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Franchisors Restaurant Industry

Littler

Hot Take(out): California Fast Food Franchises Could Face Increased Liability

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It’s been a busy spring at the California state capitol.  Among the few thousand bills being considered by California’s legislature this year, AB 1228 stands out.  The bill would essentially create joint liability for...more

Littler

California Legislature Serves Up Bill Proposing Joint Employer Liability For Fast Food Franchisors

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With one day left to spare before the deadline to introduce new bills, on February 16, 2023, California Assemblymember Chris Holden (D-41) introduced Assembly Bill 1228, the “Fast Food Franchisor Responsibility Act.”  This...more

Lewitt Hackman

It’s Baaack, Only One Year Later: AB 257 Attacks Franchise Restaurant Model

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On January 31, 2022, the California State Assembly passed AB 257, the Fast Food Accountability and Standards Recovery Act (FAST Recovery Act, or the “Act”) by a vote of 41-19. The bill was originally introduced in January...more

Lewitt Hackman

California Fast Food Workers March to Support Anti-Franchisor Legislation

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According to the Los Angeles Times, fast-food workers at McDonald’s restaurants in Los Angeles, Oakland, Sacramento, San Diego and San Jose intend to walk off their jobs on November 9 in support of the passage of California...more

Polsinelli

Labor Department Rescinds Pro-Franchise Joint-Employment Rule

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On July 29, 2021, the U.S. Department of Labor announced it is rescinding a final rule issued just last year (2020 Final Rule) that sought to clarify the standard for finding two separate entities to be “joint employers”...more

Lewitt Hackman

Franchisee 101: Franchisor’s Impact Study Fails to Influence Court

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A federal district court denied KFC’s defensive summary judgment motion, enabling its franchisee to go to trial on claims against KFC for breach of the implied covenant of good faith and fair dealing by opening a competing...more

Lewitt Hackman

A Reprieve for Franchise Business Model in California

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California Assembly Bill 257, the Fast Food Accountability and Standards Recovery Act (FAST Recovery Act or AB 257) was defeated by the California Assembly on June 3, 2021. The bill was introduced by Assembly Member Lorena...more

UB Greensfelder LLP

[Webinar] Post-Pandemic Trends in the Fast-Casual Restaurant Industry - June 23rd, 2:00 pm - 2:45 pm EDT

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Join Ulmer Partner Jodi Rich and founder and Senior Vice President/Principal of Goodman Real Estate Services Group LLC., Richard Edelman, as they discuss business trends in the fast-casual restaurant industry that were...more

Carlton Fields

Food for Thought: Can the Small Business Reorganization Act Be a Path for Restaurant Franchises?

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Both franchisees and franchisors in the restaurant industry have weathered tumultuous times due to the economic consequences of COVID-19. Franchisors faced hurdles such as having to reduce or eliminate royalties for...more

Lathrop GPM

The Franchise Memorandum - Issue # 263

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Illinois Federal Court Excludes Plaintiffs’ Expert Testimony on Certification Motion in Anti-Poaching Class Action - A federal court in Illinois granted Jimmy John’s motion to exclude expert testimony of a putative class...more

Fox Rothschild LLP

New COVID Restrictions In Pennsylvania Hit Franchising . . . Hard

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At 4 p.m. today, Pennsylvania Governor Tom Wolf (who himself has tested positive for COVID) and Secretary of Health Rachel Levine issued new, “limited-time”, targeted COVID mitigation orders. The orders hit the franchise...more

Lewitt Hackman

Changes: Cooperation Rather Than Conflict

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The COVID-19 pandemic forced food service franchisors and franchisees to adapt their business models and operations procedures and work together to survive during these unprecedented times. People generally resist change...more

Lewitt Hackman

Franchisee 101: COVID Defense Leads to Contempt

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A federal court in Tennessee held a Gus’s World Famous Fried Chicken former franchisee in contempt for failure to deidentify its restaurant after entry of a temporary restraining order and consent to a permanent injunction. ...more

Lewitt Hackman

FRANCHISEE 101: Bar-B-Q Blues — A Tale of Friendship, Partnership, and Deceit

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A federal appeals court reversed dismissal of a claim against a barbeque restaurant franchisor. The court found that, despite having signed releases in favor of the franchisor, a former franchisee had valid claims for...more

Fox Rothschild LLP

Obstacles To Food Service Delivery

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The Franchise and Distribution Section of the Georgia Bar met for business and pleasure last December. We heard from two exceptional presenters – Lindsay Morgan of Greenberg Traurig LLP and Tad Low of Moe’s Southwest Grill – ...more

FordHarrison

One Small Win for McDonald's, and One Giant Victory for Small Business Owners

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On Thursday, December 12, 2019, the National Labor Relations Board (NLRB or the Board) ordered an administrative law judge to approve a settlement previously reached between McDonald’s, its franchisees, and workers. Although...more

Lewitt Hackman

Franchisor 101: Lesson in License Agreements

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The U.S. Sixth Circuit Court of Appeals upheld summary judgment for franchisor Buffalo Wild Wings (“BWW”) rejecting a restaurant operator’s counterclaims for wrongful termination, malicious prosecution, and breach of...more

Fox Rothschild LLP

Franchising In The Smart Home Era

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In the near future, customers will likely be ordering their fast food through their smart home devices, such as Amazon’s Alexa or Google Home. Gary Vaynerchuk, chairman of VaynerX, a modern-day media and communications...more

Lewitt Hackman

Franchisor 101: Termination Is Not Enforcement

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A federal district court upheld an arbitration panel’s decision to deny attorneys’ fees to Benihana, even though Benihana won a dispute with its licensee. The licensee started arbitration claiming Benihana breached the...more

Fox Rothschild LLP

Restaurant Structural Change: The Opportunity

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Last time we asked, given the high number of restaurant concept bankruptcies and money sloshing around in the sector, is there still more upside than downside in the restaurant franchising sector? We can find the answer by...more

Fox Rothschild LLP

Restaurant Structural Change: The Challenge

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Imagine operating a single restaurant. The food keeps bringing them in, and prices are relatively stable. Consumer confidence is high, unemployment low, discretionary income rising, and people are going out more. Now multiply...more

Lewitt Hackman

FRANCHISOR 101: Thrust Into Antitrust

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Jimmy John’s will face antitrust claims, after an Illinois federal judge declined to dismiss allegations in a class action. Plaintiffs claim the chain’s franchise agreement harmed competition by preventing franchisee...more

Polsinelli

NLRB Judge Rejects Proposed Settlement In McDonald’s Joint Employer Case

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On July 17, 2018, a National Labor Relations Board (“Board”) Administrative Law Judge (“ALJ”) rejected a proposed settlement that would have concluded the closely-watched consolidated unfair labor practice case against...more

Lewitt Hackman

FRANCHISEE 101: Til Expiration Do Us Part

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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

Lewitt Hackman

Franchisor 101: Copycat Restaurant Shutdown

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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

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