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|Enforcing Quality Standards in Hotel Franchise Agreements|
David L. Cahn; Whiteford, Taylor & Preston L.L.P.;
August 12, 2014, previously published on August 6, 2014Take-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...
|Food, Folks, and Franchise-Wide Liability: NLRB Signals Intent to Pound Square Joint Employer Peg Into Round Franchise Hole|
Christopher G. Ward; Foley & Lardner LLP;
August 12, 2014, previously published on August 11, 2014A 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...
|NLRB Franchisor-Liability Decision Could Reach Professional Services Firms|
Dana S. Douglas, Stanley J. Parzen; Mayer Brown LLP;
August 7, 2014, previously published on August 5, 2014A 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...
|NLRB Moves Toward New Standard to Hold Franchisors Are Joint Employers of Their Franchisees' Employees|
Frederick L. Warren; Ford & Harrison LLP;
August 4, 2014, previously published on August 1, 2014Executive 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...
|California: Franchise Tax Board Provides Guidance on Tax Liability of Corporate Members of Multi-Member LLCs|
McDonald Hopkins LLC;
August 4, 2014, previously published on July 31, 2014On 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...
|Europe: New Laws to Increase Protection of Trade Secrets and Confidential Information|
Dentons Canada LLP;
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...
|Australia Introduces New Duty of Good Faith|
Robyn Chatwood, Babette Marzheuser-Wood; Dentons Canada LLP;
July 29, 2014, previously published on July 1, 2014Australia 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.
|Canada's New Trademarks Act: What it Means for You|
Shane Hardy, Steven Kennedy, Stephen I. Selznick; Cassels Brock & Blackwell LLP;
July 3, 2014, previously published on June 27, 2014As reported in our previous e-lert, the Parliament of Canada passed Bill C-31, the Economic Action Plan 2014 Act, No. 1 on June 19, 2014. This has been a much anticipated omnibus bill, which introduces sweeping changes to Canadian trademark law.
|Turkey: A New Era on Pre-Contractual Disclosure Requirements of the Franchisor?|
Dentons Canada LLP;
July 2, 2014, previously published on June 12, 2014Turkey has long been a relatively franchisor-friendly jurisdiction given that franchise agreements are not governed by a special law and that there are no statutory requirements on registration or pre-contractual disclosure.
|New Jersey Franchisee Prevails on Summary Judgment|
Vincent T. Cieslik; Capehart & Scatchard, P.A.;
June 20, 2014, previously published on June 5, 2014One of the most potent weapons in the arsenal of a defendant, particularly one with the financial ability to litigate on a limitless budget, is the motion for summary judgment. A motion for summary judgment says to the Court that a party is clearly entitled to win the entire case, and that the case...