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Legislation and Regulation

Legislative issues and government regulations can put the franchise business model at risk. Learn what multi-unit franchisees, franchise organizations, and the IFA are doing to take action to ensure franchise industry success. Learn how to get involved in educating your local, state, and federal elected officials about the benefits of franchising.

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NLRB proposes return to expanded joint employer standard, threatening franchising
  • Jim Paretti, Michael J. Lotito, and Maury Baskin
  • 3,052 Reads 8 Shares
Joint-employer standard will be expanded in latest NLRB proposal 
  • Joel R. White
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California’s FAST Recovery Act (AB 257) is a clear and present danger to franchising
  • Therese Thilgen
  • 8,441 Reads 88 Shares
With David Weil defeated, the IFA urges franchisees to get involved in protecting the FTC Franchise Rule and to attend the FAN meeting in D.C. this September
  • Matt Haller
  • 4,898 Reads 6 Shares
The IFA’s Open for Opportunity campaign seeks to protect the franchise business model in 2022
  • Matt Haller
  • 1,091 Reads 19 Shares
The IFA’s Open for Opportunity campaign seeks to protect the franchise business model in 2022
  • Matt Haller
  • 1,397 Reads 14 Shares
The IFA’s Open for Opportunity campaign seeks to protect the franchise business model in 2022
  • Matt Haller
  • 2,559 Reads 16 Shares
After a year and a half of Covid, savvy franchisors are updating their FDDs to reflect changes caused by the pandemic
  • Lynne Hanson
  • 3,389 Reads 13 Shares
What happened at November’s FTC Rule workshop, and what changes might be in store for FDDs and FPRs?
  • Joyce Mazero and Jan Gilbert
  • 4,895 Reads 15 Shares
DOL issues final joint employer rule, reverting back to pre-Obama definitions.
  • Franchise Update
  • 2,904 Reads 11 Shares
California's AB5 law, coming your way January 1, represents a serious threat to the franchise model.
  • Jonathan Solish
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California courts may change the joint employer picture - for the worse
  • Eddy Goldberg
  • 4,334 Reads 38 Shares
NLRB Announces in Letter to Senators it Plans to Advance a Joint Employer Rulemaking.
  • Multi-Unit Franchisee
  • 3,875 Reads 5 Shares
The FDA's Menu Labeling Rule Takes Effect This Week. Here are 5 Common Questions Related to the New Law
  • William Sentell
  • 10,700 Reads 8 Shares
New bill would impact franchisees by weakening equity in their businesses, damaging brands, reducing product quality, and limiting franchisor assistance.
  • Multi-Unit Franchisee
  • 10,436 Reads 24 Shares
IFA says new California bill would create untested new statutory language leading to costly litigation and hindering future franchise development.
  • Multi-Unit Franchisee
  • 6,781 Reads 1,014 Shares
On many levels, 2014 was a tumultuous year for the franchise business model.
  • Darrell Johnson
  • 8,694 Reads 1,014 Shares
The Affordable Care Act has introduced widespread changes to the healthcare landscape. It has increased the availability, quality, and affordability of health insurance for the general population, regardless of age, gender, or pre-existing medical conditions.
  • Benjamin Geyerhahn
  • 13,647 Reads 1 Shares
A lawyer or doctor who acts negligently can be sued for malpractice. Many franchisees rely on the franchisor's purported expertise in running their business.
  • Glenn Plattner and Shelly Gopaul
  • 4,520 Reads
U.S. franchisor interest in Asia seems to be at an all-time high, yet from a legal compliance standpoint it has never been more difficult to enter into many of the various Asian markets.
  • Robert A. Lauer
  • 8,025 Reads 966 Shares
I begin this column by stating where I am going with this piece. I am going to put franchise sales legislation and regulation under the microscope, and ask the penetrating question of whether it is, or is not, necessary. (Similar questions should be asked about franchise relationship legislation, but I will leave that for a future column.)
  • Rupert M. Barkoff
  • 3,302 Reads 17 Shares
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Financing is the lifeblood of expansion for franchisors and multiunit owners alike. Whether for advertising and marketing to sell additional franchises, or whether to remodel or build more company stores, without financing there is no growth and development. And, despite the rapid growth of new concepts and new units in the aftermath of the dot.com crash in 2000 and 2001, many forecasts of the economic climate and its effect on business growth in 2008 range from gloomy to dim--especially when it comes to credit and lending.
  • Eddy Goldberg
  • 2,655 Reads 1,014 Shares
The franchise industry is having an increasingly large impact on the Canadian economy, with franchised businesses accounting for 40 percent of all retail sales. Provincial legislators are taking note of this growing industry and, in response, are introducing and passing legislation that addresses many of the perceived issues that arise between franchisors and franchisees. Most recently, the Province of New Brunswick passed franchise legislation (the “New Brunswick Act”), making it the fourth Canadian province to adopt such legislation, after Alberta, Ontario, and Prince Edward Island.
  • Jayne Westlake
  • 4,248 Reads 1 Shares
On January 31, 2007, the State Council of the People's Republic of China adopted the "Regulations on the Administration of Commercial Franchise," scheduled to take effect on May 1, 2007 ("2007 Franchise Regulations"). With promulgation of the 2007 Franchise Regulations, China entered the last phase of a long and difficult process that started in 1997 to create a legal structure for the franchise business model in China.
  • Richard Wageman
  • 11,660 Reads 628 Shares
During the last few years, franchising has experienced an impressive growth in Spain, from 634 franchise systems in 2002 to almost 900 in January 2006, with over 54,000 franchised outlets now open. Accordingly, having access to accurate and relevant information regarding franchisors is very important for a growing number of prospective franchisees, consumers and future franchisors.
  • Laura Montoya Teran
  • 6,111 Reads 290 Shares
Last year, while many Canadians and Americans alike were considering a summer vacation to experience all that Canada's Atlantic Coast has to offer, legislators in Prince Edward Island and New Brunswick, two of Canada's maritime provinces, were setting their minds to franchising.
  • Lawrence Weinberg and Jayne Westlake
  • 4,809 Reads 5 Shares
On January 25, 2006, an amendment ("Amendment") to the Mexican Industrial Property Law ("IPL") was published in the Federal Official Gazette. The Amendment was published after a long discussion initiated by Congress in early 2005, and became effective on January 26, 2006. The Amendment's final provisions were the result of a very effective lobbying campaign by major players in the franchising sector and, fortunately for the industry, Congress eliminated many of the overly restrictive aspects of the initial bill that could have unnecessarily hampered the industry. In the end, Congress' objective of providing more protection to franchisees was well balanced with the legitimate rights of franchisors. For example, certain ultra-protectionist provisions for franchisees originally contained in the bill, such as certain rights of first refusal in franchisees' favor and the right to request cancellation of registration of franchisor's trademarks in certain cases, were not incorporated into the Amendment.
  • Alberto de la Peña
  • 3,077 Reads
The Mexican Congress is reviewing a bill ("Bill") intended to amend the Mexican Industrial Property Law ("IPL") to regulate franchise agreements and to add new disclosure procedures. It is still uncertain whether the Congress will approve the Bill. Currently, the IPL franchise regulations are very limited, and do not regulate the content of franchise agreements. The Bill adopts a very different approach in order to protect franchisees from perceived franchisor abuses.
  • Alberto de la Peña
  • 2,736 Reads 6 Shares
If adopted, the recently published Unfair Contract Terms Bill ("UCTB") will significantly change the way franchise agreements are viewed by English courts and could create headaches for franchisors with franchises in the United Kingdom ("UK"). The UCTB was published by the Law Commission in draft form earlier this year. The bill will not become effective unless it is formally adopted, but the draft reflects the views of the current government so it is likely that the bill will be adopted sometime in 2006.
  • Ryan Whitfill
  • 3,205 Reads 99 Shares
The IMPI is an agency of the Federal government created in 1993 which has its own assets, personality and budget. IMPI has over a 1,000 employees in Mexico, most of them are concentrated in our headquarters in Mexico City, but we also have regional offices in Guadalajara, Mérida, Monterrey and León. In terms of our human resources, around 63% of our employees have a bachelor degree, 25% have technical education, and 2% masters or PHD degrees which allows us to provide high-quality services to users.
  • Alberto de la Peña
  • 4,583 Reads 16 Shares
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