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Franchise 101: A Tinted FDD; and Tea Up Your Business Expansion
Franchisor 101: A Tinted FDD A Tennessee federal district court granted a franchisee’s request for a preliminary injunction to prevent the franchisor from enforcing noncompete restrictions under the franchise agreement while the franchisee litigated its
Franchise 101: Getting Away With Tax (Franchisor) Evasion; and Fraud Claim Muzzled by Contractual Limitations Period
Franchisor 101: Getting Away With Tax (Franchisor) Evasion A Pennsylvania federal court refused to enforce non-competition and non-solicitation covenants in a franchise agreement of a nationwide tax preparation service franchisor. The court dismissed the franchisor’s
Franchise 101: Hunka, Hunka Confusion; and Leaky Forum Selection for Roofing Franchisor
Franchisor 101: Hunka, Hunka Confusion A federal district court in Florida denied a former moving and junk hauling franchisee’s motion to dismiss claims of trademark infringement and unfair competition by franchisor College Hunks Hauling Junk
Employers: New Rule for Worker Classification Under FLSA
On January 9, 2024, the Wage and Hour Division of the United States Department of Labor announced a new rule pertaining to classifying a worker as either an employee or independent contractor under the Fair
CA Employers: Noncompetes Voided, Notify Employees
A new California law concerning employee noncompete agreements and clauses went into effect Jan. 1, 2024, and requires affected employers to take action by Feb. 14, 2024. The new law, codified at Business & Professions
Franchise 101: Court Holds Joint Liability is Fashionable; and Lack of Personal Training and Personal Jurisdiction
Franchisor 101: Court Holds Joint Liability is Fashionable A California federal district court held that judgment entered against individual owners of a franchisor entity, KEP Fortune, LLC, finding them jointly and severally liable with the
Franchise 101: Franchisor Cannot Massage its Way Out of Vicarious Liability; and Insurance Franchisor Cannot Mitigate Franchise Claims
Franchisor 101: Franchisor Cannot Massage its Way Out of Vicarious Liability A Texas court of appeals affirmed judgment in favor of a plaintiff who claimed a franchisor was vicariously liable for a franchisee’s employee’s wrongful
Franchise 101: Liquidated Damages in 30 Minutes or Less; and The Price is Right: What Payments Establish a Franchise Relationship?
Franchisor 101: Liquidated Damages in 30 Minutes or Less A Michigan district court held a franchisee breached its obligations under its franchise agreements and upheld the liquidated damages clause in the agreements. Little Caesar Enterprises,
Feds Mandate Legal Entity Reporting
As of Jan. 1, 2024, the Corporate Transparency Act goes live. The CTA creates a national database of information concerning individuals who, directly or indirectly, own a substantial interest in, or hold substantial control over,
Franchise 101: The Secret is Not in the Dough; and An UnBakeable Non-Compete
Franchisor 101: The Secret is Not in the Dough A Utah federal judge denied cookie franchisor Crumbl an injunction preventing its competitor, Dirty Dozen, from opening new locations while litigation between the two franchisors was