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
In this podcast, Adam Siegelheim, Shareholder in Stark & Stark’s Franchise Group, is joined by Richard Coyne of WithumSmith+Brown to discuss the recent merger between Burger King and Tim Hortons. Adam and Rick discuss the tax implications of the merge as well as tax inversion deals.
Continue Reading Burger King and Tim Hortons Border Crossing Merger
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.
Continue Reading Franchisee’s Fraud Claim Rejected Under New Jersey Law
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?”…
Continue Reading Are Fines an Effective Tool for Franchisors?
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.
Continue Reading NLRB Finds McDonald’s and its Franchisees are a Joint Employer
In last week’s blog posting we discussed the recent decision of Yogo Factory Franchising, Inc. v. Edmond Ying, et al., US District Court D. New Jersey 2014), in which the court enforced the arbitration clause contained in the franchise agreement. Also notable in this case was the court’s decision reaffirming that the New Jersey Consumer Fraud Act did not apply to the sale of franchises.
Continue Reading New Jersey Consumer Fraud Act does not Apply to Sale of Franchises
In Yogo Factory Franchising, Inc. v. Edmond Ying, et al., US District Court D. New Jersey 2014), the court enforced the arbitration clause and held that the arbitration clause should be applied to all the franchisee’s claims arising from the franchise agreement.
Continue Reading New Jersey District Court Enforces Arbitration Provision in Franchise Agreement
The New Jersey Appellate Division recently held that insurance agents were not considered “franchises” under the New Jersey Franchise Practices Act (Mario DeLuca v. Allstate New Jersey Insurance Company (Superior Court of New Jersey, Appellate Division No. A-2724-11T4 (2014)).
Continue Reading Insurance Agents did not Qualify as “Franchises” Under the New Jersey Franchise Practices Act
In this podcast, Adam Siegelheim, Shareholder in Stark & Stark’s Franchise Group, discusses the differences between franchising and licensing a business, and which option may be best for you.
Continue Reading The Differences Between Franchising and Licensing a Business
In the Matter of the Estate of Stephanie Anderson v. Denny’s Inc., et al. (U.S. District Court, D. New Mexico, November, 2013), an employee was killed during a robbery at the restaurant. The court denied Denny’s motion for summary judgment and held that the issue of whether Denny’s, as the franchisor, was vicariously liable for the franchisee’s failure to provide a safe working environment would be submitted to the jury to determine.
Continue Reading When is a Franchisor Vicariously Liable for the Actions of its Franchisees?