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Franchise Fees Franchisee

Lewitt Hackman

Franchisee 101: Insurance Franchisor Cannot Mitigate Franchise Claims

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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

Lewitt Hackman

Franchisee 101: The Price is Right - What Payments Establish a Franchise Relationship?

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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

Lewitt Hackman

Franchisee 101: Transaction Totaled

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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

Troutman Pepper

Streaming and Franchise Fees: Implications for Communications Infrastructure

Troutman Pepper on

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

Davis Wright Tremaine LLP

6th Circuit Largely Affirms FCC Ruling That Most In-Kind Franchise Requirements Are Franchise Fees

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

Lewitt Hackman

New Revenue Rule Affects Franchisors

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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

Kilpatrick

ASC 606 and Its Impact on the Franchise Industry

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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

Pillsbury - SeeSalt Blog

Indiana Municipalities’ Franchise Fee Lawsuit Against Online Video Providers Remanded to State Court

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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

Lewitt Hackman

Franchisee 101: If it Walks Like a Franchise, Talks Like a Franchise, it Might Be a Franchise

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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

Shumaker, Loop & Kendrick, LLP

Client Alert: Business Owners–Did you really earn that revenue? The Authorities say “Not so FASB.”

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

Lewitt Hackman

Franchisee 101: A Lifeline Franchise?

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When you pay your phone bill, part of the taxes go into a fund used by the government to subsidize cell phone service to qualifying individuals, under federal and state Lifeline programs. Phones typically reach the end...more

Lewitt Hackman

Franchisor 101: New Revenue Recognition Rule for Initial Franchise Fees

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Most franchisors’ annual franchise registration renewal deadlines are a few months away. Nevertheless, franchisors should contact their accountants now regarding a new revenue recognition rule issued by the Financial...more

Lewitt Hackman

FRANCHISEE 101: Rocky Road to FDD Disclosure

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An ice cream parlor franchisor in Ohio, Handel Enterprises, Inc., must defend claims that it violated the California Franchise Investment Law (CFIL) for failing to disclose its amended franchise disclosure document (FDD) to a...more

Lewitt Hackman

FRANCHISEE 101: Thirty-one Flavors of Fees (Or Just One)

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Baskin-Robbins charges a dairy supplier a so-called "commercial factor" fee for the right to make and sell Baskin-Robbins proprietary ice cream to franchisees. The supplier's pricing to franchisees includes an amount equal to...more

Lewitt Hackman

FRANCHISEE 101: A Perpetual Franchise

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When a franchisee "buys into" a franchise system by paying an "initial franchise fee," the franchisee is typically purchasing the right to use the franchisor's trademarks and business system for an initial term that lasts a...more

Lewitt Hackman

FRANCHISOR 101: Outdated FDDs and Unregistered Franchises

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The California Department of Business Oversight ("DBO") recently issued three Orders against franchisors for violating California's franchise laws....more

Lewitt Hackman

FRANCHISEE 101: "Two Wrongs Don't Make a Right"

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At one time or another, many people have occasion to be renters who feel mistreated by a landlord. This may be due to delays in repairs, responses, or just turning on the heat. A typical reaction is the temptation to...more

Lewitt Hackman

FRANCHISEE 101: Hawaiian Distributor May Be a Franchisee

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A long-standing distributor and licensee of Harley-Davidson motorcycles in Hawaii was entitled to proceed on its claim that the business relationship with Harley-Davidson Motor Company, Inc. was a "franchise" under Hawaii's...more

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