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Franchisors Franchises Fast-Food Industry

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

Buchalter

The Slow Down Of The FAST Act: Monumental Deal Reached Which Could End Joint Employer Liability And Other Threats To The Franchise...

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On September 11, 2023, an unprecedented deal was announced by labor groups and the fast food industry which would give California workers a $20 minimum wage and repeal The Fast Food Accountability and Standards Recovery Act...more

Littler

Hot Take(out): California Fast Food Franchises Could Face Increased Liability

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It’s been a busy spring at the California state capitol.  Among the few thousand bills being considered by California’s legislature this year, AB 1228 stands out.  The bill would essentially create joint liability for...more

Fox Rothschild LLP

FAST Act Shrapnel: AB 1228 redefines the franchise relationship

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The FAST Act is in limbo pending the outcome of a California ballot repeal initiative. Undaunted, the Legislature has excised key provisions of that Act and positioned them for separate enactment as AB 1228, introduced by...more

ArentFox Schiff

California Bill Would Make Fast-Food Franchisors Liable for Franchisees' Violation of Wage Law

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California Assembly Bill 1228 (A.B.1228), otherwise known as the Fast-Food Franchisor Responsibility Act, was introduced on February 16, 2023. If passed into law, fast food restaurant franchisors and franchisees will share...more

Buchalter

Staying in the FAST Lane: An Overview of New 2023 Employment Laws for California Franchisors and Franchisees

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Each New Year in California comes with several new laws that impact the workplace, including those in the franchising industry. With each year that passes, the California Legislature reminds us that their intent is to provide...more

Fox Rothschild LLP

California’s Tectonic Plates Shift — Part III

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And so we come to the ultimate affront to franchising. Responding to strong lobbying efforts by the Service Employees International Union (SIEU), the California legislature passed the Fast Food Accountability and Standards...more

Fox Rothschild LLP

Think FAST: California Enacts Fast Food Accountability and Standards Recovery Act

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On Labor Day, with support from prominent unions, California Gov. Gavin Newsom signed the Fast Food Accountability and Standards Recovery Act (FAST Recovery Act), which will significantly affect fast-food restaurants in the...more

Lathrop GPM

Global Franchise Regulation Update - March 2022

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New Standard Contract Language for Data Transfers Facilitates Lawful Personal Data Transfers to/from EU and U.S. - In response to the EU Court of Justice Schrems II opinion, which declared that the former EU-US Privacy...more

Lewitt Hackman

California Fast Food Workers March to Support Anti-Franchisor Legislation

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According to the Los Angeles Times, fast-food workers at McDonald’s restaurants in Los Angeles, Oakland, Sacramento, San Diego and San Jose intend to walk off their jobs on November 9 in support of the passage of California...more

Ervin Cohen & Jessup LLP

FAST Act (AB-257) Narrowly Defeated

On June 3, 2021, AB-257, the Fast Food Accountability and Standards Recovery Act (the “FAST Act”) was defeated in the California Assembly, coming up three votes short of the 41 votes needed. The FAST Act would have...more

Lewitt Hackman

A Reprieve for Franchise Business Model in California

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California Assembly Bill 257, the Fast Food Accountability and Standards Recovery Act (FAST Recovery Act or AB 257) was defeated by the California Assembly on June 3, 2021. The bill was introduced by Assembly Member Lorena...more

Lewitt Hackman

Impending Doom for Franchise Business Model in California?

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California Assembly Bill 257, the Fast Food Accountability and Standards Recovery Act is currently pending in the California Legislature, introduced by Assembly Member Lorena Gonzalez....more

Lathrop GPM

The Franchise Memorandum - Issue # 263

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Illinois Federal Court Excludes Plaintiffs’ Expert Testimony on Certification Motion in Anti-Poaching Class Action - A federal court in Illinois granted Jimmy John’s motion to exclude expert testimony of a putative class...more

FordHarrison

One Small Win for McDonald's, and One Giant Victory for Small Business Owners

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On Thursday, December 12, 2019, the National Labor Relations Board (NLRB or the Board) ordered an administrative law judge to approve a settlement previously reached between McDonald’s, its franchisees, and workers. Although...more

Bradley Arant Boult Cummings LLP

McDonald’s Fries Franchise Workers’ Claims, Lands Whopper of a Ruling for Franchisors

In an important wage-and-hour decision for franchisors, Salazar, et al. v. the McDonald’s Corp., et al., the Ninth Circuit Court of Appeals ruled that employees of one of the hamburger giant’s California-based franchisees...more

Fox Rothschild LLP

Franchising In The Smart Home Era

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In the near future, customers will likely be ordering their fast food through their smart home devices, such as Amazon’s Alexa or Google Home. Gary Vaynerchuk, chairman of VaynerX, a modern-day media and communications...more

Skadden, Arps, Slate, Meagher & Flom LLP

No-Poach Update: DOJ Seeks to Rein In Franchise Suits

Evolving antitrust treatment of so-called “no-poach” agreements continues to offer important guidance for company counsel and human resources professionals. Over the past two years, the Department of Justice (DOJ) has...more

Troutman Pepper Locke

Legal Challenges to No-Poach Provisions in Franchise Agreements

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Over the last 18 months, no-poach provisions in franchise agreements have drawn considerable attention from academics, state attorneys general, politicians, and the class action plaintiffs’ bar. Originally published in...more

Polsinelli

NLRB Judge Rejects Proposed Settlement In McDonald’s Joint Employer Case

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On July 17, 2018, a National Labor Relations Board (“Board”) Administrative Law Judge (“ALJ”) rejected a proposed settlement that would have concluded the closely-watched consolidated unfair labor practice case against...more

Troutman Pepper Locke

Federal Court Reinforces That Franchisors Should Control Advertising to Ensure Uniformity

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An Illinois federal judge recently found that a franchisor has the absolute right to control its franchisees’ advertising of the products and services offered under a franchise. Lokhandwala v. KFC Corp., No. 17-cv-6394 (N.D....more

Ballard Spahr LLP

Subway, DOL Partner to Improve FLSA Compliance

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Last week, the Subway restaurant chain entered into a landmark partnership with the U.S. Department of Labor (DOL) aimed at improving Fair Labor Standards Act (FLSA) compliance among the chain's 27,000 franchisees. The DOL...more

Seyfarth Shaw LLP

Should Franchisors Become BFFs with WHD?

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Expanding upon a relationship started in 2012, the U.S. Department of Labor’s Wage & Hour Division and Subway announced a voluntary compliance agreement earlier this week. Billed as an effort at increasing Subway’s social...more

Holland & Knight LLP

Food and Beverage Law Update: October 2015

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Labor and Employment - Plaintiff Wage and Hour Lawsuits Continue to Climb - Wage and hour litigation has become what some call the new "workplace revolution." Data from the Federal Judicial Center indicates that...more

Fisher Phillips

The Evolving Definition of Joint Employers

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The National Labor Relations Board and various union-backed organizations are ratcheting up efforts aimed at changing the landscape of who qualifies as a joint employer. Right now, these aggressive efforts are most pronounced...more

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