In Vazquez v. Jan-Pro Franchising International, Inc., a decade-old proposed class action against a franchisor, the Ninth Circuit ruled on May 2, 2019, that the recent California Supreme Court case Dynamex Ops. W. Inc. v. Superior Court of Los Angeles, 416 P.3d
Dune Morris Franchise Law
Dune Morris Franchise Law, published by Duane Morris LLP, focuses on legal issues related to franchising, including franchisee and franchisor relationships, compliance with labor and employment laws, wage-and-hour regulations, and class action litigation risks. The blog also covers trademark law as it pertains to franchises, advertising regulations such as native advertising disclosures, and regulatory updates from agencies like the U.S. Department of Labor. It addresses practical legal challenges faced by franchise businesses, including contract disputes, regulatory compliance, and intellectual property concerns.
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Trademark Update: No Standing to Seek Trademark Registration Cancellation
By Duane Morris
By Sheila Raftery Wiggins When applying for a registration for a trademark, the applicant must affirmatively state that it knew of nobody else who had the right to use the same or confusingly similar trademark. Failure to do so is…
DOL Unveiled Alliance with Franchise Restaurant to Improve Wage-and-Hour Compliance
By Duane Morris
By: Sheila Raftery Wiggins The U.S. Department of Labor unveiled its alliance with a sandwich franchisor to help improve the franchisee owners’ compliance with wage-and-hour laws. Under this agreement, the franchisor agreed to share data and swap ideas about promoting…
Native Advertising Is blurry, but Disclosures Must Be Clear
By Duane Morris
By: Sheila Raftery Wiggins “Native advertising” is an advertisement that may blur the distinction between advertising and editorial, video or other content. For example, an advertisement may be integrated into a newspaper website, with a “headline” and then a few…
Commission, Incentive Pay and Nondiscretionary Bonus Are Impacted by DOL’s New Regs
By Duane Morris
By: Sheila Raftery Wiggins The U.S. Department of Labor’s new regulations are effective on Dec. 1, 2016. The new regulations impact exempt employees, federal overtime pay and minimum wage requirements. Significantly, nondiscretionary bonuses, commissions and incentive payments may be used…
Texting Advertisements or Employment Offers May Violate TCPA
By Duane Morris
By: Sheila Raftery Wiggins Potential drivers filed a class action suit against a well-known ride hailing firm in federal court (N.D. Ill.) alleging that text messages sent to potential drivers violate the Telephone Consumer Protection Act (“TCPA”). A sample text…
FCC Seeks Comments on Law Governing Automated Calls to Your Customers
By Duane Morris
By: Sheila Raftery Wiggins Companies make automated calls to customers who owe money. These calls are governed by a federal statute, the Telephone Consumer Protection Act (“TCPA”). When a company violates the TCPA, the damages are calculated for each call. That can be costly. Due…
More States Enact Laws: Franchisors Are Not “Joint Employers”
By Duane Morris
By: Sheila Raftery Wiggins Eight states passed legislation prohibiting a franchisor from being considered an employer or co-employer of franchisee employees, including: Texas, Louisiana, Tennessee, Wisconsin, Michigan, Indiana, Utah and Georgia. Similar legislative efforts were introduced in California, Colorado, Massachusetts,…
E-commerce: Clickwrap Versus Browsewrap Agreement
By Duane Morris
By: Sheila Raftery Wiggins The goal of an e-commerce contract is whether the “reasonable” consumer is aware of the e-commerce contract terms. A browsewrap agreement uses hyperlinks to the contract terms and conditions. A clickwrap agreement requires users to scroll through the terms…
Two Lessons to Avoid a Franchise Price Discrimination/Distribution Lawsuit
By Duane Morris
By: Sheila Raftery Wiggins Design business practices by incorporating the lessons offered by other parties’ lawsuits. The lessons from a recent franchise/commodity distribution federal court case are that: Watch forecasting statements: A franchisor which changes its policy—here, the rent policy…