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HTMLFranchise Agreement Transfer Provisions
Samantha Ahuja, Nelson F. Migdal; Greenberg Traurig, LLP;
Legal Alert/Article
March 26, 2015, previously published on March 16, 2015
The number of hotels, particularly limited service hotels, operating under franchise agreements has exploded in recent years, and this trend is expected to continue in the near term. Franchise agreements, including those in the hospitality industry, are personal contracts for the benefit of the...


HTMLOntario Court of Appeal Again Narrowly Interprets the Resale Exemption in Ontario’s Franchise Legislation
Brooke MacKenzie, Adam Ship; McCarthy Tétrault LLP;
Legal Alert/Article
March 25, 2015, previously published on March 23, 2015
In its recent decision in 2147191 Ontario Inc. v. Springdale Pizza Depot Ltd., 2015 ONCA 116, the Ontario Court of Appeal upheld a finding on summary judgment that a franchisor could not rely on the “resale exemption” from the disclosure requirements found in Ontario’s franchise...


HTMLOntario Court Rejects Franchise Class Action Settlement Agreement for Overbroad Release
Adam Ship, Chantal C. Tremblay, Jill Yates; McCarthy Tétrault LLP;
Legal Alert/Article
January 8, 2015, previously published on November 25, 2014
In 2038724 Ontario Ltd. v. Quizno’s Canada Restaurant Corporation, the Ontario Superior Court of Justice recently dismissed a motion to approve a Settlement Agreement between the Franchisor and the Representative Franchisees on the basis of an overbroad unfair release.


HTMLOntario Superior Court Refunds Franchise Fee on the Basis of Frustration of Contract
Brooke MacKenzie, Adam Ship, Thomas N.T. Sutton; McCarthy Tétrault LLP;
Legal Alert/Article
January 8, 2015, previously published on October 15, 2014
The Ontario Superior Court recently affirmed a Small Claims Court decision returning a franchise fee to a franchisee where the franchise location contemplated was no longer available - in spite of a clause in the franchise agreement stating that the franchise fee “is under no circumstances...


HTMLYou're Gonna Have to Do More Than That: Passive Investment in California Limited Liability Company Insufficient to Meet Statutory Nexus Threshold
Timothy A. Gustafson, Evan Hamme; Sutherland Asbill & Brennan LLP;
Legal Alert/Article
December 12, 2014, previously published on November 26, 2014
A California Superior Court held that passive membership in a limited liability company (LLC) is insufficient to meet California’s statutory “doing business” standard. In Swart Enterprises, Inc. v. California Franchise Tax Board, an Iowa corporation with no business activities or...


HTMLGet ready, Vietnam’s Restaurants Open To 100% Foreign Ownership!
Manfred Otto; Duane Morris Vietnam LLC;
Legal Alert/Article
November 17, 2014, previously published on October 24, 2014
Now is the time for international chains to position themselves. Beginning in January 2015, Vietnam’s restaurant business is open to 100 percent foreign ownership. Foreign-invested enterprises (“FIE”) may run their own production and internal logistics network free from...


HTMLHidden Trap in Confidentiality Provisions in Settlement Agreements Entered into by Franchisors
Nicole J. Harrell, Stephen E. Story; Kaufman & Canoles A Professional Corporation;
Legal Alert/Article
November 13, 2014, previously published on January 2, 2014
Franchisors entering into settlement agreements must be certain that the settlement agreements give the franchisor the right to make any disclosures required by the Franchise Disclosure Document (“FDD”), without breaching any confidentiality provisions in the settlement agreement.


HTMLGovernor Vetoes Proposed Changes to California Franchise Law
Michael A. Bowen, Roberta F. Howell; Foley & Lardner LLP;
Legal Alert/Article
October 28, 2014, previously published on October 3, 2014
To the surprise of many, California Governor Jerry Brown has vetoed the proposed changes to California’s franchise laws that were discussed in our Client Alert on August 28, 2014. In his veto message, Governor Brown criticized the bill’s substitution of “substantial and material...


HTMLSurprise! You Might be an Employer of Your Franchisee’s Employees
Anne-Marie Naccarato; Cassels Brock & Blackwell LLP;
Legal Alert/Article
October 14, 2014, previously published on October 8, 2014
On July 29, 2014, the National Labor Relations Board in the United States authorized 43 complaints of alleged violations of the National Labor Relations Act to proceed against McDonalds, USA, LLC (“McDonald’s”). The alleged violations occurred at McDonald’s franchised...


HTMLDeli Franchisor’s Disclosure Misses the Mark: Lessons From DeliMark Café
Christopher Horkins; Cassels Brock & Blackwell LLP;
Legal Alert/Article
October 14, 2014, previously published on October 8, 2014
In the recent case of 2237310 Ontario Inc. v. 2264145 Ontario Inc. the Ontario Superior Court of Justice granted a declaration of rescission on summary judgment to a franchisee as a result of numerous disclosure failures. The case provides a helpful reminder of the need to ensure compliance with...


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