Franchising & Distribution

Franchising & Distribution

Franchise Law Update Blog

https://franchiselaw.foxrothschild.com/

For those with an interest in the world of franchising, the Franchise Law Update blog will become a regular stop for you. Our bloggers discuss not only the regulatory aspects of franchising, but also diverse topics such as business finance, employment, litigation and the protection of intellectual property including trademarks and copyrights. We understand that while franchising has its unique aspects, franchise businesses confront the same opportunities, changes and challenges as any other business.

Recent Blog Posts

  • Are COVID Immunity Laws Good for Franchising? (This post solely reflects the views of the author, and not that of Fox Rothschild or any of its other attorneys.) While I am not opposed to immunity laws generally, I am not fan of immunity that is too broad. Given that stance, I have grave concerns about the liability protections and COVID immunities being offered to business in the context of the HEALS Act and other legislation at the Federal and state level. Why? Because I am not sure they... More
  • HEROES + HEALS = ?????: COVID Relief 3.0 is a Mystery This is like watching sausage being made – it isn’t pretty. The House passed its $3 Trillion COVID rescue package (the HEROES Act) about a month ago. But the Senate’s HEALS Act is still a work in progress with an unpredictable future. And of course the internally split Senate must negotiate final legislation with the House. In the meantime, workers and businesses are forced to battle the virus, navigate challenging re-openings, and handle employment complications without much comfort as to... More
  • What Do You Know About Cryptocurrency? (Probably Not Enough) Five years ago, “Bitcoin”, “blockchain”, and “cryptocurrency” were not in the common lexicon.  Five years ago, Bitcoin, the seminal cryptocurrency, was valued at approximately $275.00 (a staggering 2,749,900% return on investment for those who obtained it for less than a penny in 2010), but very few accepted it as a method of payment.  In fact, the first person to buy a pizza with Bitcoin, a Florida programmer, had to route his transaction through England. Bitcoin (BTC) captured the public’s attention when... More
  • The Green Phase Rules Have Changed in Pennsylvania I blogged a while ago about the Green Phase of reopening in Pennsylvania, and how it did not mean “go” but something more nuanced. Something like “proceed with caution”. Today, Governor Wolf called for even more vigilance, out of concerns based on modeling done by Children’s Hospital of Philadelphia showing that the coronavirus is sweeping back into the Northeast from the South and West. Consequently, effective July 16, 2020, at 12:01 am,  Governor Wolf has issued a new order directing targeting... More
  • Key Data Privacy Considerations for Vendor Management Key takeaways from my partner, Odia Kagan’s recent presentation titled “Service Providers v. Data Processors: What Should Your Agreement Address?”  with Lexology and Exterra: As the “business,” the “buck stops with you” as it relates to liability to the individual customer respecting processing their data. Between you and your service provider/data processor, you can and should impose liability for tasks that you are engaging them to do for you. To comply with your legal obligations under the General Data Protection Regulation, California Consumer... More
  • A Summer Potpourri (Part 2): States Litigate Joint Employer Rule and NASAA speaks In Part 1 of this series, we discussed the recent actions taken by Congress regarding the PPP program as well as the efforts by the Fed. In today’s post, we dig deeper into the challenge by state Attorneys General to the Department of Labor’s final joint employment rule moved forward in the Southern District of New York, and the North American Securities Administrators Association issued guidance on financial performance representations in light of the Coronavirus. States Litigate: DOL joint employer rule... More
  • A Summer Potpourri (Part 1): Congress Legislates and the Fed Weighs In Amidst the continuing pandemic, summer brings faint hope that someday things might return to business as usual. For the franchise industry, recent events offer a hint of normality. In Part 1 of this early summer round-up, we take a look at the actions taken by Congress to legislate some flexibility into Payroll Protection Plan loans and how the Federal Reserve expanded its Main Street lending programs to reach small businesses. Congress Legislates: The PPP Flexibility Act             Facing abrupt revenue interruption due... More
  • The 90 day Franchise Bankruptcy Solution The CARES Act has amended the Bankruptcy Code to provide an expedited and easier version of a business bankruptcy proceeding. We now have “Subchapter 5” for small business and individual debtors. This process fulfills a sweet spot for small franchisors and franchisees. It anticipates a Chapter 11 type result, without the administrative headaches and expense, within 90 days of filing. The purpose of this new section of the Bankruptcy Code is to allow business debtors and certain individuals with debts below... More
  • Pennsylvania: “Green” Reopening Phase Does Not Mean “GO!” If you’re in the Keystone State, you know that many counties will be moving into the Yellow and Green Phases of Governor Wolf’s Reopening Pennsylvania Plan on June 5th. This blog previously covered the requirements of the Yellow Phase.  But what does “Green” mean? One thing that “Green” definitely does not mean in is “Go”. That said, there a number of broader re-openings in the Green Phase as opposed to the Yellow Phase: Continued telework is “strongly encouraged”. Businesses with in-person operations must... More
  • Washington v. Washington: State of No-Poach The Department of Justice backed off no-poach challenges in franchise agreements in 2019, but the state doubled down. The result? Washington state challenged a raft of no-poach/no-hire provisions in 225 franchise systems, resulting in agreements requiring franchisors to agree not to enforce the offending provisions not just in Washington but nationwide. On April 28, 2020, Washington AAG Rao declared victory, characterizing the DOJ’s approach as “somewhat misguided.” Does Washington State’s victory celebration mean that other franchisors needn’t worry about enforcing such... More