A recent court case (Cognex Corporation v. Air Hydro Power LLC) between a distributor and manufacturer is a reminder to franchise attorneys that not all amounts paid by a licensee to a licensor qualify as a “franchise fee”...more
A Wisconsin federal district court allowed an insurance company’s field representative’s allegations that his representation agreement was an unregistered franchise to proceed beyond the pleading stage....more
A Massachusetts district court granted a product supplier’s motion to dismiss a distributor’s counterclaims that the supplier violated state franchise sales and consumer protection laws. The court found the distributor did...more
The Georgia Court of Appeals recently joined a host of trial and appellate courts across the country that have rejected local governments’ demands for video service franchise fees from streaming service companies. See...more
Franchisee Cipercen, LLC operated several Meineke Car Care Centers. By 2017, Cipercen owed $550,000 in unpaid franchise fees to Meineke and decided to sell the franchises. Cipercen believed Meineke offered to waive the unpaid...more
The right to rescind (or void) a contract is an extraordinary remedy. However, as franchise lawyers know, certain states provide franchisees a right to rescind a franchise agreement in certain situations, particularly where a...more
The recent case of Rhine Enters v. Refresco Beverage out of the federal district court of the Southern District of Illinois should be a reminder to licensors and manufacturers that avoiding the “fee prong” element of a...more
Court Determined City Did Not Show Solid Waste Franchise Fees Were Not Taxes - This week, the California Supreme Court held the City of Oakland failed to demonstrate that solid waste franchise fees included in the City’s...more
PublicCEO Article Addresses Current Rules and What Happens Next - Over the last few years, the Federal Communications Commission (FCC) has been reinterpreting several key Cable Act provisions that govern cable franchise...more
The advent of video streaming services has diminished revenues local governments collect from cable video franchise fees. In response, many local governments scrutinized the laws and regulations authorizing the collection of...more
Franchise Requirements Should Not be Treated as Franchise Fees and Cable Operators Can be Charged Fees on Non-Cable Services, Cities Argue - Three coalitions of cities filed briefs with the U.S. Sixth Circuit Court of...more
On May 26, 2021, the U.S. Court of Appeals for the 6th Circuit affirmed most aspects of the Federal Communications Commission's (FCC) 2019 ruling that nearly all non-cash (or "in-kind") assessments required by cable...more
On May 26, 2021, a Sixth Circuit panel rejected challenges by numerous municipalities to a 2019 order by the Federal Communications Commission (FCC) that most “in kind” (non-cash) contributions required by cable franchisees...more
Since the adoption of state legal medical marijuana in Oklahoma in 2018, commercial licenses in the industry have proliferated. Many prospective licensees lack the relevant cannabis experience to fully develop their business...more
An updated rule issued by the Financial Accounting Standards Board (“FASB”) will again change when most franchisors can recognize revenue in their financial statements from the sale of their franchises and their collection of...more
Revenue is a key component of all businesses, including franchisors, and it is important that counsel to franchisors have an understanding of the potential effects that accounting changes relating to revenue recognition can...more
A federal district court held that under comity principles, Indiana state court is a more appropriate venue for a putative class action brought by three Indiana municipalities seeking to impose franchise fees on a group of...more
On September 21, 2020, the Financial Accounting Standards Board (“FASB”) announced a proposed Accounting Standards Update (“ASU”), that if enacted, would provide a “practical expedient”, simplifying the analysis supporting...more
Surprise! On April 8th, FASB delayed for one year the implementation of the new ASC 606 revenue recognition standards for private companies, citing the coronavirus pandemic. In addition to delaying implementation, FASB...more
Franchise Fees Charged to Waste Hauler are Not a Tax if Reasonably Related to the Value of the Franchise - Franchise fees that exceed the reasonable value of the franchise conveyed may be considered taxes, according to a...more
When the FCC’s Cable Franchise Order became effective on Sept. 26, it upended 35 years of common understanding on what a local government could obtain in cable franchise negotiations, which could cost local governments...more
Twin City Lodging LLC bought a Best Western Hotel in Mankato, Minnesota, then entered into a “Membership Agreement” with Best Western International. Best Western granted Twin City a license to operate the hotel under Best...more
The FCC released its third Section 621 Report and Order late Friday, which has the potential to cost local governments hundreds of millions of dollars in cable franchise fees. Also, unlike FCC cable orders in the past 10...more
On Thursday, August 1, 2019, the FCC took several actions to address persistent, decades-long efforts by local governments to convert their control over local rights-of-way into ever-increasing revenue streams from cable...more
Thanks to a new revenue recognition standard implemented by the Financial Accounting Standards Board (FASB), formally titled “ASC 606, Revenue from Contracts with Customers” (“ASC 606”), the ability of business owners to...more