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Franchises FTC Franchise Rule Franchisors

Fox Rothschild LLP

Court Grants nearly $49 Million Default Judgment Against Burger Franchisor in First FTC Franchise Lawsuit in over a Decade

Fox Rothschild LLP on

A federal district court recently granted the United States’ Motion for Default Judgment against the quick-service burger restaurant franchise concept, Burgerim Group USA, Inc. and its owner (“Burgerim”). The Federal Trade...more

Fox Rothschild LLP

Not All Payments Qualify as “Fees” under State and Federal Definitions of a Franchise

Fox Rothschild LLP on

A recent court case (Cognex Corporation v. Air Hydro Power LLC) between a distributor and manufacturer is a reminder to franchise attorneys that not all amounts paid by a licensee to a licensor qualify as a “franchise fee”...more

Ward and Smith, P.A.

Commentary on Franchising Myths from the FTC

Ward and Smith, P.A. on

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

Polsinelli

FTC Turns Its Attention to Franchising

Polsinelli on

On Friday, March 10, 2023, the Federal Trade Commission issued a Request for Information (“RFI”) soliciting public comments on various issues pertaining to the franchisor-franchisee relationship, including franchisor supply...more

Lewitt Hackman

Franchisor 101: Preemption Preempted

Lewitt Hackman on

Patel v. 7-Eleven, a case in Massachusetts, has been closely watched since the ABC test took hold of franchise relationships in employee misclassification cases across the country. A putative class of 7-Eleven franchisees...more

Fisher Phillips

Massachusetts Franchise Owner-Operators May Be Employees of Franchisors

Fisher Phillips on

The Massachusetts Supreme Judicial Court just held that 7-Eleven franchisees may be employees of 7-Eleven under Massachusetts wage and hour law. The March 24 decision in Dhananjay Patel v. 7-Eleven, Inc. will have significant...more

Lewitt Hackman

New Franchise Regulations on the Horizon?

Lewitt Hackman on

On September 16, 2020, Rohit Chopra, one of the five commissioners on the Federal Trade Commission (FTC), declared on Twitter that “[franchise] regulators must stop unfair, deceptive, and discriminatory practices that target...more

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