FRANCHISE LAW WITH ZING
On December 7th, the US Court of Appeals for 9th Circuit handed down an opinion in Red Lion Hotels Franchising, Inc. v. MAK, LLC, 2011 WL 6061516 (9th Cir., Dec. 7, 2011). Of particular note is the court’s conclusion that the “franchisee bill of rights” under the Washington Franchise Investment Protection Act (FIPA) applies if […]
The current Chinese Franchise Regulations, which took effect on May 1, 2007, require franchisors to complete a regulatory filing and to provide disclosure before they may offer franchises in the PRC. Franchisors also must satisfy other requirements, such as the infamous “2+1 rule” (requiring a franchisor to have two company-owned units operating for at least […]
Domino’s Pizza is not vicariously liable for an automobile accident caused by a pizza deliveryman, the Maine Supreme Court has ruled. A pizza deliveryman was in a car accident with a man on a motorcycle. The motorcyclist sued the pizza store as well as Domino’s Pizza, which had franchised the store. He claimed that Domino’s […]
We wanted to pass along the attached decision from the Sixth Circuit Court of Appeals yesterday involving La Quinta Inns and a former franchisee that we thought might be of interest to you. The Sixth Circuit reached some helpful conclusions regarding enforcing system change in hotel systems, enforcing liquidated damages in hotel franchise agreements, and […]
Last week, in a unanimous decision, the U.S. Supreme Court found that for the purpose of federal court jurisdiction, a corporation’s “principal place of business” is limited to where its “nerve center” is located (typically, at its corporate headquarters). In Hertz Corp. v. Friend, No. 08–1107, the Court considered an appeal that stemmed from a […]
Tucked into the health insurance reform bill that recently passed in the House of Representatives was a provision labeled “NUTRITION LABELING OF STANDARD MENU ITEMS AT CHAIN RESTAURANTS AND OF ARTICLES OF FOOD SOLD FROM VENDING MACHINES.” A copy of the relevant portion of the bill is attached. This bill is similar to an industry-sponsored […]
