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Franchisor Best Practices for COVID-19 (Updated #2)

A Message Regarding Racial Inequality: Faegre Drinker is deeply affected by the disturbing and terrible events surrounding the senseless deaths of George Floyd, Breonna Taylor, Ahmaud Arbery and Rayshard Brooks. While these...more

Franchisor Best Practices for COVID-19 (Updated)

With COVID-19 changing everything we do in our personal and business lives, franchisors are faced with all the same challenges as other businesses, but also several unique twists due to the nature of franchising. Franchising...more

"ABC" Employment Test Imposed on Franchising in California; Better News on the Joint Employment Front

California Gov. Gavin Newsom signed Assembly Bill 5 (AB-5) on September 18, 2019, which adopts the “ABC test” for certain California employment laws. Soon after, on September 24, 2019, the U.S. Court of Appeals for the 9th...more

9th Circuit Puts Brakes on Joint Employment Claims

Companies doing business in California and elsewhere scored a victory yesterday in one of the fastest growing areas in employment law: joint employment claims. In a significant opinion, the U.S. Court of Appeals for the 9th...more

Ninth Circuit Bolsters Franchisee Wage Misclassification Claims Against Franchisors

On May 2, 2019, the Ninth Circuit issued a ruling that has wide implications for California franchisors who rely on independent contractor relationships. In a unanimous decision, the Ninth Circuit held that the more rigid ABC...more

The Race to Change the NLRB's Joint Employer Standard Is Over. And the Winner Is . . .

After the National Labor Relations Board (NLRB) changed its joint employer standard in August 2015, two likely avenues to repeal that change emerged: Congress and the courts. In September of that year, congressional...more

Game-Changing Developments Threaten Franchise Business Model

The National Labor Relations Board (NLRB) and Service Employees International Union (SEIU) have been coordinating attacks on the franchise business model. These activities were a primary focus for all attendees at the May...more

NLRB Office of General Counsel Alleges Franchisor Is Liable for Claims of Its Franchisees' Employees

On December 19, 2014, the National Labor Relations Board's (NLRB) Office of General Counsel took another step forward in its effort to erase the line between franchisors and franchisees. In a controversial move, the Office of...more

Ninth Circuit Weighs in on When Franchisors May Be Liable for Franchisees' Unlawful Text Messaging Campaigns

In Thomas v. Taco Bell Corp.,[3] a franchisee association planned a promotion in which text messages were sent to 17,000 people in the Chicago area to promote a local sweepstakes contest. The lower court dismissed the case...more

Landmark Ruling: Franchisor Not Liable Absent Employment Related Control

On August 28, 2014, the California Supreme Court issued a landmark ruling in favor of Domino's Pizza and all business format franchisors that do business in California. In Patterson v. Domino's Pizza, LLC, ---P.3d---, 2014 WL...more

NLRB Office of General Counsel: Franchisors May Be Liable for Franchisees' Employment Practices

In a decision with potentially far-reaching consequences for the franchise industry, the National Labor Relations Board's (NLRB) Office of General Counsel decided on July 29, 2014, that it will require McDonald's USA, LLC...more

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