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
A Florida federal district court found that a doughnut franchisee's failure to pay royalties and other fees constituted a material breach of contract justifying termination, even though the franchisee expressed a willingness...more
On December 14, 2017, the National Labor Relations Board (Board) in Hy-Brand Industrial Contractors, Ltd., 365 NLRB No. 156 (2017) expressly overruled the divisive joint-employer standard adopted by Browning-Ferris...more
Some creativity can help in passing a former franchised business to the next generation, particularly if the franchisor has no part in the franchisee's succession plan.
A federal court in Nebraska preliminarily enjoined...more
A restaurant franchisor, World of Beer Franchising ("WOB"), recently lost an appeal to enforce a post-termination restriction against a franchisee launching a competing business. Both the trial and appellate court ruled...more
12/1/2017
/ Appeals ,
Dispute Resolution Clauses ,
Franchise Agreements ,
Franchisee ,
Franchises ,
Injunctive Relief ,
Mandatory Arbitration Clauses ,
Mediation ,
Non-Compete Agreements ,
Remedies ,
Restaurant Industry ,
Restrictive Covenants
Franchisors in the food service industry have until January 18, 2018 to comment on the latest version of the Food & Drug Administration’s Menu Labeling Guidance. The FDA released the draft November 7th. This version includes...more
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
Analysts predict robots may take nearly 40 percent of U.S. jobs – particularly the ones that require lower education levels – in the next 15-20 years. The study was released by PricewaterhouseCoopers, and was based on...more
Business owners looking to expand may leave themselves vulnerable to several obvious losses, including those related to finance, brand identity, and customer loyalty. Resources, including exemplary human resources, are...more
10/5/2017
/ Brand ,
Federal Trade Commission (FTC) ,
Franchise Agreements ,
Franchise Fees ,
Franchise Laws ,
Franchises ,
Intellectual Property Protection ,
License Agreements ,
Marketing ,
Sales & Distribution Agreements ,
Trademark Licenses ,
Trademarks
Franchising is so much more than casual burger chains with drive through windows and dollar menus. It’s an industry that incorporates a wealth of blue and white collar services; distributes both high- and low-end products...more
Rising concerns over food sourcing and preparation is leading to more and more litigation for restaurants and franchises.
Most of the lawsuits claim discrimination, which makes sense as many dietary strictures are rooted...more
9/5/2017
/ Americans with Disabilities Act (ADA) ,
Class Action ,
Disability Discrimination ,
Discrimination ,
Dunkin' Donuts ,
Franchise Agreements ,
Franchises ,
Gluten-Free ,
Little Caesars ,
PF Chang's ,
Rehabilitation Act ,
Religious Discrimination ,
Restaurant Industry ,
Section 504 ,
Title III
In January 2016, the National Labor Relations Board (NLRB) determined that indirect control or the reserved right to control, even if unexercised, could be sufficient grounds to find a joint employer relationship between a...more
Are we still in the dawn of the digital age, or have we moved on to mid-morning yet? Only time, and your company's web site and applications, will tell.
Unfortunately, when it comes to website accessibility, it is still...more
8/17/2017
/ Americans with Disabilities Act (ADA) ,
Disability Discrimination ,
Discrimination ,
Fast-Food Industry ,
Franchises ,
Grocery Stores ,
Public Accommodation ,
Title III ,
Web Content Accessibility Guidelines (WCAG) ,
Website Accessibility ,
Website Owner Liability ,
Websites ,
Winn-Dixie Stores
You’ve seen the news: retailers are struggling. Traditional anchor stores like Macy’s and Sears are closing up shop, creating a domino effect of fiscal death for shopping malls across the country. The Los Angeles Times...more
In Los Angeles Superior Court, McDonald's claimed victory when 6,600 workers seeking $41 million in back pay and penalties came away with less than 2% of the amount sought in a claim that the fast-food giant cheated them out...more
The parent of Dunkin' Donuts was named along with Starbucks and about 80 other coffee sellers, distributors and retailers in a 2010 lawsuit alleging violations of California's Proposition 65 and Safe Drinking Water and Toxic...more
California Prop 65 warnings – many residents barely notice these anymore, as we’ve lived with Safe Drinking Water and Toxic Enforcement Act notices for over 30 years now. They appear at gas pumps; in apartment and office...more
Direct control, indirect control…these are the employment litigation phrases that had franchisors cowering in duck-and-cover positions over the last few years. But the Department of Labor just issued a statement to breathe...more
For a relationship to meet the legal definition of a "franchise" in some jurisdictions, the franchisor must give significant assistance to, or have significant control over, the franchisee's business. A franchisor's...more
Among the many differences between Tesla and traditional automakers, Tesla does not sell or service its electric cars through franchised dealers; it sells direct to consumers. Recent legal challenges to Tesla's...more
The Canadian Broadcasting Corporation (CBC) recently aired a segment reporting that real chicken content in Subway sandwiches amounted to a lot less than what the average consumer would expect. The network commissioned DNA...more
An important part of the franchise system is the confidential operating manual. Many franchisors claim protection of operating manuals under the law of trade secrets and copyright.
Keeping the contents confidential is...more
11/2/2016
/ Breach of Contract ,
Confidential Business Information (CBI) ,
Copyright ,
Copyright Infringement ,
Copyright Registration ,
Franchises ,
Franchisors ,
Intellectual Property Protection ,
Operating Agreements ,
Policy Manuals ,
Popular ,
Trade Secrets
For more than 55 years, the International Franchise Association has been committed to improving methods and business practices for all participants in franchising - whether working with the Federal Trade Commission, lobbying...more
With franchisors deeply concerned about joint liability for franchisee employees, more states are passing laws trying to prevent that from happening. Here are some states and measures that have passed:
Texas enacted...more
Franchisees aren't always excited when their franchisor introduces a new policy. But if a new policy overreaches and might doom a franchisee's business, can it be stopped before it starts?...more
5/26/2016
/ Breach of Contract ,
Cell Phones ,
Franchise Agreements ,
Franchisee ,
Franchises ,
Franchisors ,
Irreparable Harm ,
Performance Incentives ,
Preliminary Injunctions ,
Royalties ,
Sales Commissions ,
Unfair or Deceptive Trade Practices ,
Unjust Enrichment