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Franchisee in the Jailhouse

Franchisee in the Jailhouse

One huge dilemma a franchisor can face is when a franchisee is accused of a crime that has nothing to do with the operation of the franchised business. First, you have to look to the terms of your franchise agreement. Most franchise agreements will allow a franchisor to terminate the franchise agreement if a franchisee is convicted of a crime or engages conduct that reflects poorly on the franchisor’s brand

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Paperless Filing for State Franchise Registrations

Paperless Filing for State Franchise Registrations

  This week, the Wisconsin Department of Financial Institutions sent out an email confirming that Wisconsin will only accept electronic filing (or “e-filing”) of all franchise registration applications beginning on October 1, 2016. With this announcement, Wisconsin will become that first franchise registration state that does not allow franchisors to submit registration applications in the mail.  This communication also present us with a good opportunity to review the status of

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Avoid the Pitfalls of Offering Gift Cards Through Your Franchise System

Avoid the Pitfalls of Offering Gift Cards ThroughYour Franchise System

Do you have system-wide gift card program?  Have you talked to your attorney regarding the federal and state requirements related to gift cards?  What happens to the gift cards sold by a franchise location that subsequently closes?  If you offer gift cards through your franchise system and haven’t spoken to your attorney, it’s definitely time to have that conversation. The Credit Card Accountability Responsibility and Disclosure Act (the “Act”) regulates

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Mediation Needs More Bite

Mediation Needs More Bite

Although pre-litigation mediation is an option for franchisors and franchisees to cut legal costs, stay out of a courtroom and get most legal disputes taken care of in short period of time, many do not cooperate, rush into court and in most instances courts do not enforce mediation provisions like they do with arbitration provisions. A growing majority of legal professionals will encourage mediation as a way to their clients

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Don’t Miss out on the Springboard Event for Emerging Franchisors!

Don’t Miss out on the Springboard Event for Emerging Franchisors!

We are fast approaching the 4th annual Springboard Event. Each year, franchise law firm Fisher Zucker and franchise PR firm Fishman PR team up with Entrepreneur Magazine to host the preeminent event for emerging brands. The past 5 years have shown emerging brands to be a major population in the franchising world with 100% of IFA’s new membership since 2011 having less than 60 units. This trend has not slowed:

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NO REFUNDS WHEN IT COMES TO CURRENCY EXCHANGE PROVISIONS IN FRANCHISE AGREEMENTS

NO REFUNDS WHEN IT COMES TO CURRENCY EXCHANGE PROVISIONS IN FRANCHISE AGREEMENTS

  Franchisors regularly use comprehensive provisions in their franchise agreements in an attempt to control how fees and other amounts payable to themselves and, in certain circumstances, their approved suppliers. When a franchisor decides to enter the international arena, the stakes are heightened and host of new issues such as withholding taxes, stamp duty, currency of payment and exchange controls can often times take center stage in the pre-sale negotiating

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IT’S MORE THAN YOUR CORE… GLOCALIZE-ING YOUR BRAND

IT’S MORE THAN YOUR CORE… GLOCALIZE-ING YOUR BRAND

  Typically, newer franchisors seem to be a bit overwhelmed when facing their first few international franchise transactions. While the prospect of getting an oftentimes large, up-front franchise fee or master franchise adds an undeniable level of excitement to the deal, franchisors must also deal with (a) the general apprehension associated with letting another be the steward of their brand in a country that is more than a 10-hour flight

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Franchisor and Franchisee as Joint-Defendants; What to do When You’ve Been Roped into Your Franchisee’s Litigation and Can’t Get Out.

Franchisor and Franchisee as Joint-Defendants; What to do When You’ve Been Roped into Your Franchisee’s Litigation and Can’t Get Out

This scenario is familiar to most franchisors.  Your franchisee has been sued and you have been  named as a defendant because you have deeper pockets.  Unfortunately, the court will not let you out on a motion to dismiss and you are stuck engaging in the excruciating exercise of discovery and possibly trial in a matter you had nothing to do with.  You and your franchisee have an independent contractor relationship!

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California federal judge grants class action status to employees of a McDonald’s franchise in their lawsuit against McDonald’s

California federal judge grants class action status to employees of a McDonald’s franchise in their

A July 7 decision by a California federal judge has granted class action status to a group of employees of a McDonald’s franchise in their claims against McDonald’s for alleged employment law violations.  The case Ochoa et al. c. McDonald’s Corp., et al. centers on whether McDonald’s Corp. is liable for various labor law violations committed by its franchisee, including the failure to pay overtime wages and provide required breaks,

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