• NLRB and the Joint Employer: Is Franchising On the Ropes?

    May 02, 2016 |

    Recent NLRB decisions have rewritten the labor law map in a variety of ways, but nowhere more significantly than in the areas of franchising and outsourcing. With the decision in Browning-Ferris and decision by the NLRB's general counsel involving McDonald's, the definition of a "joint employer" has grown exponentially broader.

  • Court Watch

    May 02, 2016 |

    Third Circuit Affirms Denial of Injunctive Relief to Franchisor, Concluding Concessions of Counsel Disproved Irreparable Harm
    Fifth Circuit Issues Cautionary Note to Franchisees That Plead Their Claims Haphazardly

  • Covenants Not To Compete

    May 02, 2016 |

    Covenants not to compete are not the favorites of courts. Enforcement of such restrictions reduces competition; accordingly, the analysis requires the weighing of various factors and the cases are decided on in a fact-sensitive manner. In Aamco Transmissions v. Romano, the district court elegantly reviewed the specific facts of the case, modified the contractual covenant not to compete, and concluded that the former franchisee did not violate the modified covenant.

  • Will Dave & Buster's ACA Employer-Mandate Plan Design Land It In Hot Water with ERISA?

    May 02, 2016 |

    Under the Affordable Care Act, employers with 50 or more full-time, or full-time equivalent, employees are required to offer qualified health care coverage. These employers are referred to as applicable large employers (ALEs). If these ALEs fail to comply with this "employer mandate," then the employer may be faced with significant penalties. As such, employee counts and categorizations in employer organizations are critical under the ACA, and whether the employer mandate is satisfied.

  • Editor's Note

    April 29, 2016 |

    It is with the deepest regret that we must inform you that this issue of LJN's Franchising Business & Law Alert will be the last.

  • Court Watch

    April 02, 2016 |

    Court Declines to Issue Preliminary Injunction Notwithstanding Franchise Agreement Properly Terminated
    Noncompetition Covenant Not Enforced Where Franchisor Will Not Open Again in Area

  • Non-Reliance Disclaimers and Anti-Waiver Provisions

    April 02, 2016 |

    A number of conflicting decisions over the past year and a half concerning whether provisions prohibiting waiver of duties or liabilities under the New York Franchise Act prohibit franchisors from interposing franchisee "non-reliance" franchise agreement disclaimers when confronting fraud actions brought under the Act makes clear that this critical area of law will remain muddied until the courts decisively rule on the subject.

  • Dismissal of Suit Against TV Program Upheld

    April 02, 2016 |

    A television station's report that two stores in the D'Lites chain of dietary ice cream franchises were mislabeling their "small" portions as low calorie and low carb was "substantially true," and a defamation claim by a franchise owner was properly dismissed, a Manhattan appeals court said on March 15.

  • Online Extra: Chipotle in Trouble Again, This Time With the NLRB

    March 31, 2016 |

    It hasn't been an easy couple of months for Denver-based fast casual food giant Chipotle Mexican Grill Inc. And now a decision from the National Labor Relations Board has shone a negative light on the company's social media policies and labor practices too.