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Franchise 101: A Sticky Situation; and Expo Is No Excuse
Franchisor 101: A Sticky Situation A federal court in Maryland entered default judgment and a permanent injunction in favor of an ice cream franchisor against a franchisee that continued operating its ice cream shop after
Franchise 101: Not at Liberty to Compete; and Bar-B-Q Blues — A Tale of Friendship, Partnership, and Deceit
FRANCHISOR 101: Not at Liberty to Compete A federal district court in Michigan granted a preliminary injunction in favor of tax preparation franchisor, Liberty Tax Service (JTH Tax, Inc. v. Magnotte, E.D. Mich., ¶16,575), finding
Franchise 101: Joint Employer Wars (The Final Episode?); and The (Ice Cream) Cart Before the Rescission
Franchisor 101: Joint Employer Wars (The Final Episode?) Last month, the National Labor Relations Board (NLRB) issued a final rule governing joint-employer status under the National Labor Relations Act (NLRA). The rule should resolve years
Franchise 101: Romaine Rejection; and A Franchisor Without Urgency
Franchisor 101: Romaine Rejection Many will recall the 2018 national outbreak of E. coli bacteria linked to romaine lettuce. In April that year, an Ohio franchisor ordered its restaurants to stop serving romaine lettuce and
Franchise 101: Wrong Tools to Avoid California Courts; and Don’t Terminate the Hand That Delivers Your Pizza
Franchisor 101: The Wrong Tools to Avoid California Courts The Ninth Circuit ruled that a California Matco Tool franchisee, John Fleming, could bring a class action wage and hour suit in California, even though a
Franchise 101: Open Season for Poaching in Washington; and Corralled Franchise Claims
Franchisor 101: Open Season for Poaching in Washington 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
Forum Selection Clause Gone Wrong; and Indemnification Woes
Franchisor 101: Forum Selection Clause Gone Wrong A California Court of Appeal held that courts should not enforce forum selection clauses in contracts that also contain a jury waiver. For franchisors that have California franchisees,
California AB 5; and Differences Between Franchises and Other Business Arrangements
California Assembly Bill 5 (2019) California Governor Gavin Newsom signed into law Assembly Bill 5 (“AB-5”). AB-5 codifies into California’s Labor Code the “ABC test” for determining employee or independent contractor status, as adopted by
Franchise 101: Dickey’s Arbitration Pit; and If It Walks Like a Franchise…
Franchisor 101: Dickey’s Arbitration Pit A federal appeals court upheld a lower court’s refusal to order arbitration against a franchisee who bought an existing franchise. This was despite a provision in the franchise agreement to
Franchise 101: Don’t Interfere With Beer; and Over Supply of Gasoline Burns Potential Sale
Franchisor 101: Don’t Interfere With Beer The Mississippi Supreme Court ruled that a beer manufacturer’s “match and redirect” provision in an agreement with a wholesaler violated the state’s Beer Industry Fair Dealing Act (BIFDA). Anheuser-Busch’s