Message from the Editor-in-Chief

Are you looking to get more involved in the ABA Forum on Franchising? Boy do I have a deal for you! Writing for The Franchise Lawyer is an easy (dare I say fun) way of drawing on topics relevant to your practice and contributing to the Forum. I encourage you to FIND US AT THE FORUM in Baltimore to discuss potential writing opportunities for this publication. Read more…

The Diversity Caucus and the Adoption of a Diversity Plan

In the fall of 2010, the Governing Committee of the ABA Forum on Franchising approved the creation of the Forum’s Diversity Caucus whose mission is to develop and implement initiatives to support the Forum’s diversity goals. At the encouragement of the ABA, the Forum’s Diversity Caucus has proposed a strategic diversity plan to the Governing Committee, which will be considered at the October 2011 Governing Committee meeting. Read more…

Cold Stone Creamery and Its Franchisees Take Joint Action Against Negative Publicity: A Behind-the-Scenes Look

When a sudden challenge arises, careful consideration and concerted action are necessary to protect the brand. As Cold Stone Creamery recently learned, the likelihood of a successful resolution can be increased when a franchisor works with its franchisee community in evaluating and responding to the challenge. This article provides a behind-the-scenes look at how Cold Stone Creamery and its franchisees did just that in response to CNBC’s Behind the Counter: The Untold Story of Franchising. Read more…

What Law Applies? The Importance of Understanding the Interplay Between Contractual Choice of Law Provisions and State Franchise Laws

Contractual choice-of-law clauses are a relatively standard feature of most franchise agreements, and are generally enforced. But in the franchise context, determining the eventually applicable law is much more complex than just assuming your client will be subject to the law designated in the franchise agreement. This article uses the recent California case, 1-800-Got Junk? LLC v. Superior Court, as a case study to demonstrate the complexities surrounding a choice-of-law clause in a franchise case, including its interplay with state franchise acts. Read more…

Are Franchisees a Franchisor’s Employees Under State Law? The Massachusetts Experience

In a unanimous ruling, Massachusetts’ highest court recently held that a franchisee of a cleaning service franchisor, who was among a group of franchisees that had been found by a federal court to be the franchisor’s employees for state labor law purposes as a result of their misclassification as independent contractors, was entitled to recover significant damages. Some in the franchise community have voiced concern that many systems are at risk as a result, and that franchising in Massachusetts should be curtailed. I disagree, however, because the franchise contract structure reviewed by the Massachusetts courts is materially different from structures used traditionally in most franchise systems. Read more…

Save the Date! – 35th Annual Forum on Franchising

New Books from the Forum: International Franchise Sales Laws – 2011 Supplement