Recent Franchise Articles

The following articles relate to our Franchise Practice. We represent regional franchisors, franchisees, and distributors in retail service, consumer products, human resources, and home healthcare industries.

Franchises – Employee Non-Compete Clauses Under The Gun

The Illinois Attorney General sued the Jimmy John’s fast food franchisor earlier this month [1], seeking a declaratory judgment that Jimmy John’s non-compete covenants violate the state’s Consumer Fraud and Deceptive Business Practices Act. All employees, including sandwich makers and delivery drivers, are barred from working at any business that earns more than 10% of its revenue from selling submarine and other… Read more »

New California CFRA Provisions Increase Franchisee Protections, Franchisor Risk

In response to perceived overreaching and abuse by franchisors, the California legislature amended the Franchise Relations Act (CFRA) strengthen franchisees’ rights regarding terminations, non-renewals, and franchise transfers. The changes are effective January 1, 2016. Termination Rights Franchisors retain the right to terminate franchisees without providing a right to “cure”, for reasons such as the abandonment… Read more »

Franchisors Risk Liability as “Joint Employer” Under NLRB Decision

Browning-Ferris Industries of California, Inc. 362 NLRB No. 186 (Aug. 27, 2015) As one commentator noted, the most important franchise case of 2015, Browning Ferris,” isn’t a franchise case”.  By a 3-2 vote, the U.S. National Labor Relations Board (NLRB) overturned 30 years’ of precedent in adopting a new, broader, more lax definition of “joint employer”. According to… Read more »