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Franchise Updates

Read need-to-know updates, commentary, and analysis on Franchise issues written by leading professionals.
Lathrop GPM

New Jersey Federal Court Enters Default Judgment Against Franchisee, Awards Franchisor Liquidated Damages

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A federal court in New Jersey recently entered default judgment against franchisee Nisha Investments, LLC and its guarantor Rajesh Patel arising from their early termination of a franchise agreement with La Quinta...more

Lathrop GPM

Arizona Federal Court Dismisses Franchisee’s Defamation Counterclaims Against Franchisor

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A federal court in Arizona recently dismissed a franchisee’s counterclaims for breach of contract, defamation, and injunctive relief against its former franchisor. LeTip World Franchise LLC v. Long Island Soc. Media Grp. LLC,...more

Lathrop GPM

California Federal Court Enforces Hotel Franchisor’s Arbitration Provision and Compels Arbitration

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A federal court in California recently granted a franchisor’s motion to compel arbitration and stay the lawsuit in a dispute alleging breach of contract, breach of the implied covenant of good faith and fair dealing, and...more

Lewitt Hackman

Service Franchisors: New Rules in California for Automatic Renewals July 1st

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From streaming services and gym memberships to software vendor agreements and e-commerce franchises, automatic contract renewals are common occurrences. Currently, California law protects consumers regarding automatic renewal...more

Fox Rothschild LLP

Franchise Times Dealmakers Predict Cloudy Forecast for Franchise M&A in 2025

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Last month, Franchise Times held its annual “Dealmakers Week” where it offers a series of webinars with top franchise dealmakers to discuss the year’s biggest franchise deals and industry trends. The week included a...more

Proskauer - Tax Talks

California FTB Releases Updated Proposed Regulations on Market-Based Sourcing Rules

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On May 20, 2025, California’s Franchise Tax Board (“FTB”) released changes to the proposed regulations (“Draft Regulations”) that would amend the rules regarding market-based sourcing for sales other than sales of tangible...more

Lewitt Hackman

Franchisee 101: Handle Profit Projections With Care

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A New York federal court denied a franchisor’s motion to dismiss a franchisee’s complaint for misrepresentations and improper financial performance representations which allegedly induced the franchisee to enter into multiple...more

Foley & Lardner LLP

Keep Wining: Franchise Statute Opens Door to Protections for Missouri Wine Distributor

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The Eighth Circuit recently applied a novel, broad reading of the Missouri Franchise Act granting franchise protection to distributors which previously would not likely have been considered franchisees....more

Lewitt Hackman

Franchisor 101: Farsighted Vision for System Changes

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An Ohio federal court granted a franchisor’s motion to dismiss a putative class of franchisees alleging antitrust violations and related claims, including interference to deflate franchisees’ reimbursement rates. Other class...more

Wiley Rein LLP

Privacy, AI, and Consumer Protection Takeaways from FTC Chairman’s House Testimony

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FTC Chairman Andrew Ferguson testified before the House Appropriations Committee’s Financial Services and General Government Subcommittee on May 15 to discuss the agency’s consumer protection and competition efforts and...more

Williams Mullen

2025 Alcohol Law Changes Brewing in North Carolina

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The North Carolina General Assembly is considering various alcohol bills during the long 2025 session. Proposed changes include legalizing happy hour, authorizing Sunday sales by ABC stores, clarifying special one-time...more

Fox Rothschild LLP

Texas Supreme Court Reverses Liability Finding Against Franchisor

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A recent Texas Supreme Court decision fully overturned a jury’s finding that a franchisor was liable for the criminal actions of a franchisee’s employee. This decision underscores the importance of a franchisor having clearly...more

Akerman LLP

Leisure Law Insider (Vol. 6) - Spring 2025

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Welcome to the fifth edition of The Leisure Law Insider! Released quarterly, we cover the latest news and developments in leisure and hospitality law, regulation, and policy. Expect content on hotels, franchising, labor and...more

Mandelbaum Barrett PC

Spotlight on Hotel Comfort Letters

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A hotel comfort letter is a document issued by a hotel franchisor to a lender when a hotel owner (the borrower) seeks financing. It provides the lender with assurances about the relationship between the franchisor, borrower,...more

Fox Rothschild LLP

Franchise Enforcement Trends: Are States Cracking Down on Non-Compliance?

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If you think franchise compliance is just a box to check, think again. As part of my presentation on Annual Developments in Franchise Law at the most recent ABA Forum on Franchising Annual Meeting, I did a deep dive into...more

Fox Rothschild LLP

Hot Topics & Higher Prices: Tariffs Take the Stage at IFA Legal Symposium

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Tariffs may seem like a headline reserved for economists and politicians, but at last week’s International Franchise Association (IFA) Legal Symposium in Washington D.C., they were front and center in nearly every room. From...more

Polsinelli

Landmark Texas Supreme Court Case Finds No “Direct Liability” for Franchisor Arising Out of Franchisee Employee’s Actions

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On May 2, 2025, the Texas Supreme Court reversed a Texas Court of Appeals’ decision that had affirmed a jury’s verdict finding a franchisor directly liable to the customer of a franchisee for actions undertaken by the...more

Foley & Lardner LLP

DOL Alters Enforcement Position on Independent Contractors: What Does It Mean For Manufacturers and Franchisors?

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On May 1, 2025, the Wage and Hour Division (“WHD”) of the U.S. Department of Labor (“DOL”) issued a Field Assistance Bulletin stepping back from a restrictive independent contractor rule issued under the Biden...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

New York State Senate Bill Would Make Fast-Food Franchisors Jointly and Severally Liable for Certain Labor Law Violations

On April 8, 2025, the New York State Legislature took up Senate Bill S7289, which, if enacted, would amend the New York Labor Law (NYLL) by adding a new article 35-A, otherwise known as the “New York State Fast Food...more

Foley & Lardner LLP

DOL Alters Enforcement Position on Independent Contractors

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On May 1, 2025, the Wage and Hour Division (WHD) of the U.S. Department of Labor (DOL) issued a Field Assistance Bulletin stepping back from a restrictive independent contractor rule issued under the Biden administration — a...more

Akerman LLP

SBA Franchise Directory Returns June 2025 with New Certification Rules

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The U.S. Small Business Administration confirmed this week that it will reinstate the SBA Franchise Directory on June 1, 2025, reversing the 2023 decision to sunset the program. The Directory has long been the primary...more

Whiteford

Client Alert: SBA Issues SOP 50 10 8: Key Changes Impacting SBA 7(a) Lending

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On April 22, 2025, the U.S. Small Business Administration (“SBA”) released Information Notice 5000-866746, announcing the issuance of SOP 50 10 8 (“SOP”) (found here), which introduces significant changes to the SBA 7(a) loan...more

Foley & Lardner LLP

SBA Franchise Directory Reinstated, Easing Loan Access for Franchisees

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Effective June 1, 2025, the U.S. Small Business Administration (SBA) will reinstate its Franchise Directory, a critical development for franchise systems and franchisees seeking SBA financing. Originally launched in 2018 and...more

Lathrop GPM

Ohio Federal Court Dismisses Franchisees’ Class Action Against Luxottica

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A federal court in Ohio dismissed a putative class action brought by franchisee-eyewear sellers against their franchisor, Luxottica of America. Brave Optical, Inc. v. Luxottica of Am. Inc., 2025 WL 962827 (S.D. Ohio Mar. 31,...more

Lathrop GPM

California Federal Court Dismisses Putative Class Action Against Dunkin’ Defendants for Lack of Jurisdiction

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A federal court in California recently dismissed a putative class action by two Dunkin’ customers alleging customers were illegally charged a “dine-in fee, or other hidden fee.” Taferner v. Inspire Brands, Inc., 2025 WL...more

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