Many franchisors utilize so-called “no-poach” clauses in their franchise agreements, and such clauses may be structured in a way that limits a franchisee’s ability to hire employees of other, same-brand franchisees and/or employees of the franchisor. Recently, a group of state attorneys general and prominent legislators began pressing franchisors to cease use of so-called “no-poach”…
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In this day and age, most employers have considered the possibility of wage-hour liability. Savvy employers understand that wage-hour liability comes in many different forms, and two of the most talked about have been “misclassification” and unpaid overtime. Misclassification can occur in one of two ways: either the employer classifies a worker as an independent…
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El Pollo Loco – their slogan is “Crazy you can taste” – is popular for Mexican-style food such as tacos, burritos, enchiladas, and quesadillas and, in particular, citrus-marinated, fire-grilled chicken. The Costa Mesa, California chain operates over 460 company-owned and franchised restaurants in the southwest, and is a favorite with many locals. In Lancaster, Calif.,…
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Scheck v. Burger King, the seminal case on good faith and fair dealing, is still alive and well according to a 12-member California jury after a contentious month-long trial which pitted grilled chicken giant El Pollo Loco, Inc. against one of its top performing franchisees. After weeks of testimony from current and former executives of…
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As I sit here, just a few days before Christmas, I am watching the weather change outside my office window from relatively warm (for Minnesota), to downright cold. And like the weather, the one thing that we can always count on as the seasons change, is change in the political and legal landscape affecting business…
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Americans file 15 million lawsuits each year. Not every lawsuit has merit. Not every lawsuit has issues that are clearly defined in black and white. But there are many hungry lawyers eager to represent a plaintiff on a contingency-fee basis, which means you have to defend yourself. One reason entrepreneurs are so vulnerable is because…
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Has it ever occurred to you that you don’t actually own your network of Dunkin’ Donuts restaurants? Well, let me clarify that proposition…while you most likely own the assets, such as the coffee pots, menu boards, and Radiant systems, you do not have the unfettered ability to sell your business. Even if you and your…
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Editor’s note: This month, Independent Joe offers an updated look at the legal impact from California’s Franchsie Relations Act, which has been covered extensively in this magazine. Franchise attorney Peter Lagarias provides this review of the statutory changes and how they affect Dunkin’ Donuts franchise owners. The landmark California Franchise Relations Act (CFRA), which went…
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In its recent ruling on the case involving the metals manufacturer Minteq International, Inc., the National Labor Relations Board (NLRB) continued its expansion of employee rights by finding that two common provisions in a non-compete agreement were “unlawfully overbroad rules” that interfered with employees’ rights in violation of Section 8(a)(1) of the National Labor Relations…
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It is fairly common for franchisees and franchisors to be sued together for an injury that occurred at a franchised location. Likewise, more recent lawsuits have extended to employment-related claims alleging that the franchisor and franchisee are “joint employers” and, therefore, jointly liable for any alleged misconduct of employees at the franchised location. In the…
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