Franchise Focus

Servpro Industries, Inc. v. Woloski: Court of Appeals Affirms Franchisor’s Right to Protect Franchise System from Reputational Harm

Mar 4, 2022Legal AlertsCFIL, Reputational Harm

Executive Summary: In an unpublished decision, Circuit Judge Griffin of the United States Court of Appeals, Sixth Circuit, affirmed the United States District Court for the Middle District of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. […]

California Assembly Makes Minor Amendment to AB257

Jan 27, 2022Statute TrackingCalifornia, Employment Law, Joint Employer, Labor Law, Unionization

Executive Summary After passing the Assembly on January 20, 2022, the Assembly made one more minor amendment to AB257 before it moves to the Senate for consideration. Analysis On January 27, 2022, the Assembly chose to delete two sentences from AB257. Specifically, the Assembly deleted the following passage: After amendment, the Assembly passed AB257 again, this time with a vote […]

California Assembly Amends AB257 and Passes AB257

Jan 20, 2022Statute TrackingCalifornia, Employment Law, Joint Employer, Labor Law, Unionization

Executive Summary After AB257 failed to pass the Assembly last June, the Assembly amended AB257 and was able to pass the bill. Analysis AB257 has been reintroduced by Assembly Members Holden, Carrillo, Low, and Luz Rivas with Coauthors Assembly Members Mia Bonta, Gipson, Kalra, McCarty, Muratsuchi, and Santiago. Addressing concerns raised from the previous year that led to AB257 falling […]

Haitayan v. 7-Eleven: District Court Finds Franchisor does not Exercise Enough Control over Franchisees for them to be Considered Employees

Sep 8, 2021Legal AlertsABC Test, Borello Test, California, CFIL, Employment Law, Independent Contractor

Executive Summary: In an unpublished decision, Judge Fischer of the United States District Court for the Central District of California found in favor of 7-Eleven and against franchisees on the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 […]

AB257 Fails on Assembly Floor … but Isn’t Dead Yet

Jun 3, 2021Statute TrackingCalifornia, Employment Law, Joint Employer, Labor Law, Unionization

Executive Summary After three readings, AB257 failed to pass the California Assembly. The bill may be reconsidered by the Assembly in January 2022. Analysis On June 3, 2021, the California Assembly considered AB257 and the bill failed to receive the 41 votes necessary to pass after three readings. Specifically, AB257 received 38 ayes, 27 noes, and 14 no votes recorded. […]

California Assembly Committee on Appropriations Passes AB257

May 20, 2021Statute TrackingCalifornia, Employment Law

Executive Summary The California Assembly Committee on Appropriations passed AB257 as amended on April 28, 2021. The bill now moves to the full Assembly for consideration. Analysis On May 20, 2021, California Assembly Committee on Appropriations passed AB257 with 12 ayes and 4 noes. The bill will now move to the California Assembly for consideration. Looking Forward The primary jurisdiction […]

California Assembly Makes Minor Amendment to AB257

Apr 28, 2021Statute TrackingCalifornia, Employment Law

Executive Summary The California Assembly has made several small amendments to AB257. While most are not material, two would likely allow additional employment claims to proceed. Analysis On April 28, 2021, the Assembly amended AB257. While most amendments are technical terminology changes to the bill, two changes are substantive. Those are as follows: 1473. (a) A fast food restaurant franchisee […]

California Assembly Committee on Judiciary Passes AB257

Apr 27, 2021Statute TrackingCalifornia, Employment Law, Joint Employer, Labor Law, Unionization

Executive Summary The California Assembly Committee on Judiciary passed AB257 without amendment five days after the California Assembly Committee on Labor and Employment. The bill now moves to the Assembly Committee on Appropriations for consideration. Analysis On April 27, 2021, California Assembly Committee on Judiciary passed AB257 with 7 ayes, 3 noes, and 1 NVR. The bill will now move […]

California Assembly Committee on Labor and Employment Passes AB257 on Party Lines

Apr 22, 2021Statute TrackingCalifornia, Employment Law, Joint Employer, Labor Law, Unionization

Executive Summary The California Assembly Committee on Labor and Employment passed AB257 along party lines. The bill now moves to the Assembly Committee on Judiciary for consideration. Analysis On April 22, 2021, California Assembly Committee on Labor and Employment passed AB257 BY A 5-2 vote along party lines. The bill will now move to the California Committee on Judiciary. Looking […]

Pinnacle Foods of California, LLC v. Popeyes Louisiana Kitchen, Inc.: Court Rules Development Agreement does not Qualify as a Franchise Under the CFRA

Apr 21, 2021Legal AlertsCalifornia, CFRA, Development Agreement, Federal Court, Forum Selection Clause

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, […]