Franchise & Distribution Update, Winter 2011


Winter 2011 E-ALERT


Updates for Franchisors:

"If You Don't Know Where You Are Going, You'll End Up Someplace Else" -  Renewal Season is Here Again!

-Quote by Yogi Berra

It’s hard to believe, but for those franchisors with a calendar year fiscal year end, the time has come once again to begin the process of updating the franchise disclosure document and preparing for state registrations. 
Read more. . .

Franchisors May be Subject to Iowa Corporate Income Tax if Franchisees are Located in Iowa

Those in the franchising industry have been awaiting a ruling from the Iowa Supreme Court in KFC Corp. vs. Iowa Department of Revenue, a tax nexus case that could have implications for the entire industry. Read more. . .

Georgia Noncompete Law Revised - But is it Effective?

Those watching the development of the law on noncompetition covenants in Georgia had reason to rejoice at the end of last year, as the Georgia electorate voted to amend the state constitution to allow legislation on the issue. Read more. . .
Red Flags Rule Revised Again

A new bill was signed into law at the end of 2010, providing clarification to the controversial Red Flags Rule. The Red Flag Program Clarification Act of 2010 was adopted on December 18, 2010, in order to clarify the application of the law and eliminate confusion over the types of businesses that are subject to it. Read more. . .

New Brunswick Franchise Legislation to Become Effective February 1, 2011

The provisions of New Brunswick Franchises Act, applicable to franchises to be operated wholly or partially within the Canadian province of New Brunswick, will become effective on February 1, 2011. Read more. . .


Fittante Elected Chair of the ABA Forum on Franchising

Larkin Hoffman proudly congratulates Joe Fittante on his election as the Chair of the American Bar Association Forum on Franchising.  The Forum on Franchising is the preeminent legal organization on franchising, comprised of approximately 2,000 lawyers from around the world.  Joe’s two year term will commence in August 2011.

Visit Us at the IFA Annual Convention for a Chance to Win $50,000 Cash

The IFA Annual Convention is quickly approaching. This event will be held on February 13-16 at the MGM Grand Hotel in Las Vegas.  Make sure to stop by Larkin Hoffman’s booth for a chance to win a $50,000 cash prize!  For more information, visit the IFA website at

Find Us on Facebook

Larkin Hoffman’s Franchise and Distribution Practice Group is now on Facebook! Become a fan of our page to receive real-time updates on current events in the franchising world and related to our practice group.  

Modell, Klaus and Bauer Published in the LJN’s Franchising Business & Law Alert

Check out the most recent issue of LJN’s Franchising Business & Law Alert for two articles by Larkin Hoffman attorneys.  Chuck Modell published an article entitled “Arbitrate?  Litigate?  Avoid Both Through Mediation,” providing an in-depth analysis of medication in the franchise context.  Meredith Bauer and Cyndi Klaus published December’s “Court Watch” article, examining a recent case in Michigan in which a claim was brought against a franchisor that failed to enforce territory restrictions as between its franchisees.  This article also looks at a recent development in the McDonald’s obesity litigation.



Contact our Larkin Hoffman Franchise and Distribution group members 

Email 952-896-3341

Email 952-896-3256

Email 952-896-1578

Email 952-896-1572
Cynthia M. Klaus
Email 952-896-3392
Pamela N. Merkle
Email 952-896-3337
Meredith A. Bauer
Email 952-896-3263
 Jon S. Swierzewski
Email 952-896-3280
Andrew F. Perrin
Email 952-896-3394

Email 952-896-3235

Upcoming Events:

Save the Date: On April 21, 2011, Chuck Modell and Joe Fittante will be presenting a seminar in the Minneapolis, Minnesota area for businesses and entrepreneurs that are considering franchising their business.  The seminar will give an overview of franchising and the legal framework surrounding it.  It will also explore the advantages and disadvantages of franchising, what types of businesses are most successful as franchises, and how potential franchisors can prepare to franchise their business.  In addition, the seminar will touch on how to avoid application of the franchise laws in certain business relationships.  Finally, Joe and Chuck will present an in-depth analysis of how to structure a successful franchise system, what types of agreements and other documents will be needed, and other legal and business considerations that might apply.


Our Practice:


For more information about Larkin Hoffman’s Franchise and Distribution practice group, visit our homepage by clicking here.