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Franchise Law Update

Commentary on Business and Legal Issues of Franchising

Natalma M. McKnew

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Franchising on the Precipice: Unknowns in Transition

By Natalma M. McKnew on December 8, 2020

Over the last 8 years or so, the ever-changing landscape of employment laws has arguably posed an existential threat to franchising. The franchise business model may not make sense if…
Continue Reading Franchising on the Precipice: Unknowns in Transition

Posted in Business Updates, Legislative Updates

Joint Employment in Chaos: DOL Joint Employment Rule Invalidated

By Natalma M. McKnew on October 5, 2020

Hot on the heels of disappointing AB-5 news from California, a federal district court in Manhattan delivered a stinging rebuke to the Department of Labor (“DOL”), invalidating the control-based joint…
Continue Reading Joint Employment in Chaos: DOL Joint Employment Rule Invalidated

Posted in Joint Employer, Legal Decisions

No Joy for Franchising in CA: AB-5 Exemption Rejected

By Natalma M. McKnew on September 15, 2020

As if COVID, wildfires, and heat weren’t enough, California franchisors and franchisees suffered another gut punch when the legislature rejected a proposed franchise exemption to AB-5.

When AB-5 was enacted…
Continue Reading No Joy for Franchising in CA: AB-5 Exemption Rejected

Posted in Legislative Updates

Are COVID Immunity Laws Good for Franchising? (Part 2: The Counterpoint)

By Natalma M. McKnew on August 9, 2020

My vote is YES! In fact, I think they are essential! I thus respectfully disagree with my partner and colleague John Gotaskie.

John appropriately focuses on three stakeholders in…
Continue Reading Are COVID Immunity Laws Good for Franchising? (Part 2: The Counterpoint)

Posted in Articles

HEROES + HEALS = ?????: COVID Relief 3.0 is a Mystery

By Natalma M. McKnew on July 30, 2020

This is like watching sausage being made – it isn’t pretty. The House passed its $3 Trillion COVID rescue package (the HEROES Act) about a month ago. But the…
Continue Reading HEROES + HEALS = ?????: COVID Relief 3.0 is a Mystery

Posted in Legislative Updates

A Summer Potpourri (Part 2): States Litigate Joint Employer Rule and NASAA speaks

By Natalma M. McKnew on June 29, 2020

In Part 1 of this series, we discussed the recent actions taken by Congress regarding the PPP program as well as the efforts by the Fed. In today’s post, we…
Continue Reading A Summer Potpourri (Part 2): States Litigate Joint Employer Rule and NASAA speaks

Posted in Industry Updates, Joint Employer, Legal Decisions

A Summer Potpourri (Part 1): Congress Legislates and the Fed Weighs In

By Natalma M. McKnew on June 28, 2020

Amidst the continuing pandemic, summer brings faint hope that someday things might return to business as usual. For the franchise industry, recent events offer a hint of normality. In Part…
Continue Reading A Summer Potpourri (Part 1): Congress Legislates and the Fed Weighs In

Posted in Legislative Updates, Uncategorized

Washington v. Washington: State of No-Poach

By Natalma M. McKnew on May 26, 2020

The Department of Justice backed off no-poach challenges in franchise agreements in 2019, but the state doubled down. The result? Washington state challenged a raft of no-poach/no-hire provisions in 225…

Continue Reading Washington v. Washington: State of No-Poach

Posted in Business Updates, Drafting Tips

THE BALLAD OF THE HARE AND THE TORTOISE: FASB delays ASC 606

By Natalma M. McKnew & John Gotaskie on April 28, 2020

Surprise! On April 8th, FASB delayed for one year the implementation of the new ASC 606 revenue recognition standards for private companies,[1] citing the coronavirus pandemic. In…
Continue Reading THE BALLAD OF THE HARE AND THE TORTOISE: FASB delays ASC 606

Posted in Industry Updates, Regulatory Compliance

ACT NOW!!! New PPP and EIDL funds will disappear FAST

By Natalma M. McKnew on April 22, 2020

Yesterday, legislation adding an additional $310 Billion to the Payroll Protection Program (PPP) and $50 Billion to the Economic Injury Disaster Loan (EIDL) funds  passed the Senate, and passage in…
Continue Reading ACT NOW!!! New PPP and EIDL funds will disappear FAST

Posted in Industry Updates, Legislative Updates

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