Franchise Focus

Absolute USA, Inc. v. Harman Professional, Inc.: A Thorough Analysis of the Elements of a Franchise and the Statute of Limitations Under the California Franchise Investment Law

Feb 14, 2023Legal AlertsCalifornia, CFIL

Executive Summary In a slip opinion, Judge Maame Ewusi-Mensah Frimpong of the United States District Court for the Central District of California analyzed a dealer agreement between the plaintiff and defendant and found that the plaintiff failed to establish the existence of a franchisor-franchisee relationship because plaintiff failed to demonstrate the existence of a marketing system or franchise fee. The […]

Staying in the FAST Lane: An Overview of new 2023 Employment laws for California Franchisors and Franchisees

Feb 13, 2023Legal Alerts, Thought LeadershipCalifornia, Employment Law

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 […]

NLRB Dismisses Charges Alleging Interference with Employee Collective Bargaining Rights Against Starbucks In La Quinta, California

Dec 9, 2022Legal AlertsEmployment Law, Labor Law, NLRB

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 […]

Governor Signs AB257 into Law on Labor Day Paving the way for Untenable Fast Food Councils

Sep 5, 2022Legal Alerts, Statute Tracking, Thought LeadershipCalifornia, Employment Law, Joint Employer, Labor Law, Unionization

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 […]

California Senate and Assembly Pass AB257 On Same Day

Aug 29, 2022Statute TrackingCalifornia, Employment Law, Joint Employer, Labor Law, Unionization

Executive Summary After amending AB257 on August 25, the Senate voted to pass the bill. Immediately thereafter on the same day, the Assembly voted to pass AB257 in concurrence with Senate Amendments. The bill now moves to the Governor’s desk for signature which is expected to occur on Labor Day. Analysis After three readings, on August 29, 2022, the Senate […]

California Senate’s Last Minute Amendment Removes Joint Employer Liability … For Now

Aug 25, 2022Statute TrackingCalifornia, Employment Law, Joint Employer, Labor Law, Unionization

Executive Summary After passing all of the necessary committees in both the Assembly and the Senate, AB257 has been amended to remove joint employer liability from AB257. While there are numerous other changes that are focused on aspects of the Fast Food Sector Council will operate, this amendment removes the most significant threat to the franchise industry in the State […]

California Senate Appropriations Committee Passes AB257

Aug 11, 2022Statute TrackingCalifornia, Employment Law, Joint Employer, Labor Law, Unionization

Executive Summary After briefly being placed on the suspense file, the California Senate Appropriations Committee passed AB257. The bill now moves to the full Senate for consideration. Analysis On August 11, 2022, the Senate Appropriations voted to pass AB257 by a vote of 5 ayes and 2 noes. The bill passed the Senate Judiciary Committee after it was placed on […]

California Senate Judiciary Committee Passes AB257 As Amended

Jun 28, 2022Statute TrackingCalifornia, Employment Law, Joint Employer, Labor Law, Unionization

Executive Summary The California Senate Judiciary Committee has voted to pass AB257 as Amended on June 16 and refer the bill to the Appropriations Committee. It is appearing increasingly likely that AB257 will pass this year. Analysis On June 28, 2022, the Senate Judiciary Committee voted to pass AB257 by a vote of 7 ayes, 1 no, and 3 no […]

California Senate Labor, Public Employment and Retirement Committee Amends and Passes AB257

Jun 13, 2022Statute TrackingCalifornia, Employment Law, Joint Employer, Labor Law, Unionization

Executive Summary The California Senate Labor, Public Employment and Retirement Committee has voted to pass and amend AB257. The amendments remain focused on the powers of the new Fast Food Sector Council but the Committee added additional clauses incentivizing collective bargaining. The bill now moves to the Judiciary Committee. Analysis On June 13, 2022, the California Senate Labor, Public Employment […]

Baird v. OsteoStrong Franchising LLC: Yet Another Lesson in How to NOT Start a Franchise Lawsuit

Mar 9, 2022Legal AlertsCalifornia, CFRA, Jurisdiction

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. […]