News & Analysis as of

Franchisee

NLRB Agenda Includes Setting a Regulatory Joint Employer Standard

by Hinshaw & Culbertson LLP on

We have written previously regarding the saga of the National Labor Relations Board and joint employer status. In short, the question of when a business is responsible for another business’s employees has been in flux for a...more

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

The Franchisor Is Liable For Franchisee’s Submission Of Fraudulent Tax Statements?!

by Fox Rothschild LLP on

In Lomeli v. Jackson Hewitt, Inc., the United States District Court in the Central District of California held that the plaintiff, Luis Lomeli (“Lomeli”), had submitted enough evidence to hold the franchisor (“Jackson...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

FRANCHISEE 101: A Sweet Non-Compete

by Lewitt Hackman on

A Florida federal court held that the non-compete provision in a chocolate shop franchise agreement was enforceable against an ex-franchisee operating a competing chocolate store at the former franchised location....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

State Regulatory Roundup (ABA Franchise Forum Retrospective)

by Fox Rothschild LLP on

Each year the ABA Forum on Franchising Annual Meeting offers a regulatory roundup on state disclosure and registration issues consisting of a panel of franchise examiners from some of the most difficult registration states....more

How to Ensure Your Franchise Application Process Is Airtight–No Matter Your System’s Size

by Fox Rothschild LLP on

Last year at the ABA Forum on Franchising Annual Meeting, the programming included a seminar entitled “Between You and Me: A Toolkit to Counsel in and to Smaller Systems.” The purpose of the session was to provide new...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

Are Franchisees Employees? California Court Says No

In October 2017, four franchisees filed a federal complaint against the global convenience store chain, 7-Eleven, seeking to represent a purported class of over 1,000 similarly situated 7-Eleven franchisees in California. The...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

Whiplash on the Browning-Ferris Wheel: NLRB Vacates Recent Hy-Brand Decision and Reverts to Obama-Era Joint Employer Standard

by Faegre Baker Daniels on

If you are experiencing whiplash from the National Labor Relations Board’s wild ride of a year, you are not alone. In a surprising turn of events, on February 26, 2018, the NLRB vacated its decision in Hy-Brand Industrial...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

General Counsel Dishes Up Advice on 43 Charges, Including Google’s Decision to Terminate an Employee for Harassment and a Union’s...

by Seyfarth Shaw LLP on

Seyfarth Synopsis: In some early spring cleaning, last week the NLRB’s Office of General Counsel released 43 memos authored by its Division of Advice meant to provide guidance to regional offices on pending charges. Here are...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

Franchisor 101: Copycat Restaurant Shutdown

by Lewitt Hackman on

A registered trademark is a valuable corporate asset and can be a significant part of a company's worth. A franchisor has an affirmative legal duty to police use of its mark by licensed franchisees and also third-party...more

II-27 - Our 1st Anniversary Special: Bringing Back Our Inaugural Guest to Discuss What Was and What Will Still Be With President...

by Cozen O'Connor on

Happy Anniversary! This podcast started one year ago today on February 1, 2017 with Howard Schweitzer prognosticating about what employers can expect with a new President Trump Administration. One year to the day, Howard...more

National Labor Relations Board Reverses Course on Joint Employer Test

by Perkins Coie on

The National Labor Relations Board (NLRB) issued a decision relating to the test for joint employment under the National Labor Relations Act (NLRA). The decision upheld the Administrative Law Judge’s ruling that two entities...more

SBA to Ring In New Year with New Franchisor Requirements

by Davis Wright Tremaine LLP on

Effective January 1, 2018, franchisors that wish to help their franchisees qualify for loans backed by the U.S. Small Business Administration (SBA) must be listed on the SBA’s new “Franchise Directory.” SBA-guaranteed small...more

Full Speed Ahead: SBA Directory May Hasten Franchisee Lending Process

by Lewitt Hackman on

As of January 1, 2018, the U.S. Small Business Administration (SBA) will begin implementing new rules that will affect franchisors, entrepreneurs wishing to join a franchise system, and lenders or CDCs (Certified Development...more

FRANCHISEE 101: Offer Too Little Too Late

by Lewitt Hackman on

A Florida federal district court found that a doughnut franchisee's failure to pay royalties and other fees constituted a material breach of contract justifying termination, even though the franchisee expressed a willingness...more

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