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Federal Trade Commission (FTC) Franchisors

Akerman LLP

Leisure Law Insider (Vol. 3) - Summer 2024

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Welcome to the third edition of The Leisure Law Insider! Released quarterly, we cover the latest news and developments in leisure and hospitality law, regulation, and policy. Expect content on hotels, franchising, labor and...more

Davis Wright Tremaine LLP

Warns Franchisors Against Unfair Practices and Spotlights Risks in Franchising

The FTC administers the federal franchise sales law, which requires all franchisors engaged in franchise sales in the United States to deliver a franchise disclosure document (FDD) to their prospective franchise buyers unless...more

Foley & Lardner LLP

Federal Trade Commission Issues Policy Statement on Franchisors’ Use of Non-Disparagement, Goodwill, and Confidentiality Clauses...

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On July 12, 2024, the Federal Trade Commission (FTC) issued a policy statement regarding franchisors’ use of contract provisions such as non-disparagement, goodwill, and confidentiality clauses. This is another example of the...more

Morgan Lewis

FTC Expands Its Focus on Franchising Regulation with New Policy Statement and Staff Guidance

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The Federal Trade Commission (FTC) on July 12, 2024 released a policy statement warning that the use of contract provisions that prohibit franchisees from communicating with the government about legal violations are unlawful....more

Orrick, Herrington & Sutcliffe LLP

FTC reminds industries of its enforcement of the Franchisee Rule

On July 12, the FTC released a new policy statement, staff guidance, and an issue spotlight about allegedly unfair and deceptive practices by franchisors. The policy statement addressed the FTC’s concerns that franchisees...more

Cozen O'Connor

The State AG Report – 7.18.2024

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Here are curated AG and federal regulatory news stories highlighting key areas in which state and federal regulators’ decisions are having an impact across the US: •Gasoline Trading Firms to Pay $50 Million to Settle...more

Lathrop GPM

FTC Takes Action Impacting the Franchise Relationship

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On Friday, July 12, 2024, the Federal Trade Commission (“FTC”) published an analysis of the information it received in response to its Request for Information related to  franchisors’ business practices, launched in March...more

Polsinelli

FTC Issues Statements Signaling Major Changes to its Oversight of Franchise Relationships and Franchise Disclosure Requirements

Polsinelli on

On July 12, 2024, the FTC released several statements and a News Release as its first response to comments collected in response to the March 2023 Franchise Request for Information (RFI). These actions are part of the FTC’s...more

Troutman Pepper

The FTC Intervenes in Franchise Relationships

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The U.S. Federal Trade Commission's (FTC) latest policy statement aims to dictate the outcome of contract negotiations between franchisors and their franchisees and to limit the potential negative impact on franchisees of...more

Skadden, Arps, Slate, Meagher & Flom LLP

FAQs About the FTC’s Broad New Ban on Noncompetes

When the Federal Trade Commission (FTC) issued its long-awaited final rule banning virtually all noncompete clauses between workers and employers, it also published 500-plus pages of commentary....more

Polsinelli

What is the Impact of the FTC’s Final Non-Compete Rule on Franchisors and Franchisees?

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As explained in Polsinelli’s prior alert of April 24, 2024, the FTC announced its final rule on non-compete covenants (the “Rule”) on April 23, 2024. Critically, the Rule does not prohibit non-compete agreements between...more

UB Greensfelder LLP

FTC Issues Rule Prohibiting Non-Competes

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On April 23, 2034, the Federal Trade Commission (FTC) issued a final rule intended to ban the use and enforcement of most non-compete clauses signed by workers. The new rule is not in effect yet. It will become...more

Fox Rothschild LLP

Court Grants nearly $49 Million Default Judgment Against Burger Franchisor in First FTC Franchise Lawsuit in over a Decade

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A federal district court recently granted the United States’ Motion for Default Judgment against the quick-service burger restaurant franchise concept, Burgerim Group USA, Inc. and its owner (“Burgerim”). The Federal Trade...more

Fox Rothschild LLP

Is it time to Franchise My Business – Part I?

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You are an entrepreneur. You created, founded and currently operate a successful and vibrant business. Perhaps customers, family members, or friends are loyal fans of your brand and are approaching you with a request to...more

Lathrop GPM

Seventh Circuit Reverses Dismissal of Anti-Poaching Class Action Against McDonald’s

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In an important case of first impression that drew amicus participation from the Department of Justice, the Federal Trade Commission, and the International Franchise Association, the Seventh Circuit reversed a judgment in...more

Ward and Smith, P.A.

Commentary on Franchising Myths from the FTC

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Drive down almost any busy street, and you'll see numerous examples of well-known franchises, from McDonald's to Ace Hardware. You may have considered opening a franchise and wondered about the potential rewards and...more

Foley & Lardner LLP

“If It’s Not Broken, Don’t Fix Break It”— The FTC Targets the Franchise Business Model

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Historically, the Federal Trade Commission (FTC) has shied away from regulating the substance of franchisor-franchisee relationships. A recent FTC press release, however, suggests this may soon change. If so, it is by no...more

Foley & Lardner LLP

“Your Comments Here”: the FTC Seeks Public Comment on the Nature of Franchise Relationships

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On March 10, 2023, the Federal Trade Commission (FTC) notified the public it is seeking comments from franchisors, franchisees, and other related parties about franchise agreements, franchisor business practices, and how...more

Polsinelli

FTC Turns Its Attention to Franchising

Polsinelli on

On Friday, March 10, 2023, the Federal Trade Commission issued a Request for Information (“RFI”) soliciting public comments on various issues pertaining to the franchisor-franchisee relationship, including franchisor supply...more

Wiley Rein LLP

Wiley Consumer Protection Download (March 13, 2023)

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Welcome to Wiley’s update on recent developments and what’s next in consumer protection at the Consumer Financial Protection Bureau (CFPB) and Federal Trade Commission (FTC). In this newsletter, we analyze recent regulatory...more

Mintz - Antitrust Viewpoints

Federal Trade Commission Continues Policy Initiatives by Seeking Public Comment on Franchisor-Franchisee Relationships

The Federal Trade Commission on Friday announced a Request for Information regarding “franchise agreements and franchisor business practices, including how franchisors may exert control over franchisees and their workers.”...more

Fox Rothschild LLP

Is a National Program for Franchise Broker Registration Coming and Other Franchise Broker Tips & Takeaways

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I had the pleasure this year along with fellow franchise attorneys, Gerry Wells of Rita’s Franchise Company and Allan Hillman of Garcia & Milas, to present at the ABA Forum on Franchising Annual Meeting in San Diego. The...more

Foley Hoag LLP

Massachusetts Supreme Judicial Court Rules that Independent Contractor Test Applies to Franchisees

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On March 24, 2022, the Massachusetts Supreme Judicial Court (SJC) ruled in Patel v. 7-Eleven that the test for independent contractor status set forth in the Massachusetts independent contractor statute applies to the...more

Morgan, Brown & Joy, LLP

Massachusetts Supreme Judicial Court’s Franchise Decision May Create Compliance Challenges for Commonwealth Franchisors

On March 24, 2022, the Massachusetts Supreme Judicial Court (“SJC”) held that the Commonwealth’s independent contractor test applies to the franchisee-franchisor relationship. In Patel v. 7-Eleven, Inc., the Court found that...more

Fox Rothschild LLP

Tips for Enforcing that Mediated Franchise Settlement Agreement

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Mediation is very effective in resolving disputes. Franchisors are enthusiastic about mediation, especially pre-suit, because it can eliminate the need to disclose settlements to prospective franchisees otherwise required...more

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