An article I wrote about “hidden franchises,” that is, business arrangements that meet the technical definition of a franchise but do not identify themselves as such, is featured in the January 2013 issue of Nevada Business magazine.
Category: Legal Perspectives
FTC Issues Guidance to Franchisors Regarding Disclosure of Franchise Territories
The Federal Trade Commission recently issued new guidance that will affect how franchisors disclose whether they grant exclusive territories to franchisees.
Who Decides Arbitrability: The Court Or The Arbitrator?
A recent Maryland court decision in a franchise dispute demonstrates the importance of a carefully-drafted arbitration clause.
Does Your Franchise Agreement Address Group Arbitration?
A popular contractual tool for franchise systems is a mandatory arbitration provision. A pair of recent decisions suggest that, where a franchisor’s franchise agreement does not directly address the issue of class- or group-wide arbitration, franchisees may be able to consolidate their claims and proceed against the franchisor as a group. The cases illustrate the importance for a franchisor of ensuring that its franchise agreement’s arbitration clause is drafted carefully.
FTC Announces Revised Monetary Exemptions Under The Franchise Rule
The Federal Trade Commission (the “Commission”) recently announced an amendment to its “Disclosure Requirements and Prohibitions Concerning Franchising” (16 C.F.R. Part 436) (the “Franchise Rule”) revising the monetary limits for three of the listed exemptions.
Clumsy Drafting In Franchise Agreements Can Haunt You: Hamden v. Total Car Franchising Corp.
A recent decision from the United States District Court from the Western District of Virginia highlights the importance of careful drafting of franchise agreements and, in particular, dispute resolution provisions.
Forward Franchising 