A district court in Georgia recently granted a Motion for Preliminary Injunction filed by HOA Franchising, LLC’s, the franchisor of the Hooters restaurant chain (“Hooters”), against one of its former restaurant franchisees, MS Foods, LLC (“Franchisee”), but in doing
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Court Grants nearly $49 Million Default Judgment Against Burger Franchisor in First FTC Franchise Lawsuit in over a Decade
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 Commission (“FTC”) filed a complaint against the defendants alleging…
Federal Court Throws Out NLRB’s Controversial Joint Employer Rule
In a move welcomed by employers nationwide, a federal court judge in Texas has vacated the National Labor Relations Board’s proposed joint employer rule.
Copyright: mipan / 123RF Stock Photo
The decision, handed down late on March 8, 2024, by…
Cautionary Tale: Bakery Products Distributors Plausibly Deemed Employees Under Vermont Employment Practices Act
A recent court case issued by a federal district court in Vermont (Provencher v. Bimbo Bakeries U.S.) emphasizes the distinction between independent contractors and employees under the Vermont Employment Practices Act (the “Act”). Wishing for an entitlement to…
My Start-Up or Emerging Franchise System Negotiated with a Prospective Franchisee! Now What?
New and emerging franchise systems are often very eager to sign those first franchisees. All too often, they are willing to make concessions to get the franchisees on board, despite their franchise attorney’s recommendation against negotiating terms in the standard…
IFA Convention Takeaway: Franchise Founder Succession Planning Doesn’t Have to be a Single Lane Path
One of the most highly anticipated portions of the IFA Annual Convention each year is the case study workshop conducted at the Annual Leadership Conference. All 350 attendees are provided a real-world scenario based on an actual franchise system’s…
WARNING! Replacement Importers May Be “Successor to a Brewer” under New York Law
In a matter of first impression, the Supreme Court of New York held that protections afforded to beer wholesalers under the New York Alcoholic Beverage Control Law (“NY ABC Law”) obligate an importer to honor a distribution agreement entered into…
Go Franchise Broker or Bust?
One of the most hotly debated and discussed questions among franchise system owners and operators is whether to engage outside franchise sales agents, brokers, franchise sales outsource companies (FSOs), or all of the above, when attempting to grow a…
Be Careful with Your Demands When Converting Existing Licensees to Franchisees!
A recent case decided by the Ohio Court of Appeals reminds new franchisors to tread carefully when converting existing licensees to future franchisees. In the case of Okolish v. Town Money Saver, Inc., , the trial court found an arbitration…
Not All Payments Qualify as “Fees” Under State and Federal Definitions of a Franchise
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”…