What is the most vexing legal issue today facing companies that rely on independent contractors to perform essential services? Treating the engaging firm as the “joint employer” of their contractors’ workers. Joint employment legal risks extend to all companies that license their brand to independent licensees, distributors, dealers, or franchisees… Continue Reading
CONGRATULATIONS! You’ve spent years building your business, developing a loyal following, and honing your operations into a replicable format. You own two, three or maybe ten different locations, all profitable, and understand your business inside and out. You know the right demographics and cost to jumpstart new locations. You’ve … Continue Reading
Franchise agreement recitals declaring your franchisee to be an independent contractor, not an employee, are not dispositive!
Until now, the spotlight has never shined so brightly on franchising and, specifically, on whether franchisors are responsible for their franchisees’ activities.
On July 29, 2014, the NLRB’s General Counsel announced its… Continue Reading
Join Shelley Spandorf in this Google Hangout for a frank discussion of the NLRB general counsel’s action and its implications, as well as best franchise practices that help avoid these legal pitfalls.… Continue Reading
In a move with far-reaching ramifications for all businesses that license their brands to independent contractors including franchisees, the National Labor Relations Board (“NLRB”) announced on July 29, 2014 that it has authorized the filing of administrative complaints against franchise giant, McDonald’s USA LLC, for unfair labor… Continue Reading
The good news for franchising is the economy is coming back. Hit hard by the 2008 economic recession, franchise indices show an uptick in new franchise concepts and pent up demand for franchises among buyers. FranData, an independent franchise industry research firm, estimates that in 2013, banks will loan $23.9 billion to franchise businesses, the highest… Continue Reading
The foodservice industry’s leading news source, Nation’s Restaurant News, is currently conducting a survey asking readers to choose among eight regulatory issues for the one they think will have the biggest impact on food service businesses in the next two years: menu labeling; soda/ingredient bands;… Continue Reading
AFC Enterprises has asked the court to confirm that it may continue to use the POPEYES name after its licensing agreement with Hearst Corp., which owns the rights to the Popeye the Sailor cartoon character, expires.
The complaint reads: “The Agreement was never intended to and never has restricted AFC’s ability to use the name POPEYES®… Continue Reading
The following article appeared in Franchise Update on May 17, 2010. Click here to view article.
The following article appeared in the March/April, 2010 issue of Business Law Today.
Federal law requires all franchisors to update their franchise disclosure document (FDD) within 120 days after their fiscal year end (FYE). Likewise, state registrations must be renewed annually. Since most franchisors have a December 31 FYE, this is “renewal season,” the annual rite of racing the clock to meet updating and filing… Continue Reading
In Gentis v. Safeguard Business Systems, the defendant retained commissioned sales agents to solicit orders, follow leads, and provide customer service. The agents did more than just take orders, but lacked authority to enter into binding sales contracts… Continue Reading