3 Key Takeaways | Is Franchising Doomed? The 2024 Version
5 Key Takeaways | Franchising in the USA: Challenges for Latin American Brands
Class Action | Eleventh Circuit Reinstates No Hire Antitrust Claims Against Burger King
Is Franchising Doomed?
Strategies for Negotiating with a Franchisee and Franchisor
Before committing to a franchise business, consider...
As the deadline for the Minnesota Anti-Poaching Update draws near, franchisors are reminded to update existing franchise agreements pertaining to non-soliciting and no-poaching restrictions....more
As we previously wrote, the Department of Justice’s (DOJ) April 2023 loss in United States v. Patel, its fourth in a criminal no-poach case, cast a pall over the agency’s enforcement efforts. The following month, the DOJ...more
In June of 2022, McDonald’s obtained a judgment on the pleadings, ending antitrust litigation challenging the legality of the no-hire restraints it previously included in its franchise agreements. More than a year later, the...more
Introduction - No-poach agreements, wherein companies agree not to solicit or hire employees away from a competitor, have been targeted by the White House, the Federal Trade Commission (FTC) and the Antitrust Division....more
The Seventh Circuit recently revived an antitrust challenge to a clause in McDonald’s franchise agreements barring franchises from poaching other franchises’ employees. (See our previous coverage of antitrust challenges to...more
In an important case of first impression that drew amicus participation from the Department of Justice, the Federal Trade Commission, and the International Franchise Association, the Seventh Circuit reversed a judgment in...more
In Deslandes v. McDonald’s USA LLC, issued August 25, 2023, the U.S. Court of Appeals for the Seventh Circuit overturned the dismissal of antitrust claims that challenged no-poach clauses in franchise agreements....more
Amendments to the Canadian Competition Act (Act), taking effect on June 23, 2023, will make it a criminal offence for unaffiliated employers to agree, conspire or arrange to: •“fix, maintain, decrease or control salaries,...more
Reflecting a shifting national landscape on restrictive covenants, the Minnesota Legislature recently adopted legislation that prohibits franchisors from placing certain nonsolicitation and no-poach restrictions in franchise...more
Arrington v. Burger King Worldwide, Inc., No. 20-13561 (11th Cir. Aug. 31, 2022) – In October 2018, a former line cook of a Burger King franchise restaurant in Illinois, filed a class action complaint in the District Court...more
Partner Jay Bogan recently discussed the Eleventh Circuit Reinstating No Hire Antitrust Claims Against Burger King....more
A federal appellate court held that Burger King and its franchisees may violate Section 1 of the Sherman Act (antitrust) by engaging in concerted action when entering into “no-hire” agreements. The appellate court reversed...more
Over the last several years, business-to-business “no-hire” and “no-poach” agreements have come under legal attack, including through enforcement actions by the Federal Trade Commission and criminal prosecutions by the...more
In June 2021, the Supreme Court reaffirmed in NCAA v. Alston that antitrust claims under Section 1 of the Sherman Act “presumptively” call for rule-of-reason analysis and that only the rare case merits “quick look” or per se...more
A federal judge in the U.S. District Court for the Northern District of Illinois has held that an antitrust challenge to a “hiring restriction [that] prevented” plaintiff employees “from taking a better-paying position with a...more
New Standard Contract Language for Data Transfers Facilitates Lawful Personal Data Transfers to/from EU and U.S. - In response to the EU Court of Justice Schrems II opinion, which declared that the former EU-US Privacy...more
For the past few years, it seems franchisors have been riding a roller coaster when it comes to no-poach clauses in their franchise agreements. While for a time it seemed as though scrutiny for such clauses might be fading,...more
Two Illinois Federal Courts Deny Class Certification in Anti-Poaching Class Actions Against Franchisors - Two federal courts in Illinois have rejected motions to certify classes of employees who worked in franchised...more
So yesterday I discussed some background related to anti-poaching and non-compete law. Today, I explain why the decision in Pittsburgh Logistics Systems provides a helpful analogue to franchising...more
Last week, the New York State Senate advanced two bills seeking to ban both “no-poach” clauses in franchise agreements and “no-rehire” clauses, which are commonly used in settlement agreements....more
Illinois Federal Court Excludes Plaintiffs’ Expert Testimony on Certification Motion in Anti-Poaching Class Action - A federal court in Illinois granted Jimmy John’s motion to exclude expert testimony of a putative class...more
That which is old is new again. The U.S. Department of Justice and plaintiffs’ lawyers are taking aim at non-solicitation agreements restricting mobility of labor. This isn’t something employers usually think about. ...more
Labor & Employment- Attorneys General Convince Burger King, Popeyes, and Tim Hortons to Discard “No-Poaching” Provisions from Their Franchise Agreements...more
Welcome to The Franchise Memorandum by Lathrop GPM, formerly known as The GPMemorandum. Since December 1997, The GPMemorandum has been presenting summaries of recent legal developments of interest to franchisors and companies...more
Franchise systems, and many licensing arrangements contain anti-poaching provisions. These provisions are being tested under the antitrust laws as being anticompetitive. This article will discuss the benefits and burdens of...more