Franchise Agreements are typically drafted by the franchisor and presented on a “take it or leave it” basis. These contracts often impose strict controls over how you operate your business — from approved vendors and...more
A California federal court denied a motion to dismiss a former franchisee’s complaint against a healthcare recruitment franchisor’s Chief Executive Officer....more
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
The U.S. Small Business Administration reinstated the Small Business Administration (SBA) Franchise Directory on June 1, 2025, reversing the 2023 decision to sunset the program. The Directory has long been the primary...more
A federal court in California recently declined to dismiss a former franchisee’s suit against Nadia Gruzd, the CEO and COO of AllMed Search, a healthcare recruitment franchise system. Pasture Gate Holdings, Inc. v. Gruzd,...more
A positive development for franchise systems seeking to streamline the SBA loan approval process for their franchisees is coming this summer. The new version of the SBA Loan Origination Policies and Procedures for Lender and...more
January officially starts the “Franchise Disclosure Document (“FDD”) Update Season”. And for franchise lawyers that focus on representing franchisors in the development of FDDs and related tasks, it is arguably the most...more
A franchisor may pursue claims for declaratory and injunctive relief for potential trademark infringement against a former prospective franchisee even though the prospect never actually used the marks in question. Grainier...more
The FTC administers the federal franchise sales law, which requires all franchisors engaged in franchise sales in the United States to deliver a franchise disclosure document (FDD) to their prospective franchise buyers unless...more
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
A bill passed by the California Senate on May 22, 2024, Senate Bill No. 919 (“Bill 919”), will address a gap in the regulation of franchise sales – namely, a lack of transparency regarding the role and background of...more
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
The Securities Division of the Indiana Secretary of State issued a press release this week announcing that it filed an administrative complaint against Florida based Mac and Cheese Franchise Operations LLC and its parent...more
A Tennessee federal district court granted a franchisee’s request for a preliminary injunction to prevent the franchisor from enforcing noncompete restrictions under the franchise agreement while the franchisee litigated its...more
A federal court in Illinois recently granted partial summary judgment to LMLC Franchising, LLC (LMLC-F), LMLC Management, LLC (LMLC-M), and Todd Barnhardt on claims brought by John Doe and Aylin & Ramtin, LLC (A&R) for breach...more
Are you a small business owner who has considered franchising your business? Franchising can be a great way to expand your company's physical presence, grow your revenue, and increase your brand recognition....more
Attorneys representing Latin American brands in the United States should understand that entry into the US market requires careful strategy, planning and due consideration for the variety of legal issues that arise from...more
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
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
Federal law requires franchisors to update their franchise disclosure documents (“FDD”) within 120 days after their fiscal year end (“FYE”). State registrations must also be renewed annually. Here are ten best practices for...more
The North American Securities Administrators Association (NASAA) recently adopted a statement of policy that will limit the use of Questionnaires and Acknowledgements in Franchise Disclosure Documents (FDDs) and franchise...more
A poke restaurant franchisee in Ohio sued the franchisor for violation of the California Franchise Investment Law (CFIL) and other claims. The franchisor defendants moved to dismiss the claims. A California federal court...more
This fall we posted about the North American Securities Administrators’ (NASAA) adoption of a Statement of Policy Regarding the Use of Franchise Questionnaires and Acknowledgments (the “SOP”). Technically, NASAA’s SOP...more
On November 3-4, 2022, at the American Bar Association’s 45th Annual Forum on Franchising, Marc A. Lieberstein, Partner at Kilpatrick Townsend, and Lee Plave, Partner at Plave Koch PLC, presented Coming To America: So You...more
When a business is deciding to franchise its concept, the task “to-do” list is never-ending. Identifying the most critical issues and deciphering what are “necessities” vs. “nice-ities” for an emerging brand was the topic of...more