RECENT POSTS
Franchise 101: The Proof Is in the Writing; and Party Pauper
Franchisor 101: The Proof Is in the Writing Ten years after the franchisor of the EXIT real estate system entered into a franchise agreement for a franchisee to operate an EXIT franchise in Maitland, Florida,
Franchise 101: Enjoined in Margaritaville; and Personal Jurisdiction over Non-Resident Principal in Massachusetts
June 2019 Franchisor 101: Enjoined in Margaritaville Eskimo Hut, a franchisor of convenience stores that sell frozen daiquiris-to-go, convinced a Texas appellate court that it would probably win on claims that South Plains, a franchisee
Franchise 101: Franchisor Can Be “Employer” and Surviving Rejection
May 2019 Franchisor 101: Franchisor Can Be “Employer” The Ninth Circuit sent shockwaves through the franchise industry in ruling that last year’s California Supreme Court decision broadening who may bring wage misclassification claims (Dynamex v.
Franchise 101: Lessons in License Agreements; and Operation Philadelphia
April 2019 Franchisor 101: Lesson in License Agreements The U.S. Sixth Circuit Court of Appeals upheld summary judgment for franchisor Buffalo Wild Wings (“BWW”) rejecting a restaurant operator’s counterclaims for wrongful termination, malicious prosecution, and
Franchise 101: Termination Is Not Enforcement; and Precluding Competition
March 2019 Franchisor 101: Termination Is Not Enforcement A federal district court upheld an arbitration panel’s decision to deny attorneys’ fees to Benihana, even though Benihana won a dispute with its licensee. The licensee started
Full Disclosure: Periodic Review of FTC Franchise Rule
The Federal Trade Commission (FTC) seeks public comment regarding its Trade Regulation Rule entitled, “Disclosure Requirements and Prohibitions Concerning Franchising” (the “Rule”). The Rule has been in effect since 1979, and was last amended in
Franchise 101: Hot Doggin’ Franchisee Sales Pitches; and Un-Merry Maids
February 2019 Franchisor 101: Hot Doggin’ Franchisee Sales Pitches Hot dog franchisor, Charlie Graingers, was unable to obtain dismissal of a federal lawsuit brought by franchisees alleging fraud, misrepresentation and breach of fiduciary duty. The
Franchise 101: No Need for Good Cause; and Injunction A-Berted
January 2019 Franchisor 101: No Need for Good Cause A Wisconsin federal judge granted summary judgment in favor of a food service and cleaning equipment maker (“Stoelting”), ruling that minimum purchase requirements under two dealer agreements were not a
Franchise 101: Your Neighborhood Debtor; and Rules of the Road
December 2018 Franchisor 101: Your Neighborhood Debtor A bankruptcy court has found that Applebee’s failed to properly terminate its franchise agreements prior to the franchisee petitioning for bankruptcy. Therefore, the franchise agreements remained in effect and were
Franchise 101: New Revenue Recognition Rule; and Lifeline Franchise?
November 2018 Franchisor 101: New Revenue Recognition Rule for Initial Franchise Fees Most franchisors’ annual franchise registration renewal deadlines are a few months away. Nevertheless, franchisors should contact their accountants now regarding a new revenue