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Log In / Register | Aug 14, 2018
Legal news that affect small businesses and franchises, or legal advice for franchise owners

The Myth of Secrecy (and Other Problems) in Franchise Arbitration

Arbitration is heralded as a way of providing for the just and efficient resolution of disputes.  Frequently arbitration fulfills this promise, but too often it does not. 

California Franchise Law Exam Scheduled for October

California is the only state in the Union that has a franchise legal specialist certification issued by its bar. However, in order to obtain the franchise law certification, an applicant must be practicing franchise law and pass the state’s one-day examination.

Ugly Truth #2: Many Commonly Utilized Handbook Policies Expose Employers to Liability Courtesy of NLRB

The National Labor Relations Board (“NLRB”) is the federal agency responsible for enforcing labor law in relation to union election, collective bargaining agreements between unions and employers, and unfair labor practices.  Unbeknownst to many employers, the National Labor Relation’s Act’s (“NLRA”) prohibition against unfair labor practices also extends to non-union employers. 

Franchisee Loses Suit over Non-Compete Clause in Renewal Franchise Agreement

A veterinary hospital franchisor waived the non-compete clause in its original franchise agreement with its franchisee, but when it came time for renewal, the franchisor said no deal unless the franchisee agreed to the non-compete clause. The franchisee had competing businesses that were there at the time of the original contract, disagreed with the newly enforced non-compete clause, and sued the franchisor for breach of contract and other claims.

Judge Calls Subway ‘Footlong’ Lawsuit a ‘Racket’ to Benefit Only Lawyers

The class-action lawsuit claiming damages because Subway’s footlong subs were alleged to actually be shorter was big news back in 2013. But in a ruling published last Friday, Chicago-based Judge Diane Sykes, who may be President Trump’s next U.S. Supreme Court nominee, reversed a lower court half-million-dollar settlement and penned some harsh words about the lawyers for the plaintiff.

Ugly Truth #1: The Best Employee Handbook in the World Will Not Prevent a Lawsuit (but a Bad One Could Help the Plaintiff Win)

Every business is different, and there is no “one-size-fits-all” employee handbook.  Your handbook should directly reflect how your company actually operates, its culture and its expectations.

U.S. Government Could Withhold $87 Million from Illinois over Soda Tax

The Cook County (where Chicago is located), Illinois soda tax, which went into effect on August 2, is not only facing several lawsuits, but the U.S. Department of Agriculture has weighed in, saying in a letter to the Illinois Department of Human Services that taxing sugary drinks bought through SNAP (the food stamps program) is a violation of federal law.

Former Holiday Inn Owners Sue and Lose over Franchisor Refusal to Renew Franchise Agreement

Jay Z. Dalwadi and Jay Shree Kapi spent millions building out a Holiday Inn hotel in downtown Houston in 2000 after receiving assurances from the franchisor, they say, that they could anticipate little problem in renewing their franchise agreement down the road. But in 2013 the franchisor refused to renew after receiving offers from others to build a Holiday Inn nearby.

St. Louis Minimum Wage Forced Down by State

While the trend for minimum wages across the country is up, St. Louis will be forced by state legislation to drop its minimum wage by 23 percent as of August 28. The difference between city and state minimum wage philosophy appears to be the difference in viewpoints between Democrats and Republicans.

Richard Solomon

I have not written on Blue MauMau for some time now, and just received notice of Richard's death from his family.