RECENT POSTS
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
Changes: Cooperation Rather Than Conflict
The COVID-19 pandemic forced food service franchisors and franchisees to adapt their business models and operations procedures and work together to survive during these unprecedented times. People generally resist change because they fear they will
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
Competing Tests: Employee or Independent Contractor? Saving the Franchise Model
Assembly Bill 5 took effect in California on January 1, 2020 and governs when a business can treat a worker as an employee as opposed to an independent contractor. Under AB5 and its “ABC” test,