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Exemptions and Exclusions Under Federal and State Franchise Laws
Sawan Patel co-authored the Minnesota chapter in the American Bar Association’s book on franchise registration and disclosure exemptions, “Exemptions and Exclusions Under Federal and State Franchise Laws,” published in 2017.
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Do Your Commercial Real Estate Taxes Seem Too High?
Minnesota's deadline to file an appeal for taxes payable in 2017 is April 30, 2017, which means it's time for commercial property owners, tenants, managers, etc., to decide if a tax appeal is appropriate. Here are a few frequently asked questions.
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Individuals, Businesses Must be Justly Compensated When Property is Taken for Public Projects
When the government takes private property for a public project, both the United States and the Minnesota Constitutions require that just compensation be paid for the taking.
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SBA Announces Valentine’s Day Changes to SBA Loan Program for Franchises
Yesterday afternoon, the U.S. Small Business Administration (SBA) announced temporary changes to the recently revised franchise review process for its 7(a) and 504 loan programs. The changes are intended to facilitate SBA loans for franchisees of franchise systems who have previously been on the SBA’s Franchise Registry or otherwise negotiated an SBA Addendum to their franchise agreements.
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Judge Limits Minneapolis Sick and Safe Time Ordinance
The Minneapolis sick and safe time ordinance will only apply to Minneapolis businesses – for now.
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2017 Checklist for Franchisors: Updating Your FDD
Chuck Modell's article, "2017 Checklist for Franchisors: Updating Your FDD" was published by the International Franchise Association on Jan. 29, 2017.
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Franchisees Are Not Off the Hook Just Because They Invoke Cancellation Language in the Franchise Agreement
A federal district court in Florida made exceedingly clear in an October 2016 decision that even if a franchise agreement is cancelled and rescinded, its non-disclosure and non-competition obligations can still tie the franchisee’s hands. In other words, franchisors may enforce these obligations even when the franchisee never opens the franchise.
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The Risk of Failing to Consider Disclosure Obligations in Confidential Settlements
Franchisors who enter into settlement agreements requiring that they keep their terms confidential put themselves in jeopardy if they fail to first consider their disclosure obligations.
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Is Your Website ADA Compliant?
As evidenced by recent court decisions and regulatory actions there is a trending interpretation of the Americans with Disabilities Act (ADA) that a website is a “place of public accommodation.”
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Get it in Writing, so a Deal Doesn’t end in Buyer Beware
Chuck Modell contributed the article, "Get it in Writing, so a Deal Doesn’t end in Buyer Beware" to the Dec. 2016/Jan. 2017 edition of Upsize Magazine.
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Additional Avenues Beyond Litigation for Defending Against Allegations of Patent Infringement
Todd Fronek co-wrote the article "Additional Avenues Beyond Litigation for Defending Against Allegations of Patent Infringement," which appeared in DRI's IP Update.
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Judge Blocks New Overtime Rule
On Tuesday of this week, a federal judge sitting in Texas issued a preliminary injunction blocking the Department of Labor’s (DOL) regulation, scheduled to take effect on Dec. 1, 2016, that would have doubled the minimum salary necessary for exempt status under the “white collar” exemptions to $47,476.
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Minneapolis City Council Passes Amendments to Sick and Safe Time Ordinance
On Sept. 23, the Minneapolis City Council unanimously voted to enact several amendments to its Sick and Safe Time Ordinance, which was originally passed on May 27. These amendments come after the city of St. Paul enacted its own Sick and Safe Time Ordinance on Sept. 7.
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Conditional Use Permit Denial, Later Explained, Was Timely
Minnesota’s 60-day rule, which requires that “a written request relating to zoning” must be denied within 60 days or it is automatically approved, continues to spawn court decisions explaining how it works. Among other questions addressed by the courts is what constitutes a “denial.” The 60-day rule addresses one scenario, providing that when a vote on a resolution … to approve a request fails for any reason, the failure shall constitute a denial of the request provided that those voting against the motion state on the record the reasons why they oppose the request.”
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Does a Comparable Sale Represent Investment Value or Market Value?
Twin Cities commercial real estate has been experiencing substantial investment by real estate investment trusts (REITs), insurance companies, and other national investors. There can be many reasons for this: good market fundamentals, low unemployment, high quality of life, number of bike lanes, the list goes on and on. However, many of these investors are paying near-record and record-high prices for assets in the Twin Cities.
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Fair Pay and Safe Workplaces Rules Take Effect Beginning Oct. 25
Contractors who bid on federal contracts, or subcontract for businesses that do should be aware of new disclosure requirements that will be implemented this fall President Obama’s Fair Pay and Safe Workplaces executive order will significantly impact how contractors do business and bid on federal contracts.
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Show the Numbers to Sell More Units
Chuck Modell's article, "Show the Numbers to Sell More Units" was published in the Sept. 2016 edition of Franchise Times.
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Aggressive Defense in a Franchise Dispute may Create Opportunities for Favorable Settlement for Franchisors
A common franchisee tactic in litigation with franchisors is to assert all conceivable claims under a multitude of franchise and dealership statutes, even where it is appears that the statutes have no application to the franchise relationship. Franchisees plead these “kitchen sink” claims for a number of reasons. For one thing, a franchisor presented with a complaint containing a large number of claims may feel a heightened sense of urgency to settle. Additionally, a particular state franchise statute may allow the franchisee to claim entitlement to punitive damages and/or recoupment of attorneys’ fees. Even if the franchisee’s entitlement to such special damages is infinitesimally small, the franchisee still hopes the mere threat of such recovery will increase the likelihood of a colossal settlement.
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Australia Extends Unfair Contract Terms Law to Small Businesses (Read Franchises)
On Nov 12, 2016, amendments to Australian law will take effect rendering various franchise agreement provisions void. Examples include limitations on franchisor obligations, penalties for franchisee breaches or termination, and provisions permitting franchisors to modify their operations manual during the term of the franchise. Franchisors in Australia need to reexamine their franchise agreements to make sure they will comply with law.
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Court Holds Franchisee Accountable for Acts That Harmed the Goodwill and Reputation of the Franchise System
The U.S. District Court for the District of Arizona recently issued a decision supporting franchisors’ right to protect their legitimate business interests from franchisees who perform “overnight switches” to competing businesses. The court specifically held that enforcement of non-compete agreements are “necessary to protect [franchisors’] legitimate business interests, including [their] confidential information, trade secrets, and good will,” reasoning that “[t]he goodwill that [a franchisee] acquired from performing work as a . . . franchise belongs to the franchisor.”
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