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FAST Act Shrapnel: AB 1228 redefines the franchise relationship

The FAST Act is in limbo pending the outcome of a California ballot repeal initiative. Undaunted, the Legislature has excised key provisions of that Act and positioned them for separate enactment as AB 1228, introduced by...more

California’s Tectonic Plates Shift — Part III

And so we come to the ultimate affront to franchising. Responding to strong lobbying efforts by the Service Employees International Union (SIEU), the California legislature passed the Fast Food Accountability and Standards...more

California’s Tectonic Plates Shift — Part I

“California’s falling into the ocean!” Growing up in Southern California I heard that every time we had an earthquake. Usually, though, all I had to do was stand in a door jamb and wait until the shaking stopped (now not the...more

Want Some Antitrust with your Burger?

Eleventh Circuit’s Burger King opinion raises antitrust risks in franchising- Sherman Act challenges to “no-poach” clauses in franchise agreements have been languishing in federal courts for a few years now, but with...more

Franchisors: We Offer The Following Prescription for Your Consideration

Recently we discussed the headwinds that remain for the franchise community as a result of policy changes coming from Washington and the various state capitols. What should franchisors consider as they swim in this sea of...more

Franchise Industry Calamity Averted, For Now

In recent blogs, we identified serious threats to the franchise industry – the Protect the Right to Organize (“PRO”) Act, joint employer standards, state ABC laws, and the new Biden Administration guard at the Department of...more

Franchising Threat No. 1: The PRO Act

The PRO Act would do serious, and perhaps mortal, damage to the franchise industry. It would make sweeping changes to the National Labor Relations Act (NLRA), the Labor Management Relations Act (LMRA), and the Labor...more

Unintended Consequences? The Employment Battle Threatens Franchising

The one-two punch of state and federal employment standards activity poses an existential threat to franchising; many commentators, including this one, have acknowledged that fact. But why? Did the California legislature or...more

Franchising On The Precipice: Unknowns In Transition

Change is coming, but will it be a welcome change or a harbinger of woe? Over the last 8 years or so, the ever-changing landscape of employment laws has arguably posed an existential threat to franchising. The franchise...more

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

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 in 2019, to the...more

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

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 discussing immunity legislation: business...more

Washington v. Washington: State Of No-Poach

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 franchise systems,...more

Franchising: Batting A Thousand In Spring Training!

In my recent post commenting on the Department of Labor’s joint employer rule, I wondered whether the NLRB would follow suit. Now we know, and the answer’s positive. It’s very good news for franchising! As we noted in a...more

Positive News On The Joint Employer Front!

In 2014, David Weil assumed the reins at the Department of Labor’s Wage and Hour division. Dr. Weil, an economic scholar, set his sights on the concept of joint employment. In academia, his work focused on what he termed a...more

Happy Holidays? More Challenges In Franchising

It’s the holiday season, but franchise lawyers may find little in recent events to celebrate. The challenges just keep on coming! Most recently, we’ve been challenged by California’s AB5 legislation and Dynamex decision,...more

Time To Exhale . . . CAUTIOUSLY: Ninth Circuit Has Good News For Franchisors

I admit I was among the scores of franchise lawyers whose blood pressure skyrocketed with passage of California’s AB 5. If a Franchise Agreement establishes an independent contractor relationship between franchisor and...more

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