Franchise Lawyer Blog

What Rights do Franchisees have under the New York Franchise Sales Act?

The declaration of policy accompanying the New York Franchise Sales Act, N.Y. Gen. Bus. L. § 680 et seq., (NYFSA) states that “it is the intent of this law to prohibit the sale of franchises where such sale would lead to fraud or a likelihood that the franchisor’s promises would not be fulfilled.”  The NYFSA

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New York Minimum Wage to Rise to $15 per Hour

New York State, and particularly New York City, is becoming one of the most expensive places in the nation to operate a small business.  New legislation is affecting the bottom line of small businesses across the State including many franchisees trying to maximize the return on their business investment.  On April 4, 2016, New York

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Will the New Federal Overtime Law Affect my Business?

On May 18, 2016, President Obama announced the publication of The Department of Labor’s Final Rule updating Federal overtime regulations.  The Final Rule focuses primarily on updating the salary and compensation levels needed for Executive, Administrative and Professional workers to be exempt.  According to the Department of Labor, the Final Rule, which becomes effective on

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Working for the Competition – How State Legislation Banning or Limiting Enforcement of Non-Compete Agreements May Affect Your Franchise

The subject of non-compete agreements, a hot-button issue in franchising, has come to a head in Massachusetts, where just yesterday, the House of Representatives voted unanimously to approve limits to non-compete agreements. The New York Times reported this is an emerging trend in a number of states in recent years. The Massachusetts bill imposes strict

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A Fifteen-Dollar Dilemma

A hot topic facing many state and local legislatures across the country is whether to implement a fifteen-dollar minimum wage. This year, the States of California and New York passed bills to gradually increase the minimum wage to $15 per hour. The State of Oregon has passed a bill raising the minimum wage to nearly

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Gift Card Programs – It’s The Thought That Counts?

For gift-givers, the gift card is the perfect solution to the man-who-has-everything, the birthday-you-forgot-about and for walking the tightrope of generous-but-slightly-impersonal required for say, the office gift pool or a co-worker’s bridal shower. For franchise systems, the gift card is a great revenue-creating tool. It can help capitalize on the holiday-shopping crowds, can increase traffic

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Franchising Non-Competes

It is safe to say that nearly all franchise agreements contain a covenant against competition, or a non-compete clause.  These clauses generally limit the activities a franchisee can engage in while he/she is a franchisee, and following the end of the franchise relationship.  Courts (with the exception of California) generally enforce such restrictive covenants so

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Franchising and Price Maintenance – Part One

Antitrust law concerns itself in part with resale price maintenance (“RPM”), sometimes more harshly referred to as price fixing. Historically, “horizontal” price maintenance, that is, price agreements between two parties at the same level of the retail chain (such as Costco and Sam’s Club) has been “per se” illegal. This means the mere fact that

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Franchisor/Franchisee Joint Employer Status

The issue of franchisor/franchisee joint employer status continues to evolve. On August 27, 2015, the National Labor Relations Board (“NLRB”) issued a decision, commonly referred to as Browning-Ferris, which altered the NLRB’s standard for determining joint-employer status under the National Labor Relations Act (the “Act”). Although this case does not involve a franchisor-franchisee relationship, this

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Franchise Franchised Franchising

The title of this blog post is of course a shameless play for search engine optimization. But it also serves to illustrate a point. At Einbinder & Dunn, we have become deeply immersed in the business of franchising and the franchising of businesses. The concept is familiar to many people but typically not fully understood.

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