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|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.
|Looking Forward by Looking Back: China’s Franchise Regulations after Eight Years|
Tao Xu; DLA Piper (Canada) LLP;
September 11, 2015, previously published on July 17, 2015On July 1 and 2, we, representing the International Franchise Association, met with China’s franchise regulators in Beijing and Shanghai. The conversation would be familiar to anyone who has been closely following the development of the franchise regulatory regime in China in the last eight...
|Beyond the NLRB’s Browning-Ferris Joint Employer Decision: What Does It Mean for Franchising?|
Kevin Harlow, Harriet A. Lipkin, Erik B. Wulff; DLA Piper (Canada) LLP;
September 11, 2015, previously published on September 10, 2015The new, expanded concept of “joint employer” is inexorably taking hold. Proponents of this new outlook are striving to apply it to franchising - part of a broader initiative to overcome the so-called “fissured employment” landscape in the US.
|Is There a Lesson from Dunkin’ Donuts for Franchisors Outside Quebec?|
M. Sandra Appel; DLA Piper (Canada) LLP;
September 10, 2015, previously published on August 21, 2015The Quebec Court of Appeal has recently upheld the 2012 decision of the Superior Court awarding substantial damages - CA$10.9 million - to former franchisees of Dunkin’ Donuts.1 Application for leave to appeal was filed with the Supreme Court of Canada on June 15, 2015; a decision is expected...
|California: Franchise Tax Board Responds to Issues With Its Web Portal|
David H. Godenswager, David M. Kall, Susan Millradt McGlone; McDonald Hopkins LLC;
August 7, 2015, previously published on July 30, 2015On July 23, 2015, in response to ongoing security and privacy concerns, the California Franchise Tax Board (CFTB) announced that it was delaying the launch of its enhanced web portal, MyFTB, until January 2016, so it has more time to implement additional identity verification during the...
|Room for Sale: Rent-to-Own Is a Retail Trade Under the Texas Franchise Tax|
Madison J. Barnett, Olga Jane Goldberg; Sutherland Asbill & Brennan LLP;
August 3, 2015, previously published on July 31, 2015The Texas Court of Appeals ruled that Rent-A-Center is primarily engaged in retail trade and thus qualifies for the lower 0.5% franchise tax rate available to retailers and wholesalers. The Comptroller argued that the rent-to-own business is a rental service rather than the sale of merchandise in a...
|How Foreign Franchisors Can Expand into the United States Using Foreign Franchisees|
Henry J. Chang; Blaney McMurtry LLP;
July 15, 2015, previously published on July 14, 2015Foreign-based franchisors may wonder how difficult it would be to expand their businesses into the United States. Although ensuring compliance with local franchising laws is essential, it is not the only challenge that foreign-based franchisors will face when attempting to establish a presence in...