Franchise and Trade Regulation Update - August 2014

Appeals Court Upholds "Silent Fraud" Jury Verdict Under Franchise Investment Law
By: David L. Cahn, Esq.

Take-away: If your franchise offering document is silent on key issues, you can be liable if your people “oversell” to a potential franchisee. Better to deal with the issue in carefully vetted writing than to be surprised by something your people say off the cuff.

Franchise and Trade Regulation Update - January 2014

Recent Franchise Non-Compete Cases Show Unpredictability of Enforcement
By: David Cahn, Esq.

Summary: Recent cases involving attempted enforcement of covenants not to compete by franchisors show the unpredictability of the results in such cases. However, careful reading of the factual circumstances of the cases also supports the adage that “bad facts make bad law.” So it behooves franchisors to check whether they have a sympathetic case on the facts when trying to enforce their non-competes.

Franchise and Trade Regulation Update - July 2013

Is California's "Good Faith" Franchise Legislation Necessary or Meaningful?

On May 28, the California Senate passed S.B. 610, which is an amendment to California’s Franchise Relations Act (the “CFRA”). The bill has been introduced in California’s General Assembly and was referred to that body’s Judiciary Committee on June 10.

Franchise and Trade Regulation Update - December 2012

"Gangland" Judicial Opinion is a Reminder of Liability for Franchisees and Their Franchisors

By: David L. Cahn, Esq.

In Ford v. Palmden Restaurants, LLC, the Court of Appeals of California issued a strong reminder to both restaurant franchisees and their franchisors of their potential liability for criminal conduct that takes place on a restaurant’s premises. While the legal principles at issue differ for franchisees and franchisors, this potential liability is one that neither can ignore.

Franchise and Trade Regulation Update - May 2012

Franchising and its Growth Alternatives
By: David L. Cahn, Esq.

Compliance costs and ongoing challenges of obtaining financing for new businesses have led many companies seeking growth to search for alternatives to franchising. These efforts, while quite understandable, have legal and practical implications. To understand whether they are worth the effort involved, it is important to analyze the nature of your business and its growth objectives by attempting to answer these types of questions: