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Chicago Franchising Law Blog

Illinois Businesses - Be Aware of the New Illinois Freedom to Work Act

The Illinois Freedom to Work Act went into effect on January 1, 2017 (820 ILCS 90). The Act is said to have been passed in response to Jimmy John's requiring employees to sign non-compete agreements that restricted the employees from being employed at businesses located with 2 or 3 miles of Jimmy John's locations if the business obtained more than 10% of their revenue from the sale of menu items similar to the Jimmy John's menu items.

What are the Registration and Disclosure Requirements in Franchise Transfers?

Franchisors should not mistakenly assume that a sale of an existing franchise business by the franchise owner is not subject to the registration and disclosure requirements of the franchise laws. When a franchisee is selling its franchise business, is the franchisor obligated to provide the prospective buyer with its current Franchise Disclosure Document? If the franchise business is in a franchise registration state, does the franchisor have to be registered to offer and sell franchises in that state for the franchisee sale/transfer to take place?

FDA's Menu Labeling Rule Delayed

The U.S. Food and Drug Administration's Menu Labeling Rule, which was set to go into effect on May 5, 2017, has been delayed. The Menu Labeling Rule called for businesses in the food service industry (e.g. restaurants, grocery and convenience stores) with 20 or more locations to post calorie counts on their menu boards. This would apply to most food service franchise systems. The Rule is now set to go into effect on May 7, 2018.

FRANCHISORS: IT IS THAT TIME OF YEAR AGAIN - THE FDD UPDATE.

If your franchise company has a fiscal year end of December 31, early January is the time to begin the process of updating the Franchise Disclosure Document as required by the Federal Trade Commission's FTC Rule. The FTC Rule requires that all franchisors update their FDDs within 120 days of their fiscal year end. So what does that mean and what should franchisors be doing?

Happy Holidays from Carter & Tani

As we come to the close of Carter & Tani's 25th anniversary year, we look back and are grateful for our clients and business associates who have enabled us to reach this milestone. We also look forward to the future, with the addition of our new associate, Alissa Carter Verson, who joined us this May after passing the Illinois bar exam, and as we examine ways to continue to improve our services to our valued clients.

The Defend Trade Secrets Act of 2016: Good News for Franchisors and other Companies with Trade Secrets

In May of this year, President Obama signed into law the Defend Trade Secrets Act of 2016 ("DTSA"), which creates a federal cause of action for trade secret misappropriation. Before the passage of this Act, the only cause of action for trade secret misappropriation was in state court. Most states have adopted a version of the Uniform Trade Secrets Act ("UTSA"), which provides a state cause of action for trade secret theft.