Vol. 14 No. 2 | Spring 2011


Max Schott, II (2013)
Gray Plant Mooty
Minneapolis, MN

Associate Editors
Glenn J. Plattner (2011)
Bryan Cave
Santa Monica, CA

Kristy L. Zastrow (2012)
Dady & Gardner
Minneapolis, MN

Beata Krakus (2013)
Hemker & Gale
Chicago, IL

Forum on Franchising
American Bar Association
321 N. Clark Street
Chicago, IL 60654

Message from the Chair
Last year, at this time, I attempted to wax eloquently as to why the choice of future leaders is so important to an organization. Spurred on by a John Maxwell quote, I went on for some time about how the vibrancy of an organization is directly related to its ability to identify, cultivate and promote its next generation of leaders. This year, I will skip the verbosity and get straight to the point: We have established a Nominating Committee and we need your nominations! Read more...


2011 Nominating Committee Selected
Ronald K. Gardner, Chair of the Forum, is pleased to announce the appointment of the 2011 Nominating Committee. The committee, which is headed by the Immediate Past Chair, is responsible for recommending candidates to fill open positions on the Governing Committee.  Read more...

34th Annual Forum on Franchising: Flying the Flag of Franchising
Charm City calls! The 34th Annual Forum on Franchising will be held on October 19-22, 2011 in historic Baltimore at the Marriott Waterfront, located in Harbor East, Baltimore's premier neighborhood. This year's program is set against the stunning views of Baltimore Harbor with a wide variety of shopping, restaurants and attractions available to attendees, including the National Aquarium, Federal Hill, Fort McHenry, the Baltimore Zoo, Camden Yards and Fells Point, all within a short walk or water taxi ride of the hotel.  Read more...

FDA Publishes Proposed Regulations on Menu Labeling Requirements
In April 2011, the Food and Drug Administration ("FDA") published proposed regulations to implement the menu labeling provisions of the Patient Protection and Affordable Care Act of 2010. The franchise community has been anxiously awaiting the release of the proposed regulations to assess how they may impact franchise systems that offer and sell food and beverages to the public. As part of its rulemaking process, the FDA seeks public comment on several issues related to the proposed regulations by June 6, 2011, and companies who may be affected by these regulations are encouraged to respond.  Read more...

State Taxation of Royalties on Out-of-State Franchisors Continues: KFC Corp. v. Iowa Department of Revenue
In KFC Corp. v. Iowa Department of Revenue (No. 09-1032, 2010), the Iowa Supreme Court recently upheld a state district court decision imposing income tax nexus on an out-of-state franchisor as a result of the franchisor's receipt of royalties from Iowa franchisees. The case is significant because it marks the first time a state supreme court has concluded that the in-state use of an out-of-state franchisor's intangibles by a franchisee satisfies the physical presence test by creating the functional equivalent of a "physical presence" in the state sufficient to establish state income tax nexus. What does this mean for franchisors?  Read more... 



From Darkness to Light: A Survey of How Franchise Lawyers Weathered the Recession and Some Thoughts on the Road Ahead
A few years ago, I was a young in-house franchise lawyer, determined to help my company grow in dynamic fashion. Unbeknownst to me at the time, a sinister character called "recession" was lurking in the shadows, competing for our collective attention and casting a dark cloud upon the franchise community.  Read more...

NASAA Project Group Seeks Input on Multi-Unit Franchising
Multi-unit franchising involves many types of arrangements, including, for example, area development or representation agreements, area or regional franchises, development agent agreements, master franchises, and subfranchises. Franchisors using these arrangements, and other parties involved in these arrangements (area developers, development agents, subfranchisors, etc.), often have questions about their disclosure obligations under the FTC Franchise Rule and state franchise laws.  Read more...        

New Location for California Department of Corporations' San Francisco Office
In case you have not heard, the California Department of Corporations recently relocated its San Francisco office.  Read more... 

Become a California Board Certified Franchise and Distribution Specialist!
The State Bar of California's Board of Legal Specialization invites you to take the 2011 legal specialization exam. The examination is open to active members of the California Bar who have practiced franchise and distribution law for at least three years.  Read more...  

New Books from the Forum on Franchising

Franchise Litigation Handbook

Dennis LaFiura and C. Griffith Towle, Editors

Annual Franchise and Distribution Law Developments 2010
Bethany L. Appleby and William K. Whitner

International Franchise Sales Laws - 2010 Supplement
Andrew P. Loewinger and Michael K. Lindsey, Editors

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The Franchise Lawyer is published by the American Bar Association Forum on Franchising, 321 North Clark Street, Chicago, IL 60654-7598. Requests for permission to reprint should be sent to the attention of Manager, Copyrights and Licensing, via email at copyright@abanet.org or via fax to 312-988-6030.

The opinions expressed in the articles presented in The Franchise Lawyer are those of the authors and shall not be construed to represent the policies of the American Bar Association and the Forum on Franchising. Copyright 2011 The American Bar Association. ISBN: 1938-3231

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