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Federal Trade Commission (FTC) Franchises Franchisors

Fox Rothschild LLP

Franchisors, Take Notes: New Developments and Compliance Process for the 2025 SBA Franchise Director

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The SBA Franchise Directory is officially back online from June 1, 2025, and with it comes a series of critical updates for franchisors and franchisees discussed in the virtual briefing led by Stephen Olear, Senior Franchise...more

Fox Rothschild LLP

Non-Competes Under the Microscope: NASAA’s Latest Guidance for Franchisors

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Recently, the North American Securities Administrators Association, Inc.’s (“NASAA”) Franchise and Business Opportunities Project Group (“FPG”) issued guidance on post-term non-compete clauses in the context of the franchise...more

Foley & Lardner LLP

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

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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

Lewitt Hackman

NASAA Guidance for Franchise Non-Competes

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Last May, the Federal Trade Commission looked to ban non-compete agreements in most employment contracts aside from franchise agreements. Although scheduled to become effective in September, a federal court vacated the ruling...more

Foley & Lardner LLP

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

Foley & Lardner LLP on

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

Morgan Lewis

FTC Expands Its Focus on Franchising Regulation with New Policy Statement and Staff Guidance

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The Federal Trade Commission (FTC) on July 12, 2024 released a policy statement warning that the use of contract provisions that prohibit franchisees from communicating with the government about legal violations are unlawful....more

Orrick, Herrington & Sutcliffe LLP

FTC reminds industries of its enforcement of the Franchisee Rule

On July 12, the FTC released a new policy statement, staff guidance, and an issue spotlight about allegedly unfair and deceptive practices by franchisors. The policy statement addressed the FTC’s concerns that franchisees...more

Lathrop GPM

FTC Takes Action Impacting the Franchise Relationship

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On Friday, July 12, 2024, the Federal Trade Commission (“FTC”) published an analysis of the information it received in response to its Request for Information related to  franchisors’ business practices, launched in March...more

Troutman Pepper Locke

The FTC Intervenes in Franchise Relationships

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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

Skadden, Arps, Slate, Meagher & Flom LLP

FAQs About the FTC’s Broad New Ban on Noncompetes

When the Federal Trade Commission (FTC) issued its long-awaited final rule banning virtually all noncompete clauses between workers and employers, it also published 500-plus pages of commentary....more

Polsinelli

What is the Impact of the FTC’s Final Non-Compete Rule on Franchisors and Franchisees?

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As explained in Polsinelli’s prior alert of April 24, 2024, the FTC announced its final rule on non-compete covenants (the “Rule”) on April 23, 2024. Critically, the Rule does not prohibit non-compete agreements between...more

UB Greensfelder LLP

FTC Issues Rule Prohibiting Non-Competes

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On April 23, 2034, the Federal Trade Commission (FTC) issued a final rule intended to ban the use and enforcement of most non-compete clauses signed by workers. The new rule is not in effect yet. It will become...more

Fox Rothschild LLP

Court Grants nearly $49 Million Default Judgment Against Burger Franchisor in First FTC Franchise Lawsuit in over a Decade

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A federal district court recently granted the United States’ Motion for Default Judgment against the quick-service burger restaurant franchise concept, Burgerim Group USA, Inc. and its owner (“Burgerim”). The Federal Trade...more

Fox Rothschild LLP

Is it time to Franchise My Business – Part I?

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You are an entrepreneur. You created, founded and currently operate a successful and vibrant business. Perhaps customers, family members, or friends are loyal fans of your brand and are approaching you with a request to...more

Lathrop GPM

Seventh Circuit Reverses Dismissal of Anti-Poaching Class Action Against McDonald’s

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In an important case of first impression that drew amicus participation from the Department of Justice, the Federal Trade Commission, and the International Franchise Association, the Seventh Circuit reversed a judgment in...more

Ward and Smith, P.A.

Commentary on Franchising Myths from the FTC

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Drive down almost any busy street, and you'll see numerous examples of well-known franchises, from McDonald's to Ace Hardware. You may have considered opening a franchise and wondered about the potential rewards and...more

Foley & Lardner LLP

“If It’s Not Broken, Don’t Fix Break It”— The FTC Targets the Franchise Business Model

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Historically, the Federal Trade Commission (FTC) has shied away from regulating the substance of franchisor-franchisee relationships. A recent FTC press release, however, suggests this may soon change. If so, it is by no...more

Polsinelli

FTC Turns Its Attention to Franchising

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On Friday, March 10, 2023, the Federal Trade Commission issued a Request for Information (“RFI”) soliciting public comments on various issues pertaining to the franchisor-franchisee relationship, including franchisor supply...more

Mintz - Antitrust Viewpoints

Federal Trade Commission Continues Policy Initiatives by Seeking Public Comment on Franchisor-Franchisee Relationships

The Federal Trade Commission on Friday announced a Request for Information regarding “franchise agreements and franchisor business practices, including how franchisors may exert control over franchisees and their workers.”...more

Fox Rothschild LLP

Is a National Program for Franchise Broker Registration Coming and Other Franchise Broker Tips & Takeaways

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I had the pleasure this year along with fellow franchise attorneys, Gerry Wells of Rita’s Franchise Company and Allan Hillman of Garcia & Milas, to present at the ABA Forum on Franchising Annual Meeting in San Diego. The...more

Morgan, Brown & Joy, LLP

Massachusetts Supreme Judicial Court’s Franchise Decision May Create Compliance Challenges for Commonwealth Franchisors

On March 24, 2022, the Massachusetts Supreme Judicial Court (“SJC”) held that the Commonwealth’s independent contractor test applies to the franchisee-franchisor relationship. In Patel v. 7-Eleven, Inc., the Court found that...more

Fox Rothschild LLP

Tips for Enforcing that Mediated Franchise Settlement Agreement

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Mediation is very effective in resolving disputes. Franchisors are enthusiastic about mediation, especially pre-suit, because it can eliminate the need to disclose settlements to prospective franchisees otherwise required...more

Lewitt Hackman

The Assault on Franchising Continues

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In the last year, we reviewed three attacks on franchising, questioned whether franchising was in the crosshairs of federal regulators and legislators, and concluded that the answer was yes....more

McAfee & Taft

Franchising cannabis businesses

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Since the adoption of state legal medical marijuana in Oklahoma in 2018, commercial licenses in the industry have proliferated. Many prospective licensees lack the relevant cannabis experience to fully develop their business...more

Lewitt Hackman

Franchising Attacked Again

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Earlier this year, we questioned whether franchising was in the crosshairs of federal regulators and legislators. It appears that the answer may be a resounding yes....more

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