Editor’s Note: This series of posts we’re calling “Around the World” come from a larger piece written by Shannon and published in the October 2014 edition of the International Bar Association’s International Franchising Newsletter. Updates were provided by speakers at
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The Battlefield for Franchising: Vicarious Liability
In late August, the California Supreme Court held in Patterson v. Domino’s Pizza, Inc., that Domino’s is not vicariously liable for the inappropriate conduct by a franchisee’s employee. Specifically, the court held that the Franchisor is not responsible for sexual…
California to Amend Franchise Laws in Response to…Something? Maybe?
On Thursday the California legislature approved a bill amending the state’s franchise laws. Pending signature by Governor Jerry Brown (almost certainly a foregone conclusion), the changes will be official.
As discussed in more detail below, the changes were made to…
Franchisee Insurance: Four Issues You Should Be Thinking About
Franchisors, like many businesses, don’t think about insurance until they need it, and by then, it may be too late. We recently ran across one variant of this problem after a nasty auto accident, followed by the filing of a…
IFA Motion Highlights Discriminatory Intent behind Seattle’s $15 Minimum Wage Law
With the recent enactment of a $15 per hour minimum wage ordinance, the City of Seattle has positioned itself as ground zero for the ongoing struggle over income inequality and wages. In adopting the ordinance, the City explicitly recognized that…
NLRB Says McDonald’s Franchisor is a “Joint-Employer” with Its Franchisees
In a potentially far reaching decision rendered today, the National Labor Relations Board (NLRB) has permitted 43 claimants to proceed with claims against the McDonald’s USA, LLC, franchisor of the McDonald’s restaurant chain, for unfair labor practices allegedly committed by…
Can a Franchisor Terminate a Franchise Without Providing Notice and an Opportunity to Cure?
The question posed by the title of this post is a loaded one, which unfortunately has no clear answer. You may be thinking by now that lawyers are great at providing fuzzy answers to seemingly simple questions (something I can…
California Considers Important Amendments to Franchise Relations Act
In late June, the California Assembly Business, Professions and Consumer Protection Committee passed Senate Bill 610, the Small Business Investment & Protection Act. An earlier version of this Bill died in the California legislature last year, but this year’s version…
Using the Franchise Agreement to Discourage Free-Riding
From a franchisor’s perspective, it is important that all customers receive the same quality product and service offering regardless of what outlet they may visit. The menu of product offerings must be consistent, and the procedures for customer service correctly…
New Washington State Policy May Make Franchisors Responsible for Franchisees’ Industrial Insurance Premiums
“Industrial insurance” is the technical term used in the State of Washington to refer to worker’s compensation. Workers compensation laws are put in place to provide a fund to compensate workers injured while on the job. In exchange for employers’…