RECENT POSTS
Forum Selection Clause Gone Wrong; and Indemnification Woes
Franchisor 101: Forum Selection Clause Gone Wrong A California Court of Appeal held that courts should not enforce forum selection clauses in contracts that also contain a jury waiver. For franchisors that have California franchisees,
California AB 5; and Differences Between Franchises and Other Business Arrangements
California Assembly Bill 5 (2019) California Governor Gavin Newsom signed into law Assembly Bill 5 (“AB-5”). AB-5 codifies into California’s Labor Code the “ABC test” for determining employee or independent contractor status, as adopted by
Franchise 101: Dickey’s Arbitration Pit; and If It Walks Like a Franchise…
Franchisor 101: Dickey’s Arbitration Pit A federal appeals court upheld a lower court’s refusal to order arbitration against a franchisee who bought an existing franchise. This was despite a provision in the franchise agreement to
Franchise 101: Don’t Interfere With Beer; and Over Supply of Gasoline Burns Potential Sale
Franchisor 101: Don’t Interfere With Beer The Mississippi Supreme Court ruled that a beer manufacturer’s “match and redirect” provision in an agreement with a wholesaler violated the state’s Beer Industry Fair Dealing Act (BIFDA). Anheuser-Busch’s
Franchise 101: The Proof Is in the Writing; and Party Pauper
Franchisor 101: The Proof Is in the Writing Ten years after the franchisor of the EXIT real estate system entered into a franchise agreement for a franchisee to operate an EXIT franchise in Maitland, Florida,
Franchise 101: Enjoined in Margaritaville; and Personal Jurisdiction over Non-Resident Principal in Massachusetts
June 2019 Franchisor 101: Enjoined in Margaritaville Eskimo Hut, a franchisor of convenience stores that sell frozen daiquiris-to-go, convinced a Texas appellate court that it would probably win on claims that South Plains, a franchisee
Franchise 101: Franchisor Can Be “Employer” and Surviving Rejection
May 2019 Franchisor 101: Franchisor Can Be “Employer” The Ninth Circuit sent shockwaves through the franchise industry in ruling that last year’s California Supreme Court decision broadening who may bring wage misclassification claims (Dynamex v.
Franchise 101: Lessons in License Agreements; and Operation Philadelphia
April 2019 Franchisor 101: Lesson in License Agreements The U.S. Sixth Circuit Court of Appeals upheld summary judgment for franchisor Buffalo Wild Wings (“BWW”) rejecting a restaurant operator’s counterclaims for wrongful termination, malicious prosecution, and
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
Full Disclosure: Periodic Review of FTC Franchise Rule
The Federal Trade Commission (FTC) seeks public comment regarding its Trade Regulation Rule entitled, “Disclosure Requirements and Prohibitions Concerning Franchising” (the “Rule”). The Rule has been in effect since 1979, and was last amended in