Franchise Lawyer Blog

Franchising & The Pandemic

It’s not surprising that many retail and other consumer-facing businesses struggled during the pandemic, and some suffered more than others. Businesses that required close customer contact were going to have a harder time navigating through a dangerous virus. However, those who didn’t require close customer contact did more than merely survive, they thrived.  For franchised

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The PRO ACT and Its Impact on Franchising

       On March 9, 2021, the House of Representatives passed the Protecting Right to Organize (PRO) Act (H.R.842). The Pro Act expands various labor protections related to employees’ rights to organize and collectively bargain in the workplace.        Some of the key aspects of the PRO Act include: (1) revising the

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Joint Employer – Recent Developments

Last week, the United States District Court for the Southern District of New York in the case New York v Scalia invalidated the Department of Labor’s (DOL) recently enacted  joint employer rule, more specifically known as the DOL’s Final Rule defining “joint employers” under the Fair Standards Labor Act (FSLA). In the franchising context, the

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Re-Opening New York Franchised Businesses

        COVID-19 impacted New York more than anywhere else in the world, spreading rapidly, especially through New York City, resulting in approximately 30,000 deaths statewide. Because of the overwhelming impact in the state, Governor Andrew Cuomo implemented some of the country’s strictest lockdown orders for his state’s economy (known as the PAUSE

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A Message About COVID-19

Recently, we have received numerous inquiries from clients, including those in the retail and hospitality industries, concerned about the impact that Covid-19 will have on their businesses. Although the landscape appears to be ever-changing, we wanted to send this email to offer you general guidance and practical considerations as well as to highlight important legislature

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A Franchisor’s Due Diligence for International Franchising

       When a U.S. franchise system wants to expand internationally, the franchisor must perform the appropriate due diligence before selling units to franchisees in another country. Franchisors must assess and consider, among other things, foreign franchise rules, local law, cultural barriers and differences, and language barriers. Many franchisors will enter into a master

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Franchise Disclosure Documents and Registration

The proper preparation of a franchise disclosure document (“FDD”) can be complex and the rules governing such preparation are often evolving, so it is beneficial for franchisors to engage a franchise lawyer to handle the task. It is imperative that franchisors are aware that their FDDs must be drafted in accordance with the Federal Trade

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Franchising and Real Estate

          Franchise law often overlaps with real estate law for the simple reason that many franchised businesses need a commercial or retail space in which to operate. When a franchisee first begins the process to join a franchisor’s system, negotiating and finalizing the franchise agreement, along with the proper due diligence,

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Multi-Unit Franchisees and Area Developers

Multi-unit and area development agreements are two more aggressive ways to grow a franchise system. However, with these endeavors come higher stakes and less margin for error. Multi-unit franchisees operate several franchise units and of course, take on the risk of each individual unit. Area developers obtain the right to develop a particular area within

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