Category Archives: Franchise Law
5 Most Common Reasons for Disputes Between Franchisees and Franchisors
Franchise opportunities exist in almost every industry, from gyms to schools to auto repair facilities, with fast food, personal services and retail being some of the most popular. There are approximately 790,492 franchise establishments in the U.S. that support nearly 8.4 million direct jobs, $825.4 billion of economic output for the U.S. economy, and… Read More »
Franchising and Licensing: Weighing the Pros and Cons of Each
If you are looking to start a business, you may be considering purchasing a franchise. But what’s the difference between going into a franchise, and simply purchasing a license to use someone else’s trademark, logo, or other information? Pros and Cons of a Franchise A franchise is a much more involved transaction than a… Read More »
Federal Court Invalidates Part of ‘Joint Employer’ Rule—Here is What it Could Mean for Franchise Law in Florida
In September, the United States District Court for the Southern District struck down a portion of the DOL’s new ‘joint employer’ rule. The decision came after New York—and sixteen other states—filed a lawsuit to stop the implementation of the new standard. Notably, Florida was not among the states seeking to block the revised ‘joint… Read More »
Legal Guide for Franchised Businesses Reopening Amid the COVID-19 Pandemic
As businesses in Florida continue to reopen in the wake of the coronavirus pandemic, there are some legal considerations for owners of franchised businesses. We have prepared a guide for franchised businesses reopening amid the COVID-19 pandemic. Employment-Related Claims and Employee Safety Like all other companies, franchised businesses must prioritize their employee safety when… Read More »
Four Ways the COVID-19 Pandemic is Affecting Franchisor-Franchisee Relationships
The coronavirus outbreak is having an enormous impact on businesses throughout the country. Many companies have, at least temporarily, been forced to suspend or reduce operations. Other firms are dealing with serious disruptions. For franchisors and franchisees, the COVID-19 pandemic presents are some unique challenges. Here, our West Palm Beach franchise law attorneys highlight… Read More »
Florida Franchise Law: Does a Franchisor-Franchisee Relationship Carry a Fiduciary Duty?
To form a successful commercial relationship, franchisors and franchisees must work together. By the very nature of the business, they share some important common interests. At the same time, franchisors and franchisees are distinct companies—their business interests are certainly not fully aligned. The Florida Franchise Act (FFA) establishes some basic standards for how these… Read More »
Why Do You Need a Franchise Lawyer in Florida?
The legal aspect of the franchisor-franchisee relationship can be complicated, which is why franchisors and franchisees can benefit from having a West Palm Beach franchise law lawyer by their side. Whether you are considering purchasing a franchise to become a franchisee or creating a franchise to become a franchisor, you need a West Palm… Read More »
8 Things to Consider When Negotiating a Franchise Agreement
If you have decided to purchase a franchise, do not underestimate the importance of the franchise agreement. Under Florida’s franchise law, you have a right to negotiate a fair franchise agreement. Contrary to popular belief, franchise agreements are negotiable, even when it seems that the franchisor carries all the negotiating power. A skilled West… Read More »
Territorial Protection for Franchisees in Florida: Know Your Rights
Becoming a franchisee can be an excellent commercial opportunity. It is an opportunity that many entrepreneurs have successfully pursued — according to the latest government data, there are approximately 760,000 franchise businesses operating nationwide. Some of the largest franchises in the United States have thousands of locations. For franchisees, the protection of exclusive territorial… Read More »
Florida Franchise Law: Holding a Franchisor Liable for Material Misrepresentations
Becoming a franchisee can be a lucrative and enticing business opportunity. That being said, for your company to truly thrive, you must work with a reliable franchisor. By the very nature of the commercial relationship, franchisees are required to place some level of trust in their franchisor. When the franchisor improperly or unfairly violates… Read More »
Florida Franchise Law: What is an ‘Inadvertent Franchise’?
Before entering into a franchise arrangement, it is crucial that both franchisors and franchisees have a clear understanding of their rights and responsibilities. These companies should operate under a carefully drafted franchise agreement that has been reviewed by an experienced attorney. However, unbeknownst to many people, Florida law makes it possible for a franchisor-franchisee… Read More »
Florida Appeals Court Rules Against Auto Dealers in Franchise Law Case
On January 9th, 2019, Florida’s Fourth District Court of Appeal ruled in favor of an auto manufacturer (the franchisor) in a franchise law dispute. In the case of Maserati of Fort Lauderdale and Maserati of Palm Beach v. Maserati North America, the appeals court overturned a lower court’s decision — ruling that the automaker… Read More »
Former Burger King Employee Files a Lawsuit, Seeking Class-Action Certification
According to reporting from Forbes, a former Burger King cook named Jarvis Arrington has filed a lawsuit against the company. He is seeking class-action certification on behalf of every employee who has worked at any of the company’s franchise location from 2010 through 2018. The legal claim in this case centers around the anti-poaching… Read More »
Lawsuit: Florida Massage Franchise Location ‘Hid’ Sexual Abuse
Recently, the Sun Sentinel filed a report on a very disturbing case arising out of South Florida. According to allegations raised in a recent lawsuit filed in a court in Palm Beach County, several female customers of Massage Envy, the largest chain of franchise massage spas in the entire country, were victims of sexual… Read More »
EEOC Files Disability Discrimination Lawsuit Against Florida Franchisee
On July 10th, 2018, the Equal Employment Opportunity Commission (EEOC) announced that it has filed a disability discrimination lawsuit against a Florida-based franchise location of Pacific Sunwear (PacSun). This company offers California-branded clothing and apparel products targeted at teens and young adults. According to the legal complaint filed by the EEOC, PacSun unlawfully refused… Read More »
Florida Court Upholds Non-Compete Clause in a Franchise Law Dispute
Earlier this year, the United District Court Southern District of Florida issued a decision in the case of Peterbrooke Franchising of Am., LLC v. Miami Chocolates, LLC, a lawsuit in which a franchisor and a franchisee were locked in a dispute over the enforceability of a non-compete agreement. At Pike & Lustig, LLP, our… Read More »
Forum Selection Dispute: Tim Hortons Franchisees Suing Parent Company Over Provision Forcing Contract Disputes Into a Miami Court
On May 3rd, 2018, The Star reported that Canadian fast food giant Tim Hortons is a facing a lawsuit from an organization representing a large group of American franchisees. According to the report, Great White North Franchisee Association (GWNFA), which filed the lawsuit, represents nearly half of all U.S.-based Tim Hortons franchisees. The dispute… Read More »
Florida Federal Judge Awards Franchisor Attorneys’ Fees in FDUTPA Case
On March 26th, 2018, a Florida federal judge awarded a franchisor more than $730,000 in attorneys’ fees after the company successfully defended itself against a Florida Deceptive and Unfair Trade Practices Act (FDUTPA) lawsuit. In this post, our experienced West Palm Beach franchise law lawyers analyze they key facts of this case, and we… Read More »
Franchise Law Implicated in Latest South Florida Immigration Raids
On January 10th, 2018, the Miami New Times reported that U.S. Immigration and Customs Enforcement (ICE) agents raided five 7-Eleven franchise locations in South Florida. These South Florida immigration raids were a part of nationwide step up in enforcement against employers. Beyond the myriad of other legal issues that are at stake, these raids… Read More »
Franchise Law Watch: NLRB Overrules the Browning-Ferris Joint Employer Standard
In 2016, our Miami franchise law attorneys discussed the joint employer standard, which, at that time, had recently been amended by the National Labor Relations Board (NLRB). The NLRB had just moved to enact a far broader test to determine which companies qualify as joint employers. Since that time, the political landscape has shifted… Read More »
