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HTMLCalifornia's "Doing Business" Standard Requires Neither Any "Doing" Nor Any "Business" in California
Stephen A. Burroughs, Pilar Mata; Sutherland Asbill & Brennan LLP;
Legal Alert/Article
August 19, 2014, previously published on August 13, 2014
The California Franchise Tax Board (FTB) issued a legal ruling determining that it will attribute the business activities of a multiple-member limited liability company classified as a partnership for tax purposes (LLC) to its members when determining whether such members are “doing...

 

HTMLActions May Speak Louder than Words: Can Franchise Agreements Protect Franchisors from Liability as Joint Employers?
David Dubberly, Ted P. Pearce; Nexsen Pruet, LLC;
Legal Alert/Article
August 14, 2014, previously published on August 5, 2014
The National Labor Relations Board (NLRB) has created a buzz within the franchise community by announcing that McDonald's may be responsible as a "joint employer" for alleged unfair labor practices of some of its franchisees. Employees of franchisees have filed more than 180 unfair labor...

 

HTMLAppeals Court Upholds "Silent Fraud" Jury Verdict under Franchise Investment Law
David L. Cahn; Whiteford, Taylor & Preston L.L.P.;
Legal Alert/Article
August 12, 2014, previously published on August 6, 2014
Take-away: If your franchise offering document is silent on key issues, you can be liable if your people “oversell” to a potential franchisee. Better to deal with the issue in carefully vetted writing than to be surprised by something your people say off the cuff.

 

HTMLFood, Folks, and Franchise-Wide Liability: NLRB Signals Intent to Pound Square Joint Employer Peg Into Round Franchise Hole
Christopher G. Ward; Foley & Lardner LLP;
Legal Alert/Article
August 12, 2014, previously published on August 11, 2014
A big part of what makes the franchise model of business attractive to small business owners is the opportunity to own and operate their own business, but with their entrepreneurial risk backstopped by a known regional or national brand. In turn, the franchisor facilitates the success of its...

 

HTMLEnforcing Quality Standards in Hotel Franchise Agreements
David L. Cahn; Whiteford, Taylor & Preston L.L.P.;
Legal Alert/Article
August 12, 2014, previously published on August 6, 2014
Take-away. A franchisor’s diligence in conducting and documenting quality assurance inspections is as important as ever, particularly if the franchisor seeks to exercise its ultimate weapon - termination of the franchise agreement. Prudent inspection and documentation practices are...

 

HTMLNLRB Franchisor-Liability Decision Could Reach Professional Services Firms
Dana S. Douglas, Stanley J. Parzen; Mayer Brown LLP;
Legal Alert/Article
August 7, 2014, previously published on August 5, 2014
A recent decision from the US National Labor Relations Board (NLRB) could open the door to new sources of liability for some professional services firms. The decision allows franchisors to be treated as “joint employers” along with their franchisees in labor complaints. In considering...

 

HTMLNLRB Moves Toward New Standard to Hold Franchisors Are Joint Employers of Their Franchisees' Employees
Frederick L. Warren; Ford & Harrison LLP;
Legal Alert/Article
August 4, 2014, previously published on August 1, 2014
Executive Summary: Over the last two years fast-food workers have engaged in walkouts and other activities protesting their wages and seeking an increase to $15/hr. Numerous unfair labor practice charges have been filed with the National Labor Relations Board (NLRB) against restaurant franchisors...

 

HTMLCalifornia: Franchise Tax Board Provides Guidance on Tax Liability of Corporate Members of Multi-Member LLCs
McDonald Hopkins LLC;
Legal Alert/Article
August 4, 2014, previously published on July 31, 2014
On July 22, 2014, the California Franchise Tax Board (FTB) provided guidance in Legal Ruling 2014-01 (Ruling) regarding when a corporation - including a limited liability company taxed as a corporation - is required to file a California return and pay any applicable taxes and fees because of its...

 

HTMLEurope: New Laws to Increase Protection of Trade Secrets and Confidential Information
Dentons Canada LLP;
Legal Alert/Article
July 30, 2014, previously published on July 23, 2014
A new Directive in the European Union is set to assist franchisors and franchisees who own confidential business information (such as trade secrets and know-how). The proposal will be welcomed by business, given the laws to protect and enforce trade secrets across the EU are at present fragmented...

 

HTMLAustralia Introduces New Duty of Good Faith
Robyn Chatwood, Babette Marzheuser-Wood; Dentons Canada LLP;
Legal Alert/Article
July 29, 2014, previously published on July 1, 2014
Australia is set to amend the mandatory Franchising Code of Conduct (the Code) and the Competition and Consumer Act (the CCA). The changes are likely to take effect on 1 January 2015.

 


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