News & Analysis as of

Franchisors

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

Pure Hearts and Franchise Termination: The Role of Good Faith Under State Relationship Laws

by Pepper Hamilton LLP on

In a recent decision, the United States Court of Appeals for the Third Circuit affirmed the dismissal of a franchisee’s claim that the franchisor’s termination decision violated the New Jersey Franchise Practices Act (NJFPA)...more

FRANCHISOR 101: Future Royalties and Beyond

by Lewitt Hackman on

A Florida federal court refused to dismiss a franchisor's claim for past due royalties and lost future profits. The case concerned an Interim Healthcare staffing franchise in Arizona. The franchisor issued a default notice...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

Franchisor Bankruptcy Case Dismissed as a Bad Faith Filing

by Foley & Lardner LLP on

The United States Bankruptcy Court for the District of Delaware recently issued an opinion discussing the tension between using bankruptcy as a legitimate tool to maximize value versus using bankruptcy merely as a litigation...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

Competition Newsletter March 2018

by Dentons on

A concerted practice between two pharmaceutical groups aiming to reduce the use of a medicinal product for treatments not covered by its marketing authorization and increasing the use of another competing medicine is likely...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

What Types Of Franchise Sellers Must Register In Washington?

by Fox Rothschild LLP on

Michelle Webster, a franchise financial legal examiner with the State of Washington Department of Financial Institutions, took a few minutes at the start of the ABA Forum on Franchising’s Annual Meeting seminar on disclosures...more

Sign Me Up! How To Waive The Notary Requirement For International Franchisors

by Fox Rothschild LLP on

International franchisors inbound into the U.S. face a complex set of business decisions and legal regulations. Even seemingly simple tasks–like properly executing a franchise registration application–can become a...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

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

Federal Court Reinforces That Franchisors Should Control Advertising to Ensure Uniformity

by Pepper Hamilton LLP on

An Illinois federal judge recently found that a franchisor has the absolute right to control its franchisees’ advertising of the products and services offered under a franchise. Lokhandwala v. KFC Corp., No. 17-cv-6394 (N.D....more

ABA Forum Takeaway: Will The Trump Era Mark The End Of Franchise Regulation?

by Fox Rothschild LLP on

As we head into Tuesday night’s State of the Union Address, our thoughts at Fox Rothschild return to last year at the ABA Forum on Franchising Annual Meeting in Palm Desert, California. One of the most interesting seminars...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

Joint Employer Standard Relaxed – For Now

by Akerman LLP - HR Defense on

Business owners, franchisors, contractors, and staffing agencies can breathe a little easier – for the moment – following the National Labor Relations Board’s reversal last month of a controversial Obama-era standard that...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

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