As small local breweries continue growing in popularity throughout the nation, Congress is considering previously introduced legislation that would significantly reduce excise tax rates for small brewers. The Small Brew Act (H.R. 494, http://www.govtrack.us/congress/bills/113/hr494) would amend Internal Revenue Code and reduce excise tax rates by 50% on the first 60,000 barrels for brewers producing
Franchising and Advances in Technology – The Good, The Bad and The Ugly
The advances in technology have undoubtedly opened opportunities for franchisors and franchisees to enhance their business, enhance productivity, improve sales. However, such opportunities carry additional burdens and are not free of risk. Two recent examples of franchisor’s potential liability arising out of technological advances highlight the need to be vigilant.
Data Hacking
The Wi-Fi networks
Proposition 65: Distributor’s Products that Enter California Must Contain a Warning
In 1986, California enacted the Safe Drinking Water and Toxic Environment Act popularly referred to as “Proposition 65.” Cal. Health & Safety Code § 25249.6 (West 2012). Proposition 65 requires that any product or services which contain certain chemicals with the potential to cause cancer or reproductive toxicity to give a “clear and reasonable warning”
Illinois Courts Expand the Enforceability of “No Reliance” Clauses, Opening Door For their Application in Franchise Litigation
Franchisors often include a “no reliance” clause in their franchise agreements, in which the franchisees acknowledge that they have not relied on any information or representation not expressly stated within the franchise agreement itself. The intent of such clauses is to help protect against a claim based on alleged oral or written representations made outside
Impact of Private Equity on Franchising – the Pros and Cons
Leonard Vines (a blog contributor) shares below his insights – both positive and negative – a franchise system should consider when entertaining the idea of a private equity investor. The full article (found here) includes the observations of other industry leaders about private equity’s impact on franchising.
“The increasing control of franchise systems
International Who’s Who Legal dubbed our group a “Midwestern powerhouse”
Congratulations to our Franchise & Distribution practice group. The group was recently honored in the 2012 edition of the International Who’s Who Legal of Franchise Lawyers. The publication dubbed our group a “Midwestern Powerhouse”, which includes John Baer, Leonard Vines, Beata Krakus, and Chris Feldmeir. See the excerpt from the publication below:
“Greensfelder, Hemker &
Eighth Circuit Holds that Missouri State Claim is Not Completely Preempted by the PMPA
On December 3, 2012, the Eighth Circuit reversed a district court’s decision that a Missouri state law claim was completely preempted by the Petroleum Marketing Practices Act (PMPA).
A Missouri plaintiff filed a class action against gasoline station operators, including MFA Petroleum, Casey’s General Stores, and QuikTrip, regarding the grade of motor fuel dispensed with
Living Social Follows in Groupon’s Footsteps and Settles Class Action Lawsuit, Leaving Open Questions as to the Legality of its Two-Tiered Expiration Date Formula and Whether Daily Deal Coupons are Subject to Regulation E at All.
For the past year and a half, various lawsuits have alleged that daily deal coupons, such as those offered by Groupon and Living Social, violate Regulation E’s rules for gift cards because such coupons expire too quickly. Regulation E, found at 12 C.F.R. § 205, et seq., is the Treasury’s official regulations enforcing the
The New FTC Business Opportunity Rule Makes Waves: Impact on Franchise Systems
Disclosure obligations may be as light as a one-page document, but the rule is now broader.
The Federal Trade Commission Business Opportunity rule used to be so limited in scope that it rarely posed an issue for franchisors or those distribution systems structured to avoid franchise laws. If it did apply, the business opportunity seller
Material Change Amendments in Franchise Registration States
Franchisors are usually focused on updating disclosure documents annually. What can oftentimes be overlooked is the ability to amend the offering during the year or the requirement to do so upon the occurrence of certain events. Determining when a “material” change has occurred can be difficult, and navigating the amendment process lacks uniformity in application