News & Analysis as of

Restaurant Industry Franchises

Goodwin

Ten Issues to Consider When Acquiring a Food Business

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The food industry is generally considered recession-resistant and less susceptible to economic downturns than other sectors, making it an attractive investment for private equity firms seeking stable returns. The increasing...more

Littler

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

Littler on

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

Bradley Arant Boult Cummings LLP

When Does a Trademark License Turn into a Franchise?

When entering into a trademark license agreement most trademark owners do not consider the possibility that their agreement actually may be a franchise, which would subject them to specific disclosure requirements and a...more

Shook, Hardy & Bacon L.L.P.

Buffalo Wild Wings Deceives Consumers on its Boneless Wings, Man Alleges

An Illinois man has filed a lawsuit against Buffalo Wild Wings, accusing the restaurant chain of misleading consumers into believing its boneless wings are actually chicken wings. Halim v. Buffalo Wild Wings Inc., No. 23-1495...more

Jackson Lewis P.C.

Preliminary Injunction GRANTED Against AB 257 Enforcement & Implementation

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While the Secretary of State continued to count signatures to determine if a potential referendum challenging the FAST Recovery Act (AB 257) will make it on the ballot, the Sacramento Superior Court has issued a preliminary...more

Jackson Lewis P.C.

Temporary Restraining Order Against the FAST Recovery Act

Jackson Lewis P.C. on

While the Secretary of State continued to count signatures to determine if a potential referendum on the FAST Recovery Act (the Act) will make it on the ballot, a lawsuit was filed by a coalition of California small business...more

Fox Rothschild LLP

Not So FAST: FAST Recovery Act on Pause until 2024 Referendum - Updated

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On Labor Day, California Gov. Gavin Newsom signed the Fast Food Accountability and Standards Recovery Act (FAST Recovery Act), which authorized the California Department of Industrial Relations to create a Fast Food Council...more

Latham & Watkins LLP

California Adopts the FAST Recovery Act: What Fast-Food Chains Need to Know

Latham & Watkins LLP on

The Act has the potential to significantly increase wages for restaurant employees and to impose work scheduling limitations on restaurant companies. Key Points: ..Restaurant companies that are part of a chain with...more

Latham & Watkins LLP

Due Diligence: The Key Ingredient in Restaurant M&A

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Due diligence on restaurant companies should factor in industry-specific legal and operational risks. Buyers acquire restaurant companies to access new brands, expand and diversify, or vertically integrate. Attractive...more

Lewitt Hackman

Relief for Restaurant, Other Small Business Franchisees

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On April 7, 2022, the House of Representatives passed bill H.R. 3807, the Relief for Restaurant Franchisees and other Hard Hit Small Businesses Act of 2022, which, if passed by the U. S. Senate, will add $42 billion to the...more

Lewitt Hackman

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

Lewitt Hackman on

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

Fox Rothschild LLP

Franchising Follows Consumer Preferences

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Wall Street tells us more about ourselves than perhaps we really want to know. The pandemic has challenged and brought out the best in dining, and particular quick service restaurants. The changes are not only on consumer...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

Burr & Forman

Corporate E-Note - August 2021

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Department of State Extends Validity of National Interest Exceptions to Regional COVID-19 Travel Restrictions - On July 6, 2021, the Department of State updated its National Interest Exception (NIE) guidelines. Going...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

A Reprieve for Franchise Business Model in California

Lewitt Hackman on

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

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

Husch Blackwell LLP

New Program To Provide Relief To Restaurant Industry

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The Restaurant Revitalization Funding (RRF) program, established pursuant to the American Rescue Plan Act signed into law March 11, 2021, provides eligible businesses with the opportunity to recoup a portion of their...more

Fox Rothschild LLP

Appeals Court Upholds New York City’s Fair Workweek Law

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More bad news for New York City’s fast food employers. The Supreme Court of the State of New York, Appellate Division, First Department has upheld New York City’s Fair Workweek Law in a decision that rejects a challenge from...more

Lewitt Hackman

Restaurant Revitalization Fund Application Process and Guidelines Update

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The Small Business Administration (SBA) released key details on application requirements (RRF Application), eligibility and a program guide (RRF Program Guide) for the Restaurant Revitalization Fund (RRF) on April 19, 2021....more

Baker Donelson

SBA Releases Application and Guidelines for $28.6 Billion Restaurant Revitalization Fund

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The American Rescue Plan Act of 2021 (ARPA) includes a $28.6 billion subsidy for eligible restaurants. Termed the Restaurant Revitalization Fund (RRF), these funds are intended to help eligible restaurants offset revenue...more

Lathrop GPM

The Franchise Memorandum - Issue # 263

Lathrop GPM on

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

Winter Of Despair Followed By . . . A Spring Of Hope?

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Charles Dicken’s A Tale of Two Cities famously opens with “It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of...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

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