As you may be aware, Pennsylvania Governor Tom Wolf issued an order late on Thursday prohibiting the operation of a business that is not life-sustaining. The order went into effect at 8 p.m. on Thursday, March 19, 2020. Enforcement is scheduled to begin at 12:01 a.m. on Saturday, March 21, 2020. A comprehensive list of
Happy Holidays? More challenges in franchising
It’s the holiday season, but franchise lawyers may find little in recent events to celebrate. The challenges just keep on coming!
Most recently, we’ve been challenged by California’s AB5 legislation and Dynamex decision, the DOJ’s brief foray into challenging “no poach” provisions and the State of Washington’s energetic embrace of that campaign. Unfortunately, recent developments
Webinar: Preserving Your Franchise System in the Face of California AB-5
So we’ve talked a bit over the last couple of weeks about California’s AB-5 and the implications for franchising. But maybe you would like to learn more? Then you’re in luck! On Monday, October 28, 2019, at 9 am PT (12 noon ET), my colleagues Tami McKnew and Nancy Yaffe will be presenting a webinar
How Do You Determine Your Franchise System’s Technology Fee?
In my recent experience, most franchise start-ups and emerging systems typically charge a technology fee or, at a minimum, reserve the right to charge a technology fee in the future. These fees are easily justifiable. Franchisors are routinely creating, developing, managing, and upgrading software programs, websites, phone systems, online platforms and similar technology solutions used
Negotiating Supplier and Distributor Agreements (Reports from the IFA Legal)
The first step in creating or renegotiating a supply chain is understanding its component parts, and the roles each part plays: Producers, Manufacturers, Distributors, Retailers, and Consumers. These roles are not exclusive. For instance, the producer of a raw good, such as milk or software code, may also be the manufacturer of the finished good
No-Poach and Antitrust, Part Deux (Or, is the risk worth it?)
In a recent post, I expressed the view that no-poach clauses in franchise agreements are unlikely to violate the antitrust laws. Recent activity, however, has given me a “maybe yes, maybe no” on my prediction.
First, two recent rulings offer differing views on the issue of the appropriate standard to apply to the antitrust
No-Poach Provision: The Latest Cause of Worry to Franchise Systems
The recent antitrust attacks on no-poach clauses encourage insomnia among franchise lawyers. But is the attack serious or just a flash in the pan, soon to be extinguished?
The insomnia began in the tech industry, where front-line players with huge market shares agreed not to poach each other’s employees. No-poach agreements among dominant market players,
Apply Now: Tips for Franchise Applications
Before signing an agreement with a new franchisee, franchisors often want to make sure the franchisee has the knowledge, skill, and investment necessary to be successful. While many people are interested in buying franchises, not everyone qualifies for every type of franchise. A franchise application is one tool that can help franchisors weed out potential
Are You Doing the Right Due Diligence as You Grow Your System?
In our last post, we examined some of the types of risk that come with growth. In this post, we discuss some forms of diligence that may be used to better manage that risk.
Diligence on Legal Matters
Are there operating hour ordinances that might affect the business? How about limitations on operating hours or
Reducing Your Risk When Growing your System
Growth can be expensive, but it is always more expensive when the expansion is taken without risk assessment. Whether domestic or foreign, many risks can be reduced or avoided by proper consideration of differences between where you are now, and where you want to go.
For illustration, the examples here will be for foreign expansion,