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
In June of 2022, McDonald’s obtained a judgment on the pleadings, ending antitrust litigation challenging the legality of the no-hire restraints it previously included in its franchise agreements. More than a year later, the...more
10/4/2023
/ Antitrust Litigation ,
Antitrust Provisions ,
Class Action ,
Employer Liability Issues ,
Employment Contract ,
Employment Litigation ,
Fast-Food Industry ,
Former Employee ,
Franchise Agreements ,
Hiring & Firing ,
Judgment on the Pleadings ,
McDonalds ,
No-Hire/No-Solicitation Agreements ,
No-Poaching ,
Restrictive Covenants ,
Sherman Act ,
Statutory Violations
Over the last 18 months, no-poach provisions in franchise agreements have drawn considerable attention from academics, state attorneys general, politicians, and the class action plaintiffs’ bar.
Originally published in...more
1/8/2019
/ Class Action ,
Competition ,
Employee Solicitation ,
Fast-Food Industry ,
Food Service Workers ,
Franchise Agreements ,
Franchisee ,
Franchises ,
Franchisors ,
Hiring & Firing ,
Jimmy John's ,
McDonalds ,
No-Poaching
In order to avoid a lawsuit by the Washington State Attorney General, seven fast-food chains with store locations nationwide agreed to no longer enforce “no-poach/no-hire” provisions in their franchise agreements and to...more
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
Agreements among companies to not hire each other’s workers are more risky than ever. The DOJ’s Assistant Attorney General for the Antitrust Division, Makan Delrahim, stated on January 19 that the division has criminal cases...more
4/5/2018
/ Antitrust Division ,
Antitrust Provisions ,
Antitrust Violations ,
Corporate Counsel ,
Employer Liability Issues ,
Enforcement Actions ,
Fast-Food Industry ,
Franchise Agreements ,
Franchises ,
Hiring & Firing ,
Joint Venture ,
Legislative Agendas ,
No-Poaching ,
Proposed Legislation
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
2/1/2018
/ Advertising ,
Breach of Contract ,
Contract Interpretation ,
Corporate Counsel ,
Fast-Food Industry ,
Franchise Agreements ,
Franchises ,
Franchisors ,
Intellectual Property Protection ,
Islamic-Compliant ,
Promissory Estoppel ,
Trademarks
In a recent win for franchisor 7-Eleven, Inc., the U.S. Court of Appeals for the Third Circuit upheld a New Jersey district court’s ruling that 7-Eleven properly terminated its franchise agreements for cause based on the...more
The Third Circuit’s decision is a pointed reminder to franchisors, as well as businesses that use independent contractors, that the form of their agreements can either serve their legal interests or harm them in employee...more
9/23/2016
/ Appeals ,
Class Action ,
Class Certification ,
Corporate Counsel ,
Employee Definition ,
Employer Liability Issues ,
FedEx ,
Franchise Agreements ,
Independent Contractors ,
Misclassification ,
Wage and Hour