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|Are You An Accidental Franchisee?|
Houser Henry Syron LLP;
March 10, 2014Think “Franchise”, and some of the major restaurant and retail chain logos likely spring to mind. While
this is correct, the types of businesses that qualify as a franchise extend far beyond what you might imagine. In reality, many different types of business relationships can result...
|Lease Considerations for Franchised Businesses|
Renee Gerstman, Susan E. Wells; Jaburg Wilk;
March 6, 2014Franchised 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...
|Save The Date: Delaware Wants Your Franchise Taxes|
Foley Lardner LLP;
March 6, 2014, previously published on February 27, 2014If 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...
|Iowa Companies Sue City Over Franchise Fees|
Sutherland Asbill Brennan LLP;
March 4, 2014, previously published on February 4, 2014Eighteen 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.
|Sioux City Looks to Settle Excessive Fee Claims|
Sutherland Asbill Brennan LLP;
March 4, 2014, previously published on February 3, 2014Residents 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,...
|Commercial Cleaning Franchisor Sweeps Up RICO Claims — Arbitration Provision and Class-Action Waiver Clause Valid and Enforceable By Nonsignatories|
February 19, 2014, previously published on February 4, 2014Stratus 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)...
|Thanks for Being a Delaware Corporation: Here Is Your $180,000 Franchise Tax Bill|
Richard C. Segal; Foley & Lardner LLP;
February 19, 2014, previously published on February 18, 2014Delaware 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...
|Ten Contract Provisions That a Prospective Franchisee Should Consider Before Signing a Franchise Agreement|
Ted P. Pearce; Nexsen Pruet, LLC;
February 18, 2014, previously published on February 10, 2014The 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...
|Financial Performance Representations|
Nexsen Pruet LLC;
February 18, 2014, previously published on February 11, 2014On 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...
|Franchisors Must Repurchase Damaged Equipment From Franchisees Upon Rescission|
Brooke MacKenzie, Adam Ship; McCarthy Tétrault LLP;
February 17, 2014, previously published on February 4, 2014In 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...