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Franchising Client Alert

By Franchising

Sale of Skrimp Shack® Franchise System

We are pleased to congratulate our client, Mitch and Stacey Hartman, on recently selling their Skrimp Shack franchise system. Kaufman and Canoles (J. Britton Williston, Nicole J. Harrell, Stephen E. Story and Jonathan M. Lazarow) represented them in all aspects of the transaction.

DOL Issues Final Rule Clarifying Joint-Employer Relationships

On January 12, 2020, the U.S. Department of Labor announced a final rule to revise and update its regulations interpreting joint employer status under the Fair Labor Standards Act (FLSA). The final rule provides updated guidance for determining joint-employer status when an employee performs work for an employer that simultaneously benefits another individual or entity. The effective date of the final rule is March 16, 2020. The final rule was published in the Federal Register on January 16, 2020 (85 Federal Register 2820). The new rule should help franchisors avoid being characterized as joint employers, with their franchisees, of the franchisee’s employees.

The Department adopted a four-factor balancing test to assess whether the franchisor: (1) hires or fires the employee; (2) supervises and controls the employee’s work schedule or conditions of employment to a substantial degree; (3) determines the employee’s rate and method of payment; and (4) maintains the employee’s employment records. If you want to discuss including these factors in your Franchise Agreement to track the test under the new rule, please contact us.

Franchise Business Network

Kaufman & Canoles will hold a fourth meeting of the International Franchise Association’s Franchise Business Network (FBN), in Richmond, Virginia on March 12, 2020 from 4:30 to 6:30 pm at Stone Brewing Taproom at 4300 Williamsburg Ave. The FBN is a place for franchise professionals to network with others in the franchise community, meet potential customers, and make new business contacts. Each gathering includes an opportunity to learn about important developments in franchising. Please contact Christina DiPinto at cedipinto@kaufcan.com to RSVP.

The Best Lawyers in America® 2020

Stephen E. Story was recognized in Best Lawyers in America 2020 for Franchise Law. In addition, Kristan B. Burch was recognized in Best Lawyers in America 2020 in Construction Law, and Stephen E. Noona was recognized in Best Lawyers in America 2020 in Litigation and named the Best Lawyers 2020 “Antitrust Lawyer of the Year” for Norfolk, VA.

Franchising Your Business Webinar

Kaufman & Canoles presented a Franchising Your Business Webinar on June 19, 2019. The webinar provided information for prospective franchisors interested in learning more about franchising their existing business. To view the recorded webinar, click here.

Thinking of Franchising Your Business? Visit our website here or contact Stephen E. Story at (757) 624.3257 or sestory@kaufcan.com or Nicole J. Harrell at (757) 624.3306 or njharrell@kaufcan.com.


The contents of this publication are intended for general information only and should not be construed as legal advice or a legal opinion on specific facts and circumstances. Copyright 2020.