RECENT POSTS
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
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
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