RECENT POSTS
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
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
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: Taking the Red Pill on Non-Compete Covenants; and They Were Just Kidding
Franchisor 101: Taking the Red Pill on Non-Compete Covenants Franchisors and Franchisees in California have long conducted themselves based on precedent that voids post-termination covenants against competition in a franchise agreement in California. Recently, a
Franchise 101: Nothing Personal in Claims Against Hotel Franchisor; and Successor Slips Out of Non-Compete
FRANCHISOR 101: Nothing Personal in Claims Against Hotel Franchisor A guest sued the Hampton Inn and Suites franchisee in Nashville, Tennessee and the franchisor’s parent company, Hilton Domestic Operating Co., Inc. (“Hilton”), claiming race discrimination
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
Franchise 101: A Sticky Situation; and Expo Is No Excuse
Franchisor 101: A Sticky Situation A federal court in Maryland entered default judgment and a permanent injunction in favor of an ice cream franchisor against a franchisee that continued operating its ice cream shop after
Franchise 101: Not at Liberty to Compete; and Bar-B-Q Blues — A Tale of Friendship, Partnership, and Deceit
FRANCHISOR 101: Not at Liberty to Compete A federal district court in Michigan granted a preliminary injunction in favor of tax preparation franchisor, Liberty Tax Service (JTH Tax, Inc. v. Magnotte, E.D. Mich., ¶16,575), finding
Franchise 101: Joint Employer Wars (The Final Episode?); and The (Ice Cream) Cart Before the Rescission
Franchisor 101: Joint Employer Wars (The Final Episode?) Last month, the National Labor Relations Board (NLRB) issued a final rule governing joint-employer status under the National Labor Relations Act (NLRA). The rule should resolve years