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|California: Franchise Tax Board Responds to Issues With Its Web Portal|
David H. Godenswager, David M. Kall, Susan Millradt McGlone; McDonald Hopkins LLC;
August 7, 2015, previously published on July 30, 2015On July 23, 2015, in response to ongoing security and privacy concerns, the California Franchise Tax Board (CFTB) announced that it was delaying the launch of its enhanced web portal, MyFTB, until January 2016, so it has more time to implement additional identity verification during the...
|Room for Sale: Rent-to-Own Is a Retail Trade Under the Texas Franchise Tax|
Madison J. Barnett, Olga Jane Goldberg; Sutherland Asbill & Brennan LLP;
August 3, 2015, previously published on July 31, 2015The Texas Court of Appeals ruled that Rent-A-Center is primarily engaged in retail trade and thus qualifies for the lower 0.5% franchise tax rate available to retailers and wholesalers. The Comptroller argued that the rent-to-own business is a rental service rather than the sale of merchandise in a...
|How Foreign Franchisors Can Expand into the United States Using Foreign Franchisees|
Henry J. Chang; Blaney McMurtry LLP;
July 15, 2015, previously published on July 14, 2015Foreign-based franchisors may wonder how difficult it would be to expand their businesses into the United States. Although ensuring compliance with local franchising laws is essential, it is not the only challenge that foreign-based franchisors will face when attempting to establish a presence in...
|Fast food and franchise|
Michael Rainer, Michael Rainer; GRP Rainer LLP;
May 7, 2015, previously published on May,06,2015A well-known fast food chain has terminated the contract with one of its franchisees in Germany, but the latter is fighting back. There are several pitfalls that one needs to be mindful of regarding franchise agreements.
|What Happens When a Franchise Agreement Ends, Part Two: Cancellation|
Richard Stobbe; Field Law;
April 27, 2015, previously published on March 12, 2015In some cases, a franchise relationship ends after many years of business. At the point of termination, the parties must wrestle with a number of issues, including customers, inventory, and (as we reviewed in Part 1) the impact of any post-termination restrictive covenants.
|Québec Court of Appeal Recognizes Implied Obligations in Franchise Agreement: What Does This Really Mean?|
Helen Fotinos, Sam Khajeei, Anne-Marie Naud, Adam Ship, Chantal C. Tremblay; McCarthy Tétrault LLP;
April 22, 2015, previously published on April 17, 2015On April 15, 2015, the Québec Court of Appeal released its long-awaited decision in Dunkin' Brands Canada Ltd. c. Bertico inc., 2015 QCCA 624. The Court applied its earlier decision in Provigo in conjunction with the “theory of implied obligations” and the “duty of good...
|New Ukrainian Franchise Regulations Adopted|
Babette Märzheuser-Wood; Dentons Canada LLP;
April 22, 2015, previously published on February 4, 2015The Ministry of Justice of Ukraine, through its Order No. 1601/5 recently adopted a new “Procedure for the State Registration of Commercial Concession (and Sub-Concession) Agreements” (the “Franchise Registration Procedure”). Commercial Concession is the Ukrainian legaleze...
|International Franchising in the Fashion Industry - Top Five Tips for Growing Overseas|
Robyn Chatwood, Babette Märzheuser-Wood; Dentons Canada LLP;
April 22, 2015, previously published on January 13, 2015In the evolution of any fashion brand, growing the business through online and retail stores is a key strategic issue. Following initial launch and consolidation, it is inevitable that, in each fashion brand's life cycle, it will consider international expansion. Then, how to grow will be as...
|Franchise POST: A Franchise Chain's Non-compete Agreement Comes Under Congressional Scrutiny|
Matthew S. DeAntonio; Nexsen Pruet, LLC;
April 14, 2015, previously published on January 6, 2015Tremors were felt throughout the franchise community when a recent article in The Huffington Post reported that the Jimmy Johns sandwich franchise is under Congressional scrutiny for its franchisees’ practice of requiring lower level employees to sign non-competition agreements. The...
|Ontario Court Stays Franchisees’ Class Action in Favour of Arbitration Clause in Franchise Agreement|
Meghan S. Bridges, Adam Ship; McCarthy Tétrault LLP;
April 7, 2015, previously published on January 30, 2015In 1146845 Ontario Ltd. v. Pillar to Post Inc., 2014 ONSC 7400, the Ontario Superior Court of Justice stayed a class action brought by plaintiff franchisees against the franchisor in favour of an arbitration clause in the franchise licensing agreement.