News & Analysis as of

Franchisee

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

FRANCHISOR 101: NLRB: Out With the New

by Lewitt Hackman on

On December 14, 2017, the National Labor Relations Board (Board) in Hy-Brand Industrial Contractors, Ltd., 365 NLRB No. 156 (2017) expressly overruled the divisive joint-employer standard adopted by Browning-Ferris...more

NLRB Reverses Browning-Ferris and Re-Establishes More Limited Standard for Determining Joint Employer Status

by Hirschfeld Kraemer LLP on

On December 14, 2017, the National Labor Relations Board (the “NLRB” or “Board”) decided Hy-Brand Industrial Contractors, Ltd. and Brandt Construction Co. (“Hy-Brand”), reversing its 2015 decision in Browning-Ferris...more

The NLRB Restores Pre-Browning- Ferris Joint Employer Standard

by Steptoe & Johnson PLLC on

The joint employer standard, which is used to determine the extent to which one employer may become liable for obligations of another, has long been a very politically-charged issue. It therefore comes as no surprise that...more

Franchisees Lose Bid To Vacate Arbitration Award Enforcing Non-Compete Clause Despite Claim That Arbitrator Manifestly Disregarded...

by Carlton Fields on

A set of former franchisees are prohibited from violating the terms of a non-compete clause with franchisor Wild Bird Centers of America (“WBCA”) for two years after the Fourth Circuit recently upheld the denial of their...more

Employers Score Major Win as Predicted Changes at National Labor Relations Board Start to Come True

by Blank Rome LLP on

On Thursday, December 14, 2017, employers scored a significant victory at the National Labor Relations Board. The Board, in a straight 3-2 partisan vote, reversed its 2015 decision in Browning-Ferris Industries and eliminated...more

NLRB Overturns Obama Board's Expansion of the Joint-Employer Doctrine

by Holland & Knight LLP on

• A recent National Labor Relations Board decision unexpectedly reversed a controversial Labor Board ruling issued during the Obama administration that had dramatically expanded the joint-employer doctrine and made companies...more

NLRB Overrules Browning-Ferris Joint Employer Standard

On November 14, 2017, the National Labor Relations Board (“Board”) overruled Browning-Ferris Industries, 362 NLRB No. 186 (2015) (“BFI”) and returned to the pre-BFI standard that governed joint employer liability. Hy-Brand...more

Browning-Ferris Joint Employer Standard Reversed By NLRB

by Fox Rothschild LLP on

On December 14, 2017, the NLRB issued a decision in Hy-Brand Industrial Contractors that caused a collective sigh among employers. The decision rolls back the joint employer standard to what it was before Browning-Ferris...more

Federal Court Rules Against Calzone Franchisor In Meaty Lawsuit Against Former Franchisee

by Seyfarth Shaw LLP on

In a meaty decision involving the intersection of restrictive covenant and franchise law, the United States District Court for the Southern District of Ohio recently denied a request by D.P. Dough Franchising, LLC (“D.P....more

FRANCHISEE 101: All in the Family

by Lewitt Hackman on

Some creativity can help in passing a former franchised business to the next generation, particularly if the franchisor has no part in the franchisee's succession plan. A federal court in Nebraska preliminarily enjoined...more

FRANCHISOR 101: Injunction Bottleneck

by Lewitt Hackman on

A restaurant franchisor, World of Beer Franchising ("WOB"), recently lost an appeal to enforce a post-termination restriction against a franchisee launching a competing business. Both the trial and appellate court ruled...more

Did You Hear? Watch Out For Ohio’s BOPPA!

by Fox Rothschild LLP on

A recent decision in the United States District Court of Arizona (“Court”) could have far-reaching consequences to many franchisors based on the broad-sweeping principles the Court used in its reasoning. In Zounds Hearing...more

5 Key Takeaways-What You Need to Know in the US and Latin America About Franchising and IP

Kilpatrick Townsend Partner Marc Lieberstein, Co-Chair of the firm’s Retail & Consumer Goods Industry Team and member of the Firm’s Latin American Focus Group, recently joined other thought-leaders on an international panel...more

The UK Criminal Finances Act 2017: tax evasion implications for franchisors – action steps

by DLA Piper on

The Criminal Finances Act 2017, now in force in the United Kingdom, introduces two new criminal offenses in respect of the facilitation of tax evasion. The new offenses will be committed where a corporate entity or...more

Congressional Bill: Joint Employer Liability May Become More Limited

by Jackson Lewis P.C. on

The EPL industry rightfully has been concerned about the NLRB’s and courts’ expansion of liability from the seeming employer to those with relationships to that entity. Franchisors increasingly were exposed to liability for...more

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

by Lewitt Hackman on

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

FRANCHISOR 101: Arbitr-“all”

by Lewitt Hackman on

A federal court in New Jersey granted a franchisor's motion to compel arbitration of disputes involving seven frozen yogurt franchises, even though the claims were subject to different arbitration provisions in different...more

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