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A properly negotiated lease is critical to protecting your franchised business as well as the franchise network and brand. For franchisors, entering into a commercial lease agreement is an important step as the location out of which a business operates is critical to its success. Indeed, the adage “location, location, location” is much more than a cliché: Your business should be in a prime spot with heavy traffic and other quality (non-competing!) businesses nearby that attract…
Perhaps you’ve heard about the California Legislature’s efforts to target misclassification of employees in the gig economy. While the law passed in September 2019 had obvious impacts on companies like Uber and Lyft, it can also significantly affect franchisors. AB 5 increases the likelihood that a franchisee or franchisee’s employees will be viewed as employees of the franchisor, which dramatically increases the franchisor’s obligations to them. Read on to learn how legislation in California may…
On Sunday, January 12, 2020, the U.S. Department of Labor (DOL) released the final version of its rule interpreting joint employer status under the Fair Labor Standards Act (FLSA), which regulates minimum wage and overtime. The DOL adopted a four-factor test, which considers whether an alleged joint employer:…
New NASAA FDD State Cover Pages for 2020 When you update your FDD for 2020, the first few pages of your will look very different than they have in the past.  NASAA has updated the state cover page requirements.  NASAA updated the cover pages with the intention of better helping franchisees understand and use the FDD. Below are summaries of the changes to the 2020 state cover pages.  As you familiarize yourself with the changes,…