Franchise & Distribution Law

The Revenue Recognition Roller Coaster: Get Ready for the Ride

Lots of unexpected twists and turns await franchisors in this new ruling that is far from straightforward.

RollercoasterYou might think that you know all about the Financial Accounting Standards Board’s new Revenue Recognition Standard that will take effect in 2018 for public companies, and 2019 for private companies. Continue reading

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Franchise & Distribution Law

Watch Your Step in Crossing the US Border

us and canada flagsAccording to the Government of Canada, “Canada and the United States enjoy the longest, deepest, most peaceful, and mutually beneficial relationship between any two countries in the world. No two nations depend more on each other for their mutual prosperity and security than the US and Canada.”[1] In 2016, bi-lateral trade between Canada and the U.S. exceeded CAD$841 billion. Continue reading

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Franchise & Distribution Law

Change to Michigan Law Provides Some Protection for Franchisors

NLRBJoint Employer Liability

One of the recent concerns for both franchisors and franchisees in the US has been the uncertainty created by regulatory efforts to have franchisors held liable as a “joint employer” of the employees of their franchisees. Most prominent of these efforts has been the National Labor Relations Board’s (“NLRB”) actions asserting that McDonald’s is a joint employer of its franchisees’ employees. Continue reading

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Franchise & Distribution Law

NLRB’s ‘Joint Employer’ Decision Could Lead to Headaches for Franchisors

NLRBFranchisee employees may be considered “joint employees” of the franchisor for purposes of collective bargaining and other employment issues under the National Labor Relations Board’s recent decision in Browning Ferris Industries of California, Inc. (BFI), a decision that could expose franchisors to labor law liability for conducting common franchisor activities.
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Franchise & Distribution Law

Take Action Now to Avoid Unexpected State Tax Liabilities

tax-Traditionally, nexus for state income tax liability has required some type of physical presence or continuous contacts by the franchisor/distributor with a particular state. With the advent of taxing authorities asserting that all that is needed is “economic nexus,” franchisors are now increasingly exposed to income tax liability based upon royalty revenue they receive regardless of its bricks and mortar in the state. Continue reading

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Franchise & Distribution Law

Nutrition Information Coming to Both US and Canadian Menus

NutritionThe U.S. Food and Drug Administration (FDA) recently finalized two rules requiring calorie information on menus and menu boards in restaurants and retail food establishments that are part of a chain of 20 or more locations, doing business under the same name, and offering substantially the same menu items. Continue reading

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