News & Analysis as of

Franchisors

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

Tips for Drafting and Negotiating Restaurant Leases

As restaurants gain popularity as the flashy new anchor tenants in real estate developments, a number of restaurant-specific lease concepts will arise in lease negotiations for a well-planned restaurant space. The importance...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

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

EU & Competition Law Update – December 2017

by Bryan Cave on

European Court of Justice questions validity of commitments procedure under EU competition law - On 23 November 2017, the Court of Justice of the European Union (CJEU) surprised many competition law commentators, when it...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 Reverses Controversial BFI Joint Employer Standard

Just hours before Chairman Miscimarra’s tenure is to end, the National Labor Relations Board (NLRB) has issued two decisions with sweeping impact. Together, they overturn many of the Obama Board’s most controversial decisions...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

What Restaurant Franchising Tells Us About The Future

by Fox Rothschild LLP on

Restaurant operators and their financiers often need to predict the future. The operators, mostly from franchised brands, need to adapt to changing tastes and fashion. The financiers need to assess risk before making...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

Another Joint Employment Development, And Still More Uncertainty

by Foley & Lardner LLP on

For the last several years, “joint employment” (whatever that now means legally) has been anything but the gift that keeps on giving for employers. First, joint employment became a tool that the previous Administration locked...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

Drafting Matters: Do Your Non-Competes Bind The Correct Parties?

by Fox Rothschild LLP on

A federal court in Colorado recently upheld a franchisor’s non-competition provision despite that state’s strong public policy against non-competes. The franchisor prevailed due to its thoughtful contract drafting and ability...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

4 Top Takeaways: Use of Investigators

Kilpatrick Townsend senior counsel Chris Bussert recently presented in a workshop with Jeremy Liebman, franchise counsel at Krispy Kreme Doughnut Corporation, at the ABA Annual Forum on Franchising in Palm Springs,...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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