Corporate Compliance

By A. Binford Minter on June 14, 2019

Approximately one third of all franchise systems in the U.S. are service franchises. Services franchises can offer business services (e.g. insurance, printing), services related to residential and commercial real estate and fixtures (e.g. landscaping, plumbing), or personal and consumer services (e.g. education, health care). As with all goods-focused franchise systems, the franchisee territory is often a primary source of disputes between franchisees and franchisors. Service franchises, however, often contain a unique, territory-related feature: national account programs.…

Hanzo Blog

Real-World Social Media Investigations: Omar and Jenny Ambuila

By Justin Kreamer on June 12, 2019

You know what’s helpful when you’re trying to keep a multimillion-dollar international bribery scheme going? A bachelor’s degree in finance. And, if the allegations against Omar Ambuila and his family are true, he figured out how to get his daughter, Jenny, that degree—using funds from his bribery scheme. You know what’s not so helpful? A penchant for oversharing everything you’ve bought—hundreds of thousands of dollars in designer clothes, jewelry, and bags, not to mention fancy…

Franchise Law Update

Dinner on Demand: Franchising and Meal Prep Delivery

By Craig R. Tractenberg on June 9, 2019

A meal kit contains the ingredients necessary to prepare a meal, and many are intended to be balanced and healthy. Meal kits are being marketed for all occasions to provide freshly prepared meal options. Kits answer not only the question of “What is for dinner,” but also, “Do I have everything I need?” These kits also provide a solution to those who want to eat healthy, allowing them to customize their order. The growth rate is…

Subject to Inquiry

SEC Adopts Regulation Best Interest

By Emily P. Gordy & Kiran V. Somashekara on June 7, 2019

On June 5, 2019, the Securities and Exchange Commission adopted, by a 3-1 vote, Regulation Best Interest (“Reg BI”) which, in the words of Chairman Clayton, would “substantially enhance the broker-dealer standard of conduct beyond existing suitability obligations.” The Chairman also noted: “the standard of conduct draws from key fiduciary principles and cannot be satisfied through disclosure alone.” The Commission also passed the new Form CRS Relationship Summary and two interpretations under the Investment Advisers…

Franchise Law Update

Examining Franchise “Influencers” – Who is Driving that Franchise Sale?

By Eleanor Vaida Gerhards on June 6, 2019

Mark Siebert, CEO of the well-known franchising consulting firm iFranchise Group, authored a very interesting article in a recent issue of Franchise Times magazine about “influencers” in franchise sales. As a corporate and regulatory transactional franchise attorney, I represent both franchisors (in the sale) and franchisees, multi-unit owners and area developers (in the purchase) of franchise units. Helping a start-up franchise system navigate the sale of one of its first units is exciting as…

Hanzo Blog

Meet Team Hanzo: Aidan Randle – Conde, Data Scientist and Puzzle Master

By Sarena Regazzoni on June 6, 2019

Social20Graphic20-Meet20Team20Hanzo20-20Aidan20Randle-Conde20-20Data20Science.png

Look out Will Shortz, there is a new type of puzzle master on the scene. Although, the puzzle master I interviewed is not developing crosswords for the New York Times or to confound even the most astute puzzle aficionados on NPR’s Sunday Puzzle. Hanzo’s Data Scientist, Aidan Randle – Conde is an innovative problem solver who uses data from the ultimate puzzle, the world wide web, and pieces it together to uncover the…

Money Laundering Watch

Congressional Funding Bill Pursues Approval of Financial Services for Marijuana Industry Through the (Temporary) Backdoor

By Brian N. Kearney on June 4, 2019

As we have blogged, there is perplexing, significant and ongoing uncertainty regarding just how federal criminal and Bank Secrecy Act laws will be – or will not be – enforced against financial institutions providing banking services to marijuana-related businesses (“MRBs”). As our blog has discussed, recent bipartisan efforts in the 116th Congress to provide a level of federal protection to financial institutions providing MRBs access to the banking system have been potentially promising and…

Franchise Law Update

Did You Know? NASAA Releases New Instructions

By Emily I. Bridges on June 4, 2019

On May 19, 2019, the North American Securities Administrators Association (NASAA) adopted new state cover sheets and state effective dates page for franchise disclosure documents. Beginning on January 1, 2020, the FDD must now include three specific cover sheets prepared in accordance with the instructions and samples promulgated by NASAA. All of these new pages are required to appear directly behind the cover page of the FDD, before the main body of the FDD containing…

Government Contracts Legal Forum

The U.S. Announces Endorsement of OECD’s Principles for Responsible AI

By Kris D. Meade, Rebecca Springer, Kate M. Growley, CIPP/G, CIPP/US & Laura J. Mitchell Baker on June 4, 2019

Following the announcement of the White House’s Executive Order on Maintaining American Leadership in Artificial Intelligence (EO) and the Department of Defense’s (DOD) Artificial Intelligence Strategy (AI Strategy) in February, as reported on here, the United States recently endorsed the Organization for Economic Co-operation and Development Council’s (OECD) Recommendation on Artificial Intelligence (Recommendation) – the world’s first intergovernmental policy guidelines for Artificial Intelligence (AI). In the Recommendation, the OECD sets forth the “Principles on…

Delaware Chancery Law Blog

Chancery Grants Inspection of Books and Records to Facebook Investors Concerning Data Breach

By Carl Neff on May 31, 2019

On May 31, 2019, the Court of Chancery issued a 57-page memorandum opinion ordering Facebook Inc. to provide certain corporate books and records to various plaintiff investors, in the case of In re Facebook Inc. Section 220 Litigation, Consol. C.A. No. 2018-0661-JRS (Del. Ch. May 31, 2019), in a dispute filed under Section 220 of the Delaware General Corporation Law (“DGCL”). Plaintiffs’ books and records demand was brought following “one of the sharpest single-day market…