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This is an advertisement.
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In this Issue:
Click here for a printable version of this newsletter
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Fighting Fire with Fire: Federal Court Orders Cancellation ofFirehouse Subs’ Trademark after Jury Finds Fraud on the PTO
The Federal District Court for the District of South Carolina recently upheld a jury verdict against Firehouse Restaurant Group, Inc. (FRG), the owner of the “Firehouse Subs” sandwich chain, creating potentially significant challenges for the franchise system and providing a cautionary tale to franchisors and other federal trademark applicants.
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Hardee’s Successfully Defends Market Contraction Claims After Franchisee Blames “Lewd” Advertisements
The advertising by the super-competitive QSR burger–themed chains clamors for viewer attention. When it plays to the young male demographic exclusively, at the risk of offending female patrons and viewers, does it justify abandoning the franchise? Specifically, would hamburger advertisements entitled “Patty Melts for You” and “Flat Buns,” depicting scantily clad women, play in Peoria beyond the 18-49 male audience?
Are Shuttle Drivers Franchisees or Employees? Ninth Circuit Wants Lower Court to Decide
Air travelers are familiar with the ubiquitous blue vans bearing the SuperShuttle logo that whisk travelers to the local destinations of their choice. Since 2001, the drivers of those vans have been franchisees under unit franchise agreements. The parent entity leases the vans to the driver-franchisees, who operate the vans themselves or through their employees. Previously, this service was operated by employees of the parent entity, SuperShuttle International, Inc. (SSI) or a subsidiary. Under California licensing regulation, a subsidiary of SSI holds the passenger stage corporation certificates from the Public Utilities Commission (PUC) necessary to operate the vans on a for-hire basis.
Officer of Franchisor Held Liable as an “Employer” Under the Employee Polygraph Protection Act
What happens when circumstances mix franchising and the family business? Odd results that expand the notion of when a franchisor or its officer is an employer under federal employment statutes. In a case of first impression interpreting the Employee Polygraph Protection Act (EPPA) in the context of a franchisor/franchisee relationship, the District Court for the Northern District of Illinois granted the employee-plaintiff’s motion for partial summary judgment, holding that the president of a restaurant franchisor could be held liable as an “employer” under the EPPA for his actions during a sexual harassment investigation meeting at which he indirectly solicited a franchisee employee to take a polygraph test.
The New Tag Team – Antitrust and FCPA
Is your company seeking new markets outside the U.S. and North America, or engaging more actively in industry trade associations, conferences and events? The attraction of foreign markets and enhanced industry participation carries a cautionary element: the need to develop and implement more sophisticated compliance apparatus. Compliance professionals now mention their concern with the Foreign Corrupt Practices Act (FCPA) in the same breath as compliance with antitrust/competition laws.
Navigating Overseas Compliance Issues
With "compliance" being the buzzword for corporate executives and legal counsel, there is renewed focus on reducing legal risks when exporting or selling overseas. The key is a robust compliance program that outlines the company’s policy as well as internal procedures to implement the policy and a solid set of documents to evidence the compliance activities. Click here to read Baker Donelson attorney Doreen Edelman’s "Compliance Program ‘Must- Haves’ for Doing Business Abroad," on the Corporate Compliance Insights website.
Baker Donelson Marks Entry into Texas and Florida
Baker Donelson has expanded its footprint significantly in the last two months, entering two new states through mergers with firms in Houston, Texas, and Orlando, Florida. Each acquisition – Spain Chambers in Houston and Orlando's Litchford & Christopher – added six attorneys to Baker Donelson.
Winter Franchise Business Network Meeting Set for January 10, 2012
Mark your calendars now for the Winter 2012 meeting of the International Franchise Association’s Franchise Business Network on January 12. January's topics will include "Northern Exposure: Franchising in Canada" and a presentation on "Managing System Change" from Smoothie King's general counsel. These quarterly lunch meetings are hosted by Baker Donelson in offices across Tennessee, Alabama, Mississippi and Louisiana.
Joel Buckberg Named to Who's Who
Joel R. Buckberg, head of Baker Donelson's franchise and hospitality practice groups, has been named to the International Who's Who of Franchise Lawyers 2011. He is one of only 323 attorneys worldwide included in the 2011 list, which recognizes the world's leading franchise lawyers based on feedback from clients and peer attorneys.
Divine Testifies Before Senate Judiciary Committee
Baker Donelson shareholder Robert Divine, a nationally-recognized immigration attorney, testified before the Senate Judiciary Committee on December 7 regarding the job-creating effects of the EB-5 immigrant investor program and the importance of renewing the regional center authorizing legislation. A copy of Mr. Divine's testimony is available here.
CIRCULAR 230 NOTICE
To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.
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Receipt of this communication does not signify and will not establish an attorney-client relationship between you and Baker Donelson unless and until a shareholder in Baker Donelson expressly and explicitly agrees IN WRITING that the Firm will undertake an attorney-client relationship with you. In addition, electronic communication from you does not establish an attorney client relationship with the Firm.
The Rules of Professional Conduct of various states where our offices are located require the following language: THIS IS AN ADVERTISEMENT. Ben Adams, CEO and Chairman of the Firm, maintains an office at 165 Madison Avenue, Suite 2000, Memphis Tennessee 38103, 901.526.2000. No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers. FREE BACKGROUND INFORMATION AVAILABLE UPON REQUEST. ©2011 Baker, Donelson, Bearman, Caldwell & Berkowitz, PC. |
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