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A number of conflicting decisions over the past year and a half concerning whether provisions prohibiting waiver of duties or liabilities under the New York Franchise Act prohibit franchisors from interposing franchisee “non-reliance” franchise agreement disclaimers when confronting fraud actions brought under the Act makes clear that this critical area of law will remain muddied until New York’s appellate courts, and conceivably the Court of Appeals, decisively rule on the subject.
NLRB and the Joint Employer: Is Franchising On the Ropes?
Recent NLRB decisions have rewritten the labor law map in a variety of ways, but nowhere more significantly than in the areas of franchising and outsourcing. With the decision in Browning-Ferris and decision by the NLRB's general counsel involving McDonald's, the definition of a "joint employer" has grown exponentially broader.
Will Dave & Buster's ACA Employer-Mandate Plan Design Land It In Hot Water with ERISA?
Under the Affordable Care Act, employers with 50 or more full-time, or full-time equivalent, employees are required to offer qualified health care coverage. These employers are referred to as applicable large employers (ALEs). If these ALEs fail to comply with this "employer mandate," then the employer may be faced with significant penalties. As such, employee counts and categorizations in employer organizations are critical under the ACA, and whether the employer mandate is satisfied.
Third Circuit Affirms Denial of Injunctive Relief to Franchisor, Concluding Concessions of Counsel Disproved Irreparable Harm
Fifth Circuit Issues Cautionary Note to Franchisees That Plead Their Claims Haphazardly
Covenants not to compete are not the favorites of courts. Enforcement of such restrictions reduces competition; accordingly, the analysis requires the weighing of various factors and the cases are decided on in a fact-sensitive manner. In Aamco Transmissions v. Romano, the district court elegantly reviewed the specific facts of the case, modified the contractual covenant not to compete, and concluded that the former franchisee did not violate the modified covenant.
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