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HTMLSave The Date: Delaware Wants Your Franchise Taxes
Foley Lardner LLP;
Legal Alert/Article
March 6, 2014, previously published on February 27, 2014
If you’ve been keeping tabs on strategy for franchise tax payments in Delaware, you’re probably already aware that annual reports and franchise tax payments are due in the near future. For for-profit corporations filed with the Division of Corporations of the Secretary of State of...


HTMLLease Considerations for Franchised Businesses
Renee Gerstman, Susan E. Wells; Jaburg & Wilk, P.C.;
Legal Alert/Article
March 6, 2014
Franchised businesses pose unique leasing issues that the broker or agent should be aware of at the outset of the representation. The primary difference is that in the franchise context, you will need to satisfy your client, the franchisee, and the franchisor. Ask your franchisee client for any...


HTMLSioux City Looks to Settle Excessive Fee Claims
Sutherland Asbill Brennan LLP;
Legal Alert/Article
March 4, 2014, previously published on February 3, 2014
Residents in multiple Iowa cities have filed lawsuits claiming that franchise fees added to customers’ utility bills by those cities were excessive and amounted to an illegal tax. Despite the Iowa legislature’s subsequent passing of a law legalizing franchise taxes of up to 5 percent,...


HTMLIowa Companies Sue City Over Franchise Fees
Sutherland Asbill Brennan LLP;
Legal Alert/Article
March 4, 2014, previously published on February 4, 2014
Eighteen companies in Dubuque, Iowa, have filed suit against the city over its refusal to reimburse franchise fees. The plaintiffs claim that they have paid franchise fees on gas and electric utility bills imposed by utilities, including Maquoketa Valley Electric Cooperative.


HTMLThanks for Being a Delaware Corporation: Here Is Your $180,000 Franchise Tax Bill
Richard C. Segal; Foley & Lardner LLP;
Legal Alert/Article
February 19, 2014, previously published on February 18, 2014
Delaware is the state of incorporation for a majority of venture-backed and publicly-traded corporations. The Delaware courts have developed considerable expertise in dealing with corporate issues and there is a substantial body of case law construing Delaware law. As a result, investors are...


HTMLCommercial Cleaning Franchisor Sweeps Up RICO Claims — Arbitration Provision and Class-Action Waiver Clause Valid and Enforceable By Nonsignatories
HeplerBroom LLC;
Legal Alert/Article
February 19, 2014, previously published on February 4, 2014
Stratus Building Solutions faced a business challenge on a bet the company scale. Despite winning many franchise awards, five franchisees charged that its entire system imposed a fraud on franchisees. The plaintiffs sued 179 defendants, including the system franchisor, master (regional)...


HTMLFinancial Performance Representations
Nexsen Pruet LLC;
Legal Alert/Article
February 18, 2014, previously published on February 11, 2014
On Tuesday February 11th, the Charlotte Business Franchise Network met on the 15th floor conference room at Nexsen Pruet. The attendees, representing a broad cross section of franchisors, master franchisees, and franchise suppliers, were undaunted by the weather, and gathered to talk about...


HTMLTen Contract Provisions That a Prospective Franchisee Should Consider Before Signing a Franchise Agreement
Ted P. Pearce; Nexsen Pruet, LLC;
Legal Alert/Article
February 18, 2014, previously published on February 10, 2014
The saying that “love is blind” is as true in picking a franchise as in finding a soul-mate. Most prospective franchisees tend to shop franchise concepts instead of franchise agreements. They focus their search on hot concepts, franchise systems that have a good track record, and...


HTMLFranchisors Must Repurchase Damaged Equipment From Franchisees Upon Rescission
Brooke MacKenzie, Adam Ship; McCarthy Tétrault LLP;
Legal Alert/Article
February 17, 2014, previously published on February 4, 2014
In the latest installment of the Springdale Pizza Depot franchise dispute, the Ontario Superior Court of Justice clarified that, upon rescission, franchisors must buy back supplies and equipment purchased by the franchisee pursuant to the franchise agreement - even if the equipment is in very poor...


HTMLIndividual Guarantors in Alberta: Trap for the Unwary and Extra Cost
Jonathan Fleisher, Monique Sassi; Cassels Brock & Blackwell LLP;
Legal Alert/Article
February 14, 2014, previously published on February 12, 2014
On December 11, 2013, Alberta Bill 44: Notaries and Commissioners Act, received royal assent. The Bill which will come into force upon proclamation, amends the Alberta Guarantees Acknowledgment Act and in turn, changes Alberta law as it applies to any guarantee with an individual guarantor.


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