The Northern District of Texas’s nationwide ban on the Federal Trade Commission’s (FTC) noncompete rule, which aimed to curb unfair competition by voiding noncompete provisions, hasn’t put a complete halt to government enforcement efforts. Instead, state attorneys general are ramping up their own actions against noncompetes under their respective unfair and deceptive practices acts. Each…
The US Court of Appeals for the Fifth Circuit reaffirmed Thursday that a provision in the Mississippi Constitution that permanently bans certain felons from voting does not violate the Eighth or Fourteenth Amendments to the US Constitution. This legal challenge was initiated by Dennis Hopkins, a disenfranchised voter, who argued that the lifetime voting ban…
As discussions around the Federal Trade Commission’s approach to overseeing franchisors continue to evolve, legal professionals argue for a more nuanced, case-by-case method. Earsa Jackson, a member at Clark Hill, articulated concerns about the potential pitfalls of a broad-brush regulatory approach, emphasizing the need to avoid treating the entire franchising industry uniformly when only isolated…
Australian corporate law firm Gilbert + Tobin is advising Mexican food chain Guzman y Gomez (GYG) on its $1.5 billion initial public offering (IPO). The offering is expected to raise A$243 million (US $161 million), with GYG anticipated to have a market capitalization of A$2.2 billion post-listing. The funds will be used for further growth,…
Following nearly two decades of litigation, Jan-Pro Franchising International Inc. and the janitors, who claimed they were incorrectly classified as contractors rather than employees, secured final approval for a $30 million settlement last Thursday. This case centred around allegations that the international janitorial firm had avoided complying with various pay laws by wrongfully categorising their…
Navjeet Singh Banga, a former student of the now-defunct John F. Kennedy College of Law, has taken legal action against his alma mater after failing two classes — torts and contracts — due to alleged inadequate disability accommodations. Banga claims that the lack of specific accommodations he requested led to his failure in these courses,…
Quarles & Brady has announced the return of Tim Brinkley to their franchise, distribution and business law practice groups, based in their Chicago office. This news signifies a strategic growth within the practice group’s existing talent pool. With his return, Brinkley brings a wealth of experience in negotiating and preparing franchise transactional documents, and further…
In a recent legal development involving franchising agreements, a Wisconsin federal district court has allowed a field representative’s claims that his representation agreement was an unregistered franchise to proceed beyond the pleading stage. The field representative is in the employ of an insurance company and his allegations have sparked a discourse on the legal dynamics…
Entrepreneurship is an exhilarating journey defined by passion, vision, and a relentless pursuit of success. You’ve built a brand that’s thriving and vibrant, both in your local market and potentially beyond. With your popularity soaring, feedback from customers, family, friends, or even business advisors might be indicating a newfound interest in franchising your business concept….
If you are a business owner preparing to franchise your brand or concept, you might be unsure about the next steps to take or when the ideal time to start franchising is. While there is no universal answer to these questions, there are some key steps that can help guide you on this new chapter…
In a significant legal development, a Texas court of appeals has affirmed a judgment favoring a plaintiff alleging that a franchisor was vicariously liable for wrongful conduct by a franchisee’s employee. The court’s decision underscores the potential liability risks that franchisors may face in connection with their franchisees’ operations. This case manifests a growing trend…
The vast business world offers countless strategies for brand expansion, each carrying its own set of complications and legal requirements. Among these strategies, licensing emerges as a particularly appealing solution for business owners, especially fast-moving entrepreneurs who prefer uncomplicated agreements and cost-effectiveness. The question remains, however: “Did We Accidentally Create a Franchise?” This concern is…
The United States Chamber of Commerce (“Chamber”), along with a coalition of business groups, recently initiated a lawsuit against the National Labor Relations Board (“NLRB”). The lawsuit, filed on November 9, 2023, in the Eastern District Court of Texas, puts forth allegations that the NLRB’s latest joint-employer ruling is unlawful. The contention of the Chamber…
In a recent determination dated October 26, the National Labor Relations Board (NLRB), a branch of the U.S. government tasked with enforcing labor laws relating to collective bargaining and unfair labor practices, has once again reshaped the concept of joint employment (JD Supra). The NLRB, in its final regulation, has expanded the definition of joint…
The National Labor Relations Board (NLRB) has issued a final rule that provides a significant revision of the Standards for Determining Joint-Employer Status under the National Labor Relations Act (NLRA). (Full text) This important shift clarifies the circumstances in which two or more entities can be recognized as joint employers of a certain group of…
In a recent manner involving a franchisee’s motion, the federal court in Florida made a noteworthy decision. The franchisee’s motion to vacate an arbitration award was rejected, even though the franchisee argued they were not properly notified of the arbitration hearing. The inquiry, Your CBD Stores Franchising, LLC v. Buckwalter, made headlines and stirred discussions…
On October 26, 2023, the National Labor Relations Board (NLRB) eased the way for it to designate companies as “joint employers” of workers directly hired by their contractors, vendors, suppliers, and franchisees. This move, expected to have widespread ramifications in the labor market, reflects a significant shift in regulatory approach. The NLRB’s final rule, as…
Last week witnessed a significant evolution in California’s digital legislation. Governor Gavin Newsom successfully signed California’s “broadband” permit processing bill (AB 965) into law, warranting a strategic shift in the way broadband permit applications are processed by local agencies. However, in contradiction with his previous stance of technological progress, the Governor vetoed AB 41, an…
Haynes and Boone, a prominent law firm, recently announced a new addition to their team: litigation partner Elizabeth Weldon in their branch in Orange County, California. The statement was made earlier this week. Prior to joining Haynes and Boone, Weldon was part of the established team at Snell & Wilmer. Combining her extensive expertise in…
California franchise owners should take note of a new trend in state enforcement. A focus is emerging on business models that have previously bypassed higher minimum wage pay by operating separate legal entities under the umbrella of a franchise. This tactic, previously employed by various business models including fast-food businesses, is undergoing increased scrutiny, as…
The Petroleum Marketing Practices Act (PMPA) has a profound impact on the operations of branded retail motor fuel facilities, a sector that continues to play a significant role in the supply chain of products sold in Arkansas. A brief contemplation of this multifaceted interplay reveals the ongoing reliance of Arkansas motor fuel jobbers, marketers, and…
In a marked progress in the no-poach litigation landscape, the Seventh Circuit Court has now revived the lawsuit involving employees of renowned fast-food chain McDonald’s. In June 2022, McDonald’s had achieved a judgment based on the pleadings, effectively putting an end to an antitrust litigation that questioned the legality of a no-hire clause previously included…
The US Court of Appeals for the Fifth Circuit has consented to reconsider its prior ruling that a provision of the Mississippi Constitution — one that permanently disallows people with certain felony convictions from voting — is unconstitutional. This development came about last Thursday. The reconsideration of the case, which pertains to Section 241 of…
As the global market tightens and competition intensifies, many small business owners have found themselves contemplating franchising as a possible expansion plan. Franchising can enhance your company’s physical presence, escalate your revenue, and heighten your brand recognition. However, it is not a decision to be taken lightly, and the process often takes longer than most…
In a significant development in the realm of franchisee law, a Minnesota federal court recently denied cookie dough franchisor Cookie Dough Bliss Franchising’s bid for a temporary restraining order and preliminary injunction against a former Minnesota franchisee and its owners. This represents a noteworthy instance of a non-compete clause, often embedded in franchise agreements, encountering…