News & Analysis as of August 16, 2025

Franchisors

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Hiring & Firing refers to the process of recruiting, interviewing and offering employment and the process of evaluating performance and dismissing employees. Hiring & Firing is a highly regulated area and can create tremendous liability for employers who fail to properly adhere to acceptable employment practices. Some of the potential pitfalls in this area stem from discriminatory hiring practices, improper performance evaluations, and retaliatory firings. less -

Franchisor 101: Duty of Care

Lewitt Hackman on 6/27/2025

The Texas Supreme Court reversed a lower court’s decision against a franchisor based on a theory of negligence after a customer was assaulted by an employee of the franchisee. The court concluded that franchisor did not owe a...more

7-Eleven Franchisees Are Not Employees Under Massachusetts Law: 5 Tips to Ensure Compliance After Latest Ruling

Fisher Phillips on 10/1/2024

The Massachusetts Supreme Judicial Court (SJC) just delivered a win for franchisor-franchisee relationships. Specifically, the court held that 7-Eleven franchisees are not performing a “service” for their franchisor, meaning...more

Franchisor 101: Joint Employer? Check √

Lewitt Hackman on 5/1/2024

A Maryland federal district court denied a restaurant franchisor’s motion to dismiss, concluding that a restaurant manager at a franchised location alleged sufficient facts to support a finding that the franchisor is a joint...more

Franchisor 101: Franchisor Cannot Massage its Way Out of Vicarious Liability

Lewitt Hackman on 12/1/2023

A Texas court of appeals affirmed judgment in favor of a plaintiff who claimed a franchisor was vicariously liable for a franchisee’s employee’s wrongful conduct....more

7-Eleven Franchise Owners Not Deemed Employees Under Massachusetts Law

Fisher Phillips on 10/26/2022

A federal court recently ruled that 7-Eleven franchise owners are not employees of the franchisor, the latest development in a long-running legal saga challenging their status as independent contractors. However, this...more

Franchisor 101: All the King’s Poachers

Lewitt Hackman on 9/30/2022

A federal appellate court held that Burger King and its franchisees may violate Section 1 of the Sherman Act (antitrust) by engaging in concerted action when entering into “no-hire” agreements. The appellate court reversed...more

Massachusetts SJC Holds that Independent Contractor Statute Applies to Franchisees

Partridge Snow & Hahn LLP on 4/1/2022

On March 24, 2022, the Massachusetts Supreme Judicial Court (“SJC”) determined that the Massachusetts independent contractor statute (G. L. c. 149, § 148B) applies within the franchisor-franchisee context and does not...more

Franchisor 101: Court Delivers for Pizza Franchisor

Lewitt Hackman on 2/1/2022

A Texas appeals court affirmed a lower court judgment in favor of Pizza Hut and its franchisee for claims of an alleged sexual assault by a delivery driver. The appellate court held Pizza Hut was not liable for the...more

Franchisor 101: Open Season for Poaching in Washington

Lewitt Hackman on 12/20/2019

Washington State’s Attorney General settled a case against sandwich franchisor, Jersey Mike’s, over antipoaching provisions in its franchise agreements. Since 2018, Washington State has made agreements with more than 60...more

Just Signed! New Washington State Law Limits Use Of Non-Competes And No-Poach Agreements

Fox Rothschild LLP on 5/10/2019

Yesterday, Washington’s Governor, Jay Inslee signed HB1450 [PDF] which targets the use of restrictive covenants in the State of Washington (the “Non-Compete Act”). The signing of the Non-Compete Act follows the recent...more

A Fresh Approach to No-Poach Provisions in Franchise Agreements

Akin Gump Strauss Hauer & Feld LLP on 4/2/2019

• The Antitrust Division of the Department of Justice (DOJ) and the Federal Trade Commission (FTC) have indicated in the past that they believe that certain agreements between employers not to poach each other’s employees are...more

The Latest: DOJ Distinguishes ‘No-Poach’ Agreements

McDermott Will & Schulte on 3/15/2019

WHAT HAPPENED: • The Department of Justice filed a Statement of Interest in three related cases in the Eastern District of Washington yesterday dealing with alleged “no-poach” (or non-solicitation) agreements between...more

Legal Challenges to No-Poach Provisions in Franchise Agreements

Troutman Pepper Locke on 1/8/2019

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

Spotlight on No-Poach Agreements Continues, Expands to New Industries

Skadden, Arps, Slate, Meagher & Flom LLP on 10/18/2018

In recent weeks, Washington State Attorney General Bob Ferguson has continued to expand his efforts to eradicate the use of no-poach agreements by employers. The targets of his investigation are companies that have included...more

The State AG Report Weekly Update July 2018 #1

Cozen O'Connor on 7/13/2018

Breaking News- Washington Attorney General Reaches Settlement with Seven Fast Food Franchisors Over “No Poach” Provisions in Franchise Agreements- Washington AG Bob Ferguson announced settlements with Arby’s Franchisor,...more

The NLRB Refuses to Require its General Counsel to Explain the Joint Employer Case Against McDonald's

Littler on 8/18/2015

The National Labor Relations Board continues the string of controversial moves in its unfair labor practice cases against McDonald’s. In December 2014, the NLRB’s General Counsel filed thirteen complaints naming the...more

Aching Joints: Franchisor Avoids Liability for Franchisee's Labor Disputes

Hinshaw & Culbertson LLP on 5/20/2015

Any time an employer is involved in a franchise relationship, there are bound to be unique issues when legal disputes arise, particularly in the employment context. It is no longer surprising to see the names of any and all...more

Franchisor Liability for Franchisee Employment Decisions: The NLRB's General Counsel Addresses the Move to Expand the...

Baker Donelson on 12/23/2014

In July 2014, the National Labor Relations Board (NLRB) took the unexpected step of authorizing complaints against McDonald's USA, LLC and some of its franchisees for the franchisees' responses to employee protests. The Board...more

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