RECENT POSTS
New Laws Could Curb SBA Guaranteed Lending to Franchisees
On March 16, 2022, the U.S. Senate Small Business Committee held a hearing on the Small Business Administration’s future on guaranteeing lenders’ loans to franchisees under S.1120, the Small Business Administration Franchise Loan Transparency Act, and S.2162,
Franchise 101: No Tax on Renewals; and Franchisor’s Tough TRO Mountain
Franchisor 101: No Tax on Renewals A federal court in Virginia denied tax franchisor, Liberty Tax’s, motion to dismiss complaints by two of its area developers (“ADs”). The ADs claimed Liberty Tax breached their contract
The Revival of the COVID-19 Supplemental Paid Sick Leave
On January 25, 2022 Governor Gavin Newsom announced that he reached a deal with legislative leaders to reinstate Supplemental Paid Sick Leave benefits for COVID-19 related absences (“SPSL”). A previous version of the law (Senate
It’s Baaack, Only One Year Later: AB 257 Attacks Franchise Restaurant Model
On January 31, 2022, the California State Assembly passed AB 257, the Fast Food Accountability and Standards Recovery Act (FAST Recovery Act, or the “Act”) by a vote of 41-19. The bill was originally introduced
New Los Angeles Minimum Wage
Starting July 1, 2022, all employees covered by the Los Angeles’ Minimum Wage Ordinance will get a raise, earning at least $16.04 per hour. (The current applicable minimum wage for all covered employees is $15.00/hour.) Employers
Franchise 101: Court Delivers for Pizza Franchisor; and Great Lakes Forum Selection Dispute
Franchisor 101: Court Delivers for Pizza Franchisor A Texas appeals court affirmed a lower court judgment in favor of Pizza Hut and its franchisee for claims of an alleged sexual assault by a delivery driver.
Supreme Court Blocks OSHA Vaccine/testing Requirement Rule for Large Employers
2022 started off with disappointing news for the Occupational Safety and Health Administration (OSHA). After various motions and two contradicting district court decisions, the Supreme Court decided with a 6-3 majority to stay OSHA’s Rule
Franchise 101: Waive Before Checkout; and No Shaking Franchisor’s TRO
FRANCHISOR 101: Waive Before Check Out A Georgia district court declined to dismiss a breach of contract case by a hotel franchisor against a franchisee. The court rejected the franchisee’s argument that the franchisor waived
Revised Cal/OSHA COVID-19 Regulations in Effect January 14, 2022
On December 16, 2021, California’s Division of Occupational Safety & Health (Cal/OSHA) approved revised and more restrictive COVID-19 Emergency Temporary Standards (ETS). The revised standards will go into effect January 14, 2022 and if not
Franchise 101: Inhospitable Forum Selection Clause; and Strong Releases Protect Fitness Franchisor
FRANCHISOR 101: Inhospitable Forum Selection Clause A hotel franchisee brought a class action lawsuit in Louisiana federal court on behalf of Louisiana franchisees. The franchisor moved to transfer the action to Georgia, based on the