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Navigating Non-Compete Agreements: Key Considerations for In-House Counsel in Franchise Businesses

In May of last year, the Federal Trade Commission (FTC) sought to ban non-compete agreements in most employment contracts. Franchise agreements were an exception. However, before the rule could take effect in September, a...more

Louisiana Based Franchisor and Its Employees Cannot Avoid Personal Jurisdiction in Washington State

Washington-state based franchisees Greg and Gabriela Skistimas brought suit against Hotworx Franchising LLC in the U.S. District Court for the Western District of Washington alleging misleading and unfair practices related to...more

FTC’s Ban on Noncompete Agreements Is Blocked

The Federal Trade Commission’s efforts to ban noncompete agreements suffered a serious blow when a federal judge in Texas issued a nationwide injunction blocking the ban’s enforcement. Implementation of the ban could disrupt...more

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

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

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

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

FTC Considering Changes to Franchise Rule

For the first time in over a decade, the Federal Trade Commission is considering changes to its Franchise Rule. The Rule represents an effort by the Commission to prevent unfair and deceptive practices by franchisors against...more

Federal Court Denies Class Certification of 7-Eleven Franchisees in Misclassification Suit

A recent decision from a federal court in Massachusetts is a significant victory for franchisors who continue to face lawsuits alleging they have misclassified their franchisees as independent contractors rather than...more

Commercial Cleaning Franchise System Challenges SBA’s Determination of Eligibility for Paycheck Protection Program Loans Under...

Three members of the JANI-KING® franchise system filed suit last week in federal court in Washington, D.C. alleging that the United States Small Business Administration (the SBA) has discriminated against franchised...more

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