The U.S. Federal Trade Commission's (FTC) latest policy statement aims to dictate the outcome of contract negotiations between franchisors and their franchisees and to limit the potential negative impact on franchisees of...more
The Federal Trade Commission (FTC) made another move to protect two of the Biden administration’s priority constituencies: small business and workers. This time, it targeted perceived unreasonable restraints in the franchise...more
The Biden administration's Department of Justice, Antitrust Division (DOJ) continues a practice largely begun under the Trump administration of intervening in private litigation and requesting permission to file statements of...more
Are franchisees dependent offshoots of their franchisors, or are they standalone businesses capable of independent decision-making?...more
Over the last 18 months, no-poach provisions in franchise agreements have drawn considerable attention from academics, state attorneys general, politicians, and the class action plaintiffs’ bar.
Originally published in...more
1/8/2019
/ Class Action ,
Competition ,
Employee Solicitation ,
Fast-Food Industry ,
Food Service Workers ,
Franchise Agreements ,
Franchisee ,
Franchises ,
Franchisors ,
Hiring & Firing ,
Jimmy John's ,
McDonalds ,
No-Poaching
In order to avoid a lawsuit by the Washington State Attorney General, seven fast-food chains with store locations nationwide agreed to no longer enforce “no-poach/no-hire” provisions in their franchise agreements and to...more
In a recent decision, the United States Court of Appeals for the Third Circuit affirmed the dismissal of a franchisee’s claim that the franchisor’s termination decision violated the New Jersey Franchise Practices Act (NJFPA)...more
Agreements among companies to not hire each other’s workers are more risky than ever. The DOJ’s Assistant Attorney General for the Antitrust Division, Makan Delrahim, stated on January 19 that the division has criminal cases...more
4/5/2018
/ Antitrust Division ,
Antitrust Provisions ,
Antitrust Violations ,
Corporate Counsel ,
Employer Liability Issues ,
Enforcement Actions ,
Fast-Food Industry ,
Franchise Agreements ,
Franchises ,
Hiring & Firing ,
Joint Venture ,
Legislative Agendas ,
No-Poaching ,
Proposed Legislation
An Illinois federal judge recently found that a franchisor has the absolute right to control its franchisees’ advertising of the products and services offered under a franchise. Lokhandwala v. KFC Corp., No. 17-cv-6394 (N.D....more
2/1/2018
/ Advertising ,
Breach of Contract ,
Contract Interpretation ,
Corporate Counsel ,
Fast-Food Industry ,
Franchise Agreements ,
Franchises ,
Franchisors ,
Intellectual Property Protection ,
Islamic-Compliant ,
Promissory Estoppel ,
Trademarks
A recent federal court opinion overlooked a plain-language requirement of the “place of business” element of a claim under the New Jersey Franchise Practices Act (NJFPA), N.J.S.A. § 56:10-1 et seq., potentially expanding the...more
In a recent win for franchisor 7-Eleven, Inc., the U.S. Court of Appeals for the Third Circuit upheld a New Jersey district court’s ruling that 7-Eleven properly terminated its franchise agreements for cause based on the...more
The far-reaching implications of this decision could change the existing franchise business model.
Is a franchisor a statutory employer of its franchisee’s employees? The Workers’ Compensation Appeals Board thinks so,...more
7/28/2016
/ Appeals ,
At-Will Employment ,
Department of Labor (DOL) ,
Franchisee ,
Franchises ,
Franchisors ,
McDonalds ,
NLRB ,
PA Supreme Court ,
Statutory Interpretation ,
Workers Compensation Act ,
Workers Compensation Board ,
Workers' Compensation Claim ,
Workplace Injury