Category Archives: Franchise

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Adam Siegelheim, Esq. Recognized as Franchise Times “Legal Eagle” for 2016

Posted in Franchise, Stark News

Stark & Stark would like to congratulate Shareholder Adam J. Siegelheim, Chair of the firm’s Franchise Practice, for being named by Franchise Times Magazine as a 2016 Legal Eagle. Mr. Siegelheim was even selected as a featured Legal Eagle. Legal Eagles are selected each year from nominations by their clients and peers and are recognized as the top lawyers in franchising…. Continue Reading

Franchise Your Business at the 2015 National Restaurant Association Show

Posted in Franchise, Stark Events

Join Stark & Stark’s Franchise Group at Booth #4768 during this year’s NRA show at McCormick Place in Chicago, IL from May 16-19, 2015. At the event, Shareholder Adam J. Siegelheim will moderate the educational seminar, How to Franchise Your Restaurant to Others: The Process Untangled, which will be held in room S404d on Sunday, May 17, from… Continue Reading

Three Shareholders Recognized as Franchise Times “Legal Eagles” for 2015

Posted in Franchise, Stark News

Stark & Stark would like to congratulate Shareholders Adam J. Siegelheim, Rachel L. Stark and Eric S. Goldberg, members of the firm’s Franchise Group, for being named by Franchise Times Magazine as Legal Eagles for 2015.  Legal Eagles are selected each year from nominations by their clients and peers and are recognized as the top lawyers in franchising. Only 193 attorneys nationwide… Continue Reading

The Implications of a Franchisor as a Joint Employer

Posted in Franchise

The decision of the National Labor Relations Board (“NLRB”) in July 2014 to authorize the filing of administrative complaints against McDonald’s USA, LLC (“McDonald’s”), the largest franchisor of restaurants in the United States, and recent court decisions, highlight one of the hottest issues in franchise law. Are your franchisees and their employees actually your employees?… Continue Reading

Maintaining Strong Franchisor-Franchisee Lessons: Lessons learned from Apple’s “Gift”

Posted in Franchise

In addition to unveiling the new iPhone and Apple Watch, Apple’s CEO, Tim Cook, also recently announced that the approximate 500 million iTunes users would also be receiving a free digital copy of U2’s latest album, Songs of Innocence. The album would be automatically downloaded and appear in each user’s iTunes library without the person… Continue Reading

New Jersey Franchisees Claim that they are Employees of Franchisor

Posted in Franchise

In Naik v. 7-Eleven, Inc., (U.S. District Court. D.N.J., Civil No. 13-4578), certain 7-Eleven franchisees in New Jersey alleged that they are employees, not independent contractors, of the franchisor, and that the franchisor violated the federal Fair Labor Standards Act (FLSA) and other New Jersey statutes.  7-Eleven made a motion to dismiss, which was denied… Continue Reading

Franchisee’s Fraud Claim Rejected Under New Jersey Law

Posted in Franchise

We have discussed the court’s enforcement of the arbitration provision contained in the franchise agreement and the court’s re-affirmation that the New Jersey Consumer Fraud Act does not apply to the sale of franchises. Another noteworthy aspect of the court’s decision is the discussion of the heightened standard under New Jersey law to successfully assert a fraud claim.

Are Fines an Effective Tool for Franchisors?

Posted in Franchise

A common question that we receive from our franchisor clients is, “Can we update our FDD and franchise agreement permitting the franchisor to impose fines on franchisees for non-compliance?” The simple answer is that while you can update your documents to permit the imposition of fines, the real question franchisors should be asking is, “Are fines an effective tool to minimize instances of non-compliance with System standards?”

NLRB Finds McDonald’s and its Franchisees are a Joint Employer

Posted in Franchise

The National Labor Relations Board Office of the General Counsel has created a firestorm in the franchise community with its recent decision that McDonald’s and its franchisees will be treated as joint employers with respect to allegations that they violated the rights of employees. The NLRB’s decision strikes at the heart of the franchising business model, which is based on franchises being independently owned and operated businesses.