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Court rules that truck drivers are not "franchisees"

Smith Gambrell & Russell LLP
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USA
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March 26 2012

A California court held that two truck drivers failed to adequately allege that the "Driving Opportunities" they purchased constituted "franchises" under the California Franchise Investment Law (CFIL

Vermont franchise relationshiptermination legislation

Smith Gambrell & Russell LLP
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USA
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March 26 2012

Vermont legislators have proposed a new franchising relationship and termination law

Legislation proposes sweeping changes to California franchise law

Smith Gambrell & Russell LLP
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USA
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March 26 2012

Legislation introduced to the California State Assembly on February 24, 2012 would provide strong protection to franchisees by significantly amending California's existing Franchise Relations Act

Franchisees deemed "independent contractors"

Smith Gambrell & Russell LLP
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USA
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March 26 2012

A California court held that two janitorial services franchisees were independent contractors, not employees of the franchisor, and thus were not entitled to workers' wages and job benefits

Timelines of franchisee termination

Smith Gambrell & Russell LLP
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USA
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January 6 2012

The Alabama Supreme Court ruled that a motor vehicle manufacturer could terminate a dealer due to the deteriorating condition and appearance of the dealership's facility even though the manufacturer was aware of the appearance problems more than 180 days before giving notice of termination to the franchisee

Franchisor's liability for workers' compensation benefits

Smith Gambrell & Russell LLP
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USA
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January 6 2012

The Kentucky Supreme Court recently found that a sandwich shop franchisor was not responsible for paying workers' compensation claims on behalf of a franchisee who failed to maintain workers' compensation insurance

FTC clarifies franchise rule's "exclusive territory" disclosure

Smith Gambrell & Russell LLP
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USA
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November 14 2012

On October 16, 2012, the Federal Trade Commission answered an additional "frequently asked question" regarding the 2007 amendments to its Franchise Rule

Arbitration clause valid despite claim of economic duress

Smith Gambrell & Russell LLP
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USA
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November 14 2012

Applying Connecticut law, a federal district court upheld the validity of an arbitration clause in an investment advisor franchisee's arbitration agreement despite the franchisee's claims of economic duress and unequal bargaining power

FTC announces increases in exemption thresholds

Smith Gambrell & Russell LLP
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USA
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July 16 2012

The FTC recently announced that dollar thresholds for various exemptions have increased, as contemplated under the 2008 Franchise Rule amendments

Massachusetts law tabled; Vermont vote upcoming

Smith Gambrell & Russell LLP
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USA
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July 16 2012

Massachusetts has tabled a law similar to California's proposed "Level Playing Field of Small Businesses Act," discussed in the previous issue of our Franchise Law Newsletter