RECENT POSTS
Impending Doom for Franchise Business Model in California?
California Assembly Bill 257, the Fast Food Accountability and Standards Recovery Act is currently pending in the California Legislature, introduced by Assembly Member Lorena Gonzalez. Also known as the FAST Recovery Act, Gonzalez introduced AB 257
Franchising Attacked Again
Earlier this year, we questioned whether franchising was in the crosshairs of federal regulators and legislators. It appears that the answer may be a resounding yes. Hit #1 appeared in September 2020, when Rohit Chopra,
Register and Apply ASAP for Restaurant Revitalization Fund Grants
The Restaurant Revitalization Fund (RRF) will provide financial relief for eligible restaurants and related food and beverage service businesses with $28.6 billion of tax-free federal grants if their revenue in 2020 was less than their
Restaurant Revitalization Fund Application Process and Guidelines Update
The Small Business Administration (SBA) released key details on application requirements (RRF Application), eligibility and a program guide (RRF Program Guide) for the Restaurant Revitalization Fund (RRF) on April 19, 2021. The RRF provides financial relief for eligible
Help for Food Service: Restaurant Revitalization Fund Grant Program
Restaurants have been severely impacted by COVID-19 because of permanent and temporary shutdowns that eliminated or reduced revenue, and the increased costs that many operators incurred to bolster take-out and delivery sales and accommodate a
New Revenue Rule Affects Franchisors
An updated rule issued by the Financial Accounting Standards Board (“FASB”) will again change when most franchisors can recognize revenue in their financial statements from the sale of their franchises and their collection of initial franchise fees.
Is Franchising In the Crosshairs of Federal Regulators and Legislators?
The Feds may be targeting franchising. In September 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
How Did I Not See This Coming? Retroactive Application of Dynamex
Today, the California Supreme Court held that the ABC Test, as articulated in Dynamex, applies retroactively to claims under California’s Industrial Welfare Commission Wage Orders. ABC Test Background In 2018, in notable Dynamex Operations West,
Franchise 101: AB 5’s Preemptive Strike; and Shelf the Self-Help
December 22, 2020 Franchisor 101: AB 5’s Preemptive Strike Franchisors faced unprecedented challenges in 2020. Enactment of California’s Assembly Bill 5 on January 1, 2020 was just the tip of an iceberg. As the COVID-19
Franchise 101: Court Remediates Damage to Restoration Franchisor; and Fitness Franchisee Exercises Poor Judgment
Franchisor 101: Court Remediates Damage to Restoration Franchisor A federal court in Nashville granted summary judgment on breach of contract claims in favor of a damage restoration franchisor’s lawsuit with a former California franchisee. A