3 Key Takeaways | Is Franchising Doomed? The 2024 Version
Is Franchising Doomed?
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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
A bill passed by the California Senate on May 22, 2024, Senate Bill No. 919 (“Bill 919”), will address a gap in the regulation of franchise sales – namely, a lack of transparency regarding the role and background of...more
On April 23, 2034, the Federal Trade Commission (FTC) issued a final rule intended to ban the use and enforcement of most non-compete clauses signed by workers. The new rule is not in effect yet. It will become...more
Attorneys representing Latin American brands in the United States should understand that entry into the US market requires careful strategy, planning and due consideration for the variety of legal issues that arise from...more
Drive down almost any busy street, and you'll see numerous examples of well-known franchises, from McDonald's to Ace Hardware. You may have considered opening a franchise and wondered about the potential rewards and...more
Federal law requires franchisors to update their franchise disclosure documents (“FDD”) within 120 days after their fiscal year end (“FYE”). State registrations must also be renewed annually. Here are ten best practices for...more
A poke restaurant franchisee in Ohio sued the franchisor for violation of the California Franchise Investment Law (CFIL) and other claims. The franchisor defendants moved to dismiss the claims. A California federal court...more
On April 14, Kilpatrick Townsend’s Brand Licensing and Franchise Partner Marc Lieberstein joined Jason Adler, General Counsel at Cellairis, a global franchisor in the wireless accessory and repair retail space, Janaki J....more
For the first time in over a decade, the Federal Trade Commission is considering changes to its Franchise Rule. The Rule represents an effort by the Commission to prevent unfair and deceptive practices by franchisors against...more
A federal court in Cleveland rejected a California franchisee’s claim that an Ohio-based ice cream franchisor violated the California Franchise Investment Law (CFIL). The claim failed because the franchisee could not show it...more
It’s the time of year when most franchisors start to think about FDD updates. Under the Federal Trade Commission (FTC) Franchise Rule, the FDD must be updated within 120 days after a franchisor’s fiscal yearend. For...more
When business owners contemplate expansion and growth of their business enterprise and brand, they must first make a fundamental decision on strategy and method of expansion. Should they (a) expand on their own, utilizing...more
The Federal Trade Commission (“FTC”) has requested public comments on its Trade Regulation Rule entitled “Disclosure Requirements and Prohibitions Concerning Franchising” (the “Rule”). The Rule makes it an unfair or deceptive...more
The Federal Trade Commission (FTC) seeks public comment regarding its Trade Regulation Rule entitled, “Disclosure Requirements and Prohibitions Concerning Franchising” (the “Rule”)....more
Hot dog franchisor, Charlie Graingers, was unable to obtain dismissal of a federal lawsuit brought by franchisees alleging fraud, misrepresentation and breach of fiduciary duty....more
An ice cream parlor franchisor in Ohio, Handel Enterprises, Inc., must defend claims that it violated the California Franchise Investment Law (CFIL) for failing to disclose its amended franchise disclosure document (FDD) to a...more
The consequences to an unwitting franchisor can be severe when it fails to provide disclosure documents required by franchise law. Most franchise laws provide for rescission of the franchise agreement, allowing the franchisee...more
The California Department of Business Oversight ("DBO") recently issued three Orders against franchisors for violating California's franchise laws....more
Most experienced franchisors know better than to make claims about profits franchisees can expect when those claims do not match the information in the franchisor's Franchise Disclosure Document. However, if a franchisor or...more