So, your franchise agreement has an airtight arbitration provision…right? It probably says that if any disputes arise out of your franchise agreement, then they must be arbitrated (rather than litigated).
Continue Reading Want to enforce your arbitration provision? Then say it loud and clear (and unmistakably)!
A Tale of Two Non-Competes: Why Drafting Matters
In a recent blog, we cautioned readers that an overprotective non-compete can result in no protection at all. In that case, Unlimited Opportunity, Inc. v. Waadah, a franchisor
Continue Reading A Tale of Two Non-Competes: Why Drafting Matters
Adding a dash of clarity: Ontario releases menu labeling law regulations
The Ontario government has released highly anticipated draft regulations under the recently enacted Healthy Menu Choices Act (the “Act”) that clarify the Act’s menu labeling requirements. Still, uncertainties remain –
Continue Reading Adding a dash of clarity: Ontario releases menu labeling law regulations
Long Arm of Browning-Ferris? Hotel franchisor named as “joint employer” in alleged sexual servitude suit
A hotel assistant manager who allegedly coerced housekeepers into sexual “servitude” is now defending himself in federal court, along with his employer TMI Hospitality Incorporated (“TMI”). But they’re not alone:
Continue Reading Long Arm of Browning-Ferris? Hotel franchisor named as “joint employer” in alleged sexual servitude suit
Rhode Island: Long arm of state courts may reach many out-of-state franchisors
Franchisors can be made to litigate in their franchisee’s state courts due to commonplace features of the franchisor/franchisee relationship, according to a recent Rhode Island court decision.
In Korsak v.
Continue Reading Rhode Island: Long arm of state courts may reach many out-of-state franchisors
Making SBA loans safer for franchisees…by mandating FPR’s?
Each time franchisors update their franchise disclosure documents (“FDD”), they have a choice: whether or not to include financial performance representations (“FPR”). A new bill introduced by Representative Keith Ellison
Continue Reading Making SBA loans safer for franchisees…by mandating FPR’s?
The third party to your franchise agreement: Congress?
“It is the purpose of this Act to . . . govern franchise agreements . . . to the full extent consistent with the Constitution of the United States .
Continue Reading The third party to your franchise agreement: Congress?
Count your calories and add 1 year: Final Menu Labeling Rule postponed until Dec. 2016
Under pressure from large retailers, trade associations and lawmakers, the Food and Drug Administration (“FDA”) will delay rules requiring certain food establishments to list calories on their menus. The original
Continue Reading Count your calories and add 1 year: Final Menu Labeling Rule postponed until Dec. 2016
Exception proves the disclosure rule: Disclose or Risk Rescission
Despite a favorable outcome for a franchisor, Braatz, LLC v. Red Mango FC, LLC is a cautionary tale of how franchise sales can go sour. 3:14-CV-4516-G (N.D. Tex. Apr. 27,
Continue Reading Exception proves the disclosure rule: Disclose or Risk Rescission
Non-competition provisions: too much protection can be no protection at all.
Beware the overbroad non-competition provision. The Nebraska Supreme Court recently sent this message loud and clear in Unlimited Opportunity, Inc. v. Waadah, 861 N.W.2d 437 (Neb. 2015). There, a
Continue Reading Non-competition provisions: too much protection can be no protection at all.