A federal court in Michigan recently granted several related franchisors’ motions to dismiss a franchisee’s claims for violations of the Michigan Franchise Investment law. Benjamin Franklin Franchising SPE LLC v. David...more
A federal court in California denied a subfranchisor’s motion to transfer venue, holding that its Operator Agreement constituted a franchise agreement, thus making its forum-selection clause void under the California...more
Finding the right distributor is critical to the success of an alcohol brand—as is ensuring the agreement appointing that distributor provides ample protection for the supplier or brand owner. At a high level, suppliers...more
On January 1, 2023, Assembly Bill (“AB”) 676 will go into effect, significantly amending the California Franchise Relations Act and Franchise Investment Law. The provisions of AB 676 will only apply to franchise agreements...more
This year new laws, recent decisions and additional pending legislation are targeting and could severely impact the future of franchising. Our panel will discuss how these new laws, decisions and pending legislation will...more
The Sixth Circuit has held that a contractual forum-selection clause in a franchise agreement was unenforceable because it violated state law. In Lakeside Surfaces, Inc. v. Cambria Company, LLC, Lakeside Surfaces, a...more
The Georgia legislature is considering a new exemption to the state’s longstanding franchise laws against vehicle manufacturers selling directly to consumers. Senate Bill 398 is currently before the Georgia State Senate. If...more
The World Health Organization (“WHO”) declared the coronavirus (“COVID-19”) a global pandemic on March 11, 2020. In less than a week after the declaration from WHO, the COVID-19 pandemic has caused the closure of fitness club...more
The new Franchise Law of the Kingdom of Saudi Arabia was promulgated by Royal Decree M/22 dated 09/02/1441 Hijri (corresponding to 8 October 2019) and will come into effect in April 2020. The Ministry of Commerce and...more
The Ninth Circuit ruled that a California Matco Tool franchisee, John Fleming, could bring a class action wage and hour suit in California, even though a forum selection clause in the distribution agreement specified Ohio...more
It’s the time of year when most franchisors start to think about FDD updates. Under the Federal Trade Commission (FTC) Franchise Rule, the FDD must be updated within 120 days after a franchisor’s fiscal yearend. For...more
Under California law, a business relationship is a “franchise” if: (1) the business will be substantially associated with the franchisor’s trademark; (2) the franchisee will directly or indirectly pay a fee to the franchisor...more
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
A number of food and beverage groups (particularly restaurant groups) access the Gulf Cooperation Council (GCC) markets through franchising arrangements. With a young and fast-growing population (many of whom spent time...more