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|Rent-A-Member: Oregon Tax Court Rules Taxpayer Unitary with Its Captive Insurance Subsidiary but Not Its Franchising Subsidiary|
Pilar Mata, Derek Takehara; Sutherland Asbill & Brennan LLP;
May 26, 2014, previously published on May 21, 2014The Magistrate Division of the Oregon Tax Court held that for the tax year 2003, (1) Rent-A-Center, a rent-to-own operator, and its wholly-owned franchising subsidiary, ColorTyme, were not unitary; (2) ColorTyme did not have nexus with Oregon; and (3) Rent-A-Center and its captive insurance...
|New York: Governor Andrew Cuomo Signs Major NY Franchise Tax Overhaul Into Law|
McDonald Hopkins LLC;
May 21, 2014, previously published on May 8, 2014On March 31, 2014, New York Governor, Andrew Cuomo, signed the New York Budget Bill, 8559-D and S. 6359-D, into law. The budget included many major changes to New York franchise taxes, including a repeal of the Banking Franchise Tax, subjecting financial institutions to the Corporate Franchise Tax,...
|Are Franchise Agreements Negotiable?|
Susan E. Wells; Jaburg & Wilk, P.C.;
May 15, 2014Every franchisor has a form of franchise agreement that defines the rights and obligations of the franchisor and the franchisee. Or should I say, defines the rights of the franchisor and the obligations of the franchisee? The franchise agreement is an exhibit to the Franchise Disclosure Document...
|Issues to Consider for Prospective Franchise Owners|
Vincent T. Cieslik; Capehart & Scatchard, P.A.;
May 14, 2014, previously published on May 2, 2014Our firm and attorneys have represented franchisees in litigation with their franchisors for years. The franchise style of business, from the franchisor’s point of view, is all about standardization in contracts, services, and products. The franchisor wants and needs uniformity across the...
|Summary Judgment: The New Tool in Franchise Litigation?|
Carly Cohen, Geoffrey B. Shaw; Cassels Brock & Blackwell LLP;
May 12, 2014, previously published on May 2, 2014On the coattails of the recent Supreme Court of Canada decision in Hryniak permitting the broader use of summary judgment motions, the franchisor of Caffé Demetre restaurants has won its motion for summary judgment against a former franchisee.
|Not Loving It: Ontario Human Rights Tribunal Denies Attempt by Fast Food Franchisor to Extricate Itself from Complaint|
Carly Cohen; Cassels Brock & Blackwell LLP;
May 12, 2014, previously published on May 2, 2014In Lindsey v. McDonald’s Restaurants of Canada Ltd., the Human Rights Tribunal of Ontario denied McDonald’s preliminary request that it be removed as a respondent to an application alleging discrimination by a former employee.
|Ontario Court Overturns Wrongful Termination of Franchise Agreement by Franchisor|
Colin Pendrith; Cassels Brock & Blackwell LLP;
May 12, 2014, previously published on May 2, 2014In the recent case of ANC Business Solutions Inc. v. Virtualink Canada Ltd. in the Ontario Superior Court of Justice, Justice Perell considered whether Virtualink, the franchisor of a franchise system offering “executive office suites,” had unlawfully terminated ANC, one of its...
|Claim against Former Franchisee for Soliciting Customer Lists “Turfed” by BC Court|
Christopher Horkins; Cassels Brock & Blackwell LLP;
May 12, 2014, previously published on May 2, 2014In 0867007 BC Ltd v. Destinations International, the Provincial Court of British Columbia dismissed the claims of a franchised business purchaser seeking to rely on purported non-competition and non-solicitation provisions in its claim against the former franchisee that sold the business. Although...
|Global Franchise News: Preventing Competition by Former Franchisees|
Dentons Canada LLP;
May 8, 2014, previously published on April 30, 2014Most franchise agreements prevent the franchisee from competing with the franchisor for a certain period of time after termination. In Europe this is typically one year. In addition the franchisee can be prevented from using the trade mark of the franchisor for as long as the trade mark remains the...
|Failure Is Not An Option|
Tillman Y. Coffey; Fisher & Phillips LLP;
May 8, 2014, previously published on May 5, 2014When it comes to a dealership’s legal liability for employment-related problems, the basis of the liability generally falls into two categories - actions the dealership took and those it failed to take. When it comes to big dollar jury awards and settlements, a dealership’s failure to...