As required every four years, adjustments to the FTC Franchise Rule’s monetary thresholds for certain exemptions are on the way.
The exemptions under the FTC Franchise Rule are intended to exclude franchise transactions in which the prospective franchisee doesn’t need the protection the rule is intended to provide. As several exemptions available under the FTC
This post was updated on April 8, 2020.
In recent days, several U.S. states have announced accommodations for franchise filings.
California announced an extension of time for calendar year franchisors to file their 2020 renewals from April 20 to June 20 in light of the COVID-19 pandemic. Although the renewal filing fee of $475 remains
A new publication from Greensfelder’s Business Services practice group regarding Economic Injury Disaster Loans (EIDL) may be relevant to many franchise systems. The purpose of the EIDL program is to provide economic support to small businesses in order to continue operations during the COVID-19 pandemic. The procedure and terms of the EIDLs are determined on
On March 18, 2020, the State Corporation Commission of Virginia extended current franchise registrations and exemptions under the Virginia Retail Franchising Act that would have expired between March 16, 2020, and April 6, 2020, by 21 days. The order indicates that if the COVID-19 emergency continues, one or more additional extensions may be granted by
March and April mean franchise registration renewal season for franchisors. Updating the franchise disclosure document (FDD) in a timely fashion is often a major challenge. COVID-19 has thrown much of the world, including franchisors, into a new, very uncertain reality. People and businesses are scrambling to respond and adapt. Yet, March and April remain the
On April 1, 2019, the U.S. Department of Labor (DOL) offered a simplified test in a Notice of Proposed Rulemaking to determine whether two entities should be considered joint employers under the Fair Labor Standards Act (FLSA). The FLSA provides that two entities can be jointly and severally responsible for an employee’s wages, and thus
The National Labor Relations Board (NLRB) on Jan. 25, 2019, overturned its 2014 ruling in FedEx Home Delivery and returned to its long-standing independent-contractor standard. In affirming its reliance on the traditional common-law employment classification test, the board clarified how entrepreneurial opportunity factors into its determination of independent-contractor status.
In FedEx, the board held
In a case pending in the Northern District of Illinois, a court granted a motion to dismiss Petroleum Marketing Practices Act (PMPA) claims brought pertaining to two unbranded motor fuel stations. The court, however, refused to dismiss claims on the question of the validity of termination pursuant to the PMPA as to a third station.
After repeated delays, the compliance deadline for the Food and Drug Administration’s (FDA) new federal menu labeling rules — requiring disclosure of nutrition information for standard menu items — is set for May 7, 2018. After repeatedly being postponed, the FDA announced that the rules will not be postponed any longer and will be enforced
A Georgia federal court recently found that a person who did not sign a franchise agreement was nevertheless bound by it. That was good news for a franchisor caught between two parties who claimed no responsibility for violating the franchise agreement by opening a competing business in the same franchise location.
Franchisor Cajun Global LLC