Each New Year in California comes with several new laws that impact the workplace, including those in the franchising industry. With each year that passes, the California Legislature reminds us that their intent is to provide employees across our state with vast worker protections and rights, placing a greater burden on employers to maintain legal compliance. This year is no […]
Executive Summary: A Starbucks store in La Quinta, California was recently successful in defending itself against allegations that the store engaged in unlawful union-busting tactics. In a decision issued December 6, 2022, the National Labor Relations Board (“NLRB”) held that Starbucks did not violate Section 8(a)(1) of the National Labor Relations Act, which prohibits employers from interfering with or restraining […]
Executive Summary Governor Newsom signed AB257 into law. Unless there is legal action, it will go into effect in 2023. Analysis On Labor Day, September 5, 2022, Governor Newsom signed AB257 into law. As part of his signing statement, Governor Newsom stated the following: “California is committed to ensuring that the men and women who have helped build our world-class […]
Executive Summary: In an unpublished decision, Judge Nunley of the United States District Court for the Eastern District of California granted the defendant franchisor’s motion to transfer the matter from California for all non-California franchisees who initiated the lawsuit and issued an order to show cause for the sole California franchisee on why its action should be transferred as well. […]
Executive Summary: In an unpublished decision, Circuit Judge Griffin of the United States Court of Appeals, Sixth Circuit, affirmed the United States District Court for the Middle District of Tennessee’s dismissal of Defendants’ California Franchise Relations Act (“CFRA”) counterclaim and affirmed the District Court’s grant of summary judgment on Defendants’ breach of contract counterclaim relying on brand standards related language. […]
Executive Summary: In an unpublished decision, Judge Fischer of the United States District Court for the Central District of California found in favor of 7-Eleven and against franchisees on the issue of whether 7-Eleven franchisees are employees. While the judge acknowledged the rationale of the District Court of Massachusetts in Patel v. 7-Eleven, Inc., he ultimately found that 7-Eleven does […]
Executive Summary: In an unpublished decision, Judge Wilson of the United States District Court for the Central District of California granted a motion to transfer to Florida, rejected a franchisee’s arguments regarding the applicability of California’s forum selection clause rule, and ruled that a development agreement does not qualify as a franchise under the CFRA. Citation: Pinnacle Foods of California, […]
Executive Summary: In an unpublished decision, Magistrate Judge Hanna of the United States District Court for the Western District of Louisiana ruled against a motion to transfer to California made by a California member / franchisee even where there was no forum selection clause. Citation: Krispy Krunchy Foods LLC v. Jenna Marketing LLC, 2021 WL 1916151 (W.D. La. Apr. 16, […]
Executive Summary: In a published decision, Judge Domenico of the United States District Court for the District of Colorado ruled against a franchisee’s motion to dismiss where the franchisee challenged the validity of a Colorado forum selection clause. Citation: Postnet International Franchise Corporation v. Wu, 521 F.Supp.3d 1087 (D. Col. 2021). Relevant Background: PostNet International Franchise Corporation (“Franchisor”) maintains its […]
Executive Summary: In an unpublished decision, Judge Staton of the United States District Court for the Central District of California denied a plaintiff franchisee’s motion or summary judgment regarding fraud actions asserted against a franchisor consultant. Citation: Shaw v. Ultimate Franchises, Inc., 2021 WL 678687 (C.D. Cal. Jan. 15, 2021). Relevant Background: Ultimate Franchises, Inc. (“Franchisor”) operated a beauty salon […]