If you own or operate a franchised restaurant, or are a franchisor of franchised restaurants, simply keeping your business operating smoothly is a lot of work. Food ordering, managing schedules and greeting guests, just name a few daily tasks, take time and effort. It’s easy for recordkeeping and tax planning to get placed on the
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U.S. Supreme Court to Decide Disgorgement Damages Issue in Trademark Dispute
Dewberry Engineers Inc. (“Dewberry Engineers”), a prominent engineering firm, has been locked in an on-again, off-again trademark dispute with a real estate development firm called Dewberry Group, Inc. (“Dewberry Group”) for nearly two decades. Now the dispute is going to the United States Supreme Court, which has agreed to hear Dewberry Group’s challenge to a…
In Arbitration, Shall Means Shall
The Supreme Court issued a decision today in a case named Smith, et al. v. Spizzirri, et al., that has significant import for the franchise community. Many, if not the vast majority of, franchise agreements contain clauses requiring the arbitration of disputes. Franchise companies choose arbitration because they consider it to be more convenient,…
Franchising Is Safe from the National Ban on Non-Compete Agreements. Right?
By now you’ve probably heard that the Federal Trade Commission (“FTC”) adopted a new rule severely restricting the use of non-compete agreements in the United States. You also might have heard that a number of organizations, including the U.S. Chamber of Commerce have already challenged this rule in court. Below is a Client Alert written…
Senate Formally Objects to the New NLRB Joint Employer Standard
If you attended this year’s IFA Annual Convention in Phoenix, you heard Senator Joe Manchin strongly support and defend the franchise business model in a speech. Late on Wednesday, Senator Manchin used his vote to back up the talk.
Specifically, Senator Manchin was the sole Democrat to cross the aisle and vote for a Congressional…
Action by Indiana Securities Division Reminds Franchisors to Watch Those Item 7 Estimated Initial Investment Numbers
The Securities Division of the Indiana Secretary of State issued a press release this week announcing that it filed an administrative complaint against Florida based Mac and Cheese Franchise Operations LLC and its parent company and owners (“MACFO”), the franchisor of the I Heart Mac & Cheese franchise restaurant concept. According to the complaint, MACFO…
California Paves Way for Franchise Broker Registration and Disclosure Model
Back in December 2022, we published a blog informing readers that guidance on franchise sales brokers and agents may be on the horizon. The North American Securities Administrators Association’s (“NASAA”) Franchise and Business Opportunities Project Group told us at the 2022 ABA Forum on Franchising Annual Meeting that it was focused on evaluating a…
Georgia Court Finds Hooter’s Franchise Non-Compete Unreasonable in Geographic Scope
A district court in Georgia recently granted a Motion for Preliminary Injunction filed by HOA Franchising, LLC’s, the franchisor of the Hooters restaurant chain (“Hooters”), against one of its former restaurant franchisees, MS Foods, LLC (“Franchisee”), but in doing so “blue-penciled” the Hooter’s post-term restrictive covenant to narrow the geographic limitations on…
Court Grants nearly $49 Million Default Judgment Against Burger Franchisor in First FTC Franchise Lawsuit in over a Decade
A federal district court recently granted the United States’ Motion for Default Judgment against the quick-service burger restaurant franchise concept, Burgerim Group USA, Inc. and its owner (“Burgerim”). The Federal Trade Commission (“FTC”) filed a complaint against the defendants alleging they used misleading sales practices to sell more than 1,500 franchises in violation of the…
Federal Court Throws Out NLRB’s Controversial Joint Employer Rule
In a move welcomed by employers nationwide, a federal court judge in Texas has vacated the National Labor Relations Board’s proposed joint employer rule.
Copyright: mipan / 123RF Stock Photo
The decision, handed down late on March 8, 2024, by Judge J. Campbell Barker of the Eastern District of Texas, means that the more employer-friendly…