RECENT POSTS
Franchise 101: (Non)Competing for Care; and COVID-19 Defense Leads to Contempt
Franchisor 101: (Non)Competing for Care A U.S. Court of Appeals upheld a federal district court decision partly granting a preliminary injunction sought by a companionship and domestic care services franchisor against a former franchisee, for
Competing Tests: Employee or Independent Contractor? Saving the Franchise Model
Assembly Bill 5 took effect in California on January 1, 2020 and governs when a business can treat a worker as an employee as opposed to an independent contractor. Under AB5 and its “ABC” test,
New Franchise Regulations on the Horizon?
On September 16, 2020, Rohit Chopra, one of the five commissioners on the Federal Trade Commission (FTC), declared on Twitter that “[franchise] regulators must stop unfair, deceptive, and discriminatory practices that target franchisees and their
Franchise 101: New Joint Employer Rule Nixed for Now; and Trashing the Competition
Franchisor 101: New Joint Employer Rule Nixed In another twist to the joint employer saga, a United States District Court in New York voided the Department of Labor’s (“DOL”) new rule for joint employment. Eighteen
Franchise 101: COVID-19 vs. Item 19; and Recruitment Reprimand
FRANCHISOR 101: COVID-19 vs. Item 19 Item 19 of the Franchise Disclosure Document (FDD) can provide information on how a prospective franchisee may perform financially. Historical financial performance representations (FPRs) may be made if the
Los Angeles County and City Issue Dine-In Orders
As Los Angeles reopens in the midst of the COVID-19 pandemic, Los Angeles County and the City of Los Angeles have issued substantially similar Revised Orders that restaurants must comply with to provide dine-in service.
California Governor Issues Paid Sick Leave to Food Sector Workers
Updated April 24, 2020 On April 16, 2020, Governor Gavin Newsom signed an industry-specific Order (Executive Order N-51-20), directing food sector “hiring entities” to provide up to two weeks of supplemental paid sick leave related
COVID-19: State FDD Renewal Changes
In light of the COVID-19 pandemic, several states that require annual Franchise Disclosure Document (FDD) renewals made recent changes to their filing deadlines, fees and/or submission requirements, as set forth below. California On March 22,
Franchise & Distribution: COVID-19 Client Bulletin
by Lewitt Hackman’s Franchise & Distribution Practice Group COVID-19 has impacted the franchise industry heavily. Stores have been forced to close or open only for pickup or delivery. How to deal with bills, including rent
Franchisors are “Lovin’ It”
In a win for franchisors, the Ninth Circuit recently affirmed the district court’s summary judgment in favor of fast-food behemoth McDonald’s Corp., ruling that the franchisor is not a joint employer of its franchisees’ workers