RECENT POSTS
Franchise 101: Your Neighborhood Debtor; and Rules of the Road
December 2018 Franchisor 101: Your Neighborhood Debtor A bankruptcy court has found that Applebee’s failed to properly terminate its franchise agreements prior to the franchisee petitioning for bankruptcy. Therefore, the franchise agreements remained in effect and were
Franchise 101: New Revenue Recognition Rule; and Lifeline Franchise?
November 2018 Franchisor 101: New Revenue Recognition Rule for Initial Franchise Fees Most franchisors’ annual franchise registration renewal deadlines are a few months away. Nevertheless, franchisors should contact their accountants now regarding a new revenue
NLRB Proposes Tougher Standards for Plaintiffs Claiming Joint Employer Liability
The joint employer question has been a hot topic in franchise and employment litigation for the last few years. You may remember the Browning-Ferris decision of 2015, in which the National Labor Relations Board (NLRB,
When Managers Go “Rogue”: Franchise & Employment Law Implications
by Matthew J. Soroky & Tal Burnovski Yeyni What should an employer do when an employee violates Company policies or when the employee’s actions reflect poorly on the Company? Most employers use disciplinary actions – anything
Tax Franchisee Terminated for Sharing Space With CannaBiz
by Matthew J. Soroky 818-907-3022 In Devore v. H&R Block, the franchisor H&R Block was found to have lawfully terminated a franchisee for violating an in-term non-compete covenant, because the franchisee permitted its office manager
Why Today’s SCOTUS Decision May Impact Franchisor Royalties
by Taylor M. Vernon 818-907-3027 Today, in South Dakota vs. WayFair, Inc., et al., the United States Supreme Court (“Court”) overturned long-standing precedents that required an out-of-state Seller to have a physical presence in a
Killer Coffee? California May Exempt Coffee Industry from Prop 65 Warning Requirements
We told you about the lawsuit brought against nearly 100 food industry companies regarding the lack of Prop 65 warnings in restaurants and stores selling coffee. The problem is the potential presence of acrylamide when
Court of Appeal Limits Applicability of the ABC Test
by Sue M. Bendavid & Nicholas Kanter In Dynamex, the California Supreme Court decided to adopt an “ABC” test to determine whether workers are properly classified as independent contractors. This raised a number of questions
Court’s Prop 65 Ruling a Great “Brewhaha” for Coffee Retailers
In 2010, a nonprofit group called The Council for Education and Research on Toxics (CERT) brought a lawsuit against 91 commercial coffee roasters, retailers and distributors. CERT claimed the defendants failed to provide warnings regarding
Full Speed Ahead: SBA Directory May Hasten Franchisee Lending Process
Franchise & Distribution Practice Group Chair by Barry Kurtz 818-907-3006 As of January 1, 2018, the U.S. Small Business Administration (SBA) will begin implementing new rules that will affect franchisors, entrepreneurs wishing to join a