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|Five States Enact Laws: Franchisors Are Not "Joint Employers"|
Duane Morris LLP;
August 15, 2016, previously published on March 30, 2016On March 22, 2016, Michigan joined Wisconsin, Texas, Louisiana and Tennessee by amending its Franchise Investment Law to clarify that-unless the franchise agreement specifically states otherwise-a franchisee is considered the sole employer of workers to whom it pays wages or provides a benefit plan.
|British Columbia Becomes the Sixth Province in Canada to Introduce Franchise Legislation|
Eric C. Little, Blair Rebane, Matthew G. Swanson; Borden Ladner Gervais LLP;
August 11, 2016, previously published on August 3, 2016On October 5, 2015, the Government of British Columbia introduced Bill 38, the Franchises Act, for first reading in the legislature. The Bill followed an extensive investigation into the regulation of franchising by the British Columbia Law Institute ("BCLI") and months of consultation...
|Delaware Franchise Taxes - Two Methods of Calculation with Very Different Results|
William F. Miller; Pannone Lopes Devereaux & West LLC;
June 26, 2016, previously published on February 8, 2016Many corporations, limited liability companies and other business entities are organized under Delaware law, even though they do business elsewhere and have no other connections to the State of Delaware. There are three primary reasons why so many companies, both public and private, chose Delaware...
|What Happens When a Franchise Agreement Ends - Part Three: Rescission|
Richard Stobbe; Field Law;
March 23, 2016, previously published on February 17, 2016In our previous posts (See Part 1 and Part 2), we reviewed restrictive covenants and cancellation rights under franchise laws. In a recent decision of the Ontario Court of Appeal, the dispute focused on the right of rescission. As the court put it, the case of Caffé Demetre Franchising Corp....
|Congress Reacts to Obama Administration Moves on Joint Employer Liability|
Tressi L. Cordaro; Jackson Lewis P.C.;
February 17, 2016, previously published on February 9, 2016The Republican leadership of a congressional oversight committee has started investigating inter-agency communications in response to the Obama Administration’s attempts to hold business franchisors accountable for labor law violations of their franchisees.
|6 Hot Issues Facing the Franchise Industry in 2016|
Scott N. Opincar; McDonald Hopkins LLC;
February 12, 2016, previously published on February 8, 2016As we begin 2016, we look to identify the major hot issues facing franchise businesses in the upcoming year. Those in the franchise industry should consider each of these potential legal pitfalls and ensure they have plans in place to face any of these issues.
|Court of Appeal Provides Guidance on Common Issues and Franchisors' Duty of Good Faith|
Bevan Brooksbank, Graham Splawski; Borden Ladner Gervais LLP;
February 4, 2016, previously published on January 26, 2016 On January 14, 2016 the Ontario Court of Appeal released its unanimous decision in 1250264 Ontario Inc. v. Pet Valu Canada Inc.1 granting summary judgment dismissing a class action brought against Pet Valu by its former franchisee and bringing the claim to an end after over six years of litigation....
|Franchise POST: The Reformation of Financial Performance Representations; Has the Time Arrived?|
Theodore P. Pearce; Nexsen Pruet, LLC;
January 5, 2016, previously published on December 21, 2015Financial Performance Representations (“FPR’s), or earnings claims, have been an integral part of franchise sales process well before the Federal Trade Commission (“FTC”) began its supervision of the franchise model. The original Federal Trade Commission franchise rule,...
|The Franchise, the FTC, Deception, and Data Protection|
Alan M. Burger; McDonald Hopkins LLC;
November 2, 2015, previously published on August 26, 2015On Monday of this week the United States Court of Appeals for the Third Circuit issued a precedential opinion in a case brought by the Federal Trade Commission against the franchisor of Wyndham hotels. The Court ruled that, for now, the FTC has stated valid unfair and deceptive claims against...
|Franchise: Damages Claims by Franchisees|
Michael Rainer; GRP Rainer LLP;
September 24, 2015, previously published on September 22, 2015Franchisees can assert claims for damages if they were knowingly forecast unrealistic turnover figures when everything was being explained to them prior to the conclusion of the agreement.