Recent Cases — Issue 7
Franchisor Not Liable for Franchisees’ “Robo-Calls” A federal district court in Washington held that Domino’s Pizza, Inc. could not be held liable for its franchisees’ violations of Washington’s prohibition against automatic dialing and announcing devices. The relevant provisions of the Washington Automatic Dialing and Answering Devices Act (“WADAD”) prohibit the use of an automatic dialing and announcing device (“ADAD”) for purposes of “commercial solicitation,” defined as the “unsolicited initiation of a telephone conversation” for the purpose of encouraging sales. The plaintiffs contended that (i) because Domino’s introduced its franchisees to an automated calling service, (ii) because the Domino’s software platform… Read more
Issue 7 — New Laws and Regulations
Workers’ Comp – Georgia House Bill No. 548, approved on May 1, 2012, makes Georgia the first state to adopt legislation that prohibits a franchisee from being considered an employee of its franchisor. This new law protects franchisors from liability for workers’ compensation claims made by their franchisees, but it is unclear whether the law would extend to other claims, such as tort liability. The law goes into effect July 1, 2012. The full text of the bill can be found here. New Disclosure Requirements – Manitoba The Canadian province of Manitoba recently passed The Franchises Act, requiring certain disclosure… Read more
Legislative/Policy Updates
Massachusetts Law Tabled; Vermont Vote Upcoming Massachusetts has tabled a law similar to California’s proposed “Level Playing Field of Small Businesses Act,” discussed in the previous issue of our Franchise Law Newsletter. Senate Bill No. 1843 would allow a franchisor to be held liable for damages if it developed a new location that adversely impacted an existing franchisee. The bill was tabled for study by the Committee on Senate Ethics and Rules. In Vermont, a similar bill is expected to be voted upon within the coming year. House Bill No. 694 would prohibit franchisors from placing a new franchise outlet… Read more