Franchising & Distribution Law Blog

Reversing course from more than 30 years of precedent, the National Labor Relations Board significantly expanded its standard for determining when two entities constitute a single joint employer over a unit of employees. In so doing, the NLRB creates questions about a number of entity relationships such as parent corporation/subsidiary, contractor/subcontractor and franchisor/franchisee relationships.

Fourth Circuit serves franchisors a double helping of arbitration and litigation

Many franchisors spend considerable time and resources analyzing whether to include a mandatory arbitration provision in their franchise agreements in hopes of warding off franchisees’ class action lawsuits and avoiding costly and drawn-out litigation. Such efforts are now even more complicated, at least in the Fourth Circuit.