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Sick and Safe Time Ordinances Cause Concern in the Franchise Community

 
By Susan Tegt

State and local governments around the country are passing legislation that continues to attack the franchise business model. Seattle’s enactment of a minimum wage law categorizing franchises as “large” businesses rather than “small” business is a much publicized example. Now municipalities are jumping on the trend of enacting legislation requiring employers to offer paid sick leave to employees. These laws are likely to impose financial hardships on small business owners who will need to provide paid leave benefits to employees. Like Seattle’s minimum wage law, the classification of franchises as joint enterprises or as large employers under paid sick leave laws will have significant effects on both franchisees and franchisors.

Eighth Circuit Holds That Franchisor Failed to Establish Willful Infringement
 

Franchisors must demonstrate at least minimal willful infringement when seeking to recover monetary damages under the Lanham Act, even when the defendants fail to defend the claim.

In Martinizing Int’l, LLC v. BC Cleaners, LLC, No. 16-1069, 2017 WL 1521508 (8th Cir. Apr. 28, 2017), the Eighth Circuit reversed a district court’s award of damages by default judgment to a franchisor under the Lanham Act and the Minnesota Deceptive Trade Practices Act (MDTPA). This outcome will likely surprise franchisors given the facts of the case.


News & Press

Franchise Times has named Charles ModellJoe FittanteAndrew Perrin and Jim Susag as Legal Eagles again this year, a designation awarded to the top franchise lawyers in the United States and Canada.

Several members of Larkin Hoffman’s Franchise and Distribution Team will be attending the International Franchise Association Legal Symposium on May 8-9, 2017. Henry Pfutzenreuter will be co-presenting a session titled, “You’ve Settled Your Action or Arbitration, Now What? Best Practices for Ensuring Strong Settlements and Enforceable Releases.” Susan Tegt will be hosting a roundtable discussion titled, “Arbitration v. Litigation: Are There New Pros and Cons?” Jim Susag, Andrew Perrin and Joe Fittante will also be attending the Symposium.  

Sawan Patel co-authored the Minnesota chapter in the American Bar Association’s book on franchise registration and disclosure exemptions. The chapter, “Exemptions and Exclusions Under Federal and State Franchise Laws,” was published in March 2017
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In the Community

19th Annual SUBWAY® Bedrace for Bridging
On March 4, 2017, Larkin Hoffman employees and their family members participated in Bridging Inc.’s 19th Annual Subway® Bedrace for Bridging event held Saturday, March 4 at Buck Hill in Burnsville, Minn. Members of the firm’s team raised $500 for the organization. Hundreds individuals and 110 teams participated in this year’s event, which raised more than $80,000. The proceeds benefited Bridging Inc., a nonprofit organization located in Bloomington, Minn. that donates furniture and household items to needy families. Bridging is the largest furniture bank in North America.


Spring 2017 Issue


Our Professionals

 

Charles Modell, CFE

952-896-3341

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Joseph Fittante, Jr.

952-896-3256

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Mark Robertson

952-896-3264

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James Susag

952-896-1572

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Andrew Perrin, CFE

952-896-3394

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William Thornton

952-896-1578

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Susan_Tegt_2016

Susan Tegt

952-896-6713

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SawanPatel

Sawan Patel

952-896-3242

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Inga Schuchard

952-896-1534

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Bryan Huntington, editor

952-896-3370

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Henry Pfutzenreuter, editor

952-896-3325

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Jill Henson

952-896-3296

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Jan Jahn

952-896-3385

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Larkin Hoffman provides counsel to a wide variety of ‎organizations, from ‎small businesses and nonprofits to  Fortune 500 companies, in ‎many areas of practice including ‎corporate and governance matters, litigation, real ‎estate, government relations, labor and employment, intellectual property, ‎information technology, ‎franchising and taxation. The firm also serves the needs of individuals in many ‎areas ‎including trusts and estates, personal injury and family law.

 

This newsletter is provided as a service to our clients and firm associates. While the information provided in this newsletter is believed to be accurate, it is general in nature and should not be construed as legal advice.