahy LLP on

When a franchisor grants a franchise, it licenses, among other things, its trade name and business operating system. By doing this, the franchisor trusts its franchisees, area representatives, and sub-franchisors with its...more

FRANCHISEE 101: Til Expiration Do Us Part

by Lewitt Hackman on

Though an individual owner and operator of a formerly franchised Church's Chicken restaurant in Texas was not a signer of the franchise agreement, a district court ruled the individual was subject to the agreement's...more

Sign Me Up! How To Waive The Notary Requirement For International Franchisors

by Fox Rothschild LLP on

International franchisors inbound into the U.S. face a complex set of business decisions and legal regulations. Even seemingly simple tasks–like properly executing a franchise registration application–can become a...more

FRANCHISOR 101: Finger Lickin’ Restrictions

by Lewitt Hackman on

Franchise agreements give franchisors nearly absolute, unfettered discretion to control advertising of their brands. Franchisors need not regard prior course of dealings with franchisees. An Illinois federal court dismissed a...more

Employees Again Sue Jimmy John's Based on Hiring Restriction

A few years ago, the Jimmy John’s sandwich restaurant chain ran into problems over noncompetition agreements entered into with hourly workers at its franchisees’ stores. Several state attorneys general contended that...more

FRANCHISEE 101: Out of Time, Out of Gas

by Lewitt Hackman on

A California federal judge held that breach of contract claims brought by franchisees of two ARCO-branded gas stations against their franchisor BP West Coast Products were untimely, and declined to adopt the franchisees'...more

Federal Court Reinforces That Franchisors Should Control Advertising to Ensure Uniformity

by Pepper Hamilton LLP on

An Illinois federal judge recently found that a franchisor has the absolute right to control its franchisees’ advertising of the products and services offered under a franchise. Lokhandwala v. KFC Corp., No. 17-cv-6394 (N.D....more

No-Hire And No-Solicit Covenants Could Be Overcooked

by Fox Rothschild LLP on

Many franchise agreements contain a provision that restricts a franchisee from hiring or soliciting the employees of the franchisor or other franchisees. A class action lawsuit that was recently filed in the Eastern District...more

Food & Beverage Litigation Update | January 2018 #3

House Panel Questions FDA Officials on Food-Recall Audit - One day after the U.S. Food and Drug Administration (FDA) issued draft guidance on proposals to expedite product warnings and recalls, FDA and other health...more

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