Business Opportunities-Utah A new law in Utah increases the dollar threshold at which assisted marketing plans become subject to the state’s Business Opportunity Disclosure Act. The threshold amount has been raised from $300 to $500. House Bill No. 78 became effective May 8, 2012. Motor Vehicles-Utah Senate Bill No. 68 amends Utah’s motor vehicle dealer law to prohibit a franchisor from: 1) coercing or requiring a franchisee to establish prices at which the franchisee is required to sell certain products or services; 2) coercing or requiring a franchisee to construct a new dealer facility or materially alter or remodel an… Read more
Newsletters
Recent Cases — Fall/Winter 2011
Recovering Lost Profits for Franchisee’s Abandonment The U.S. District Court for the Eastern District of Missouri has recently ruled that, under Missouri law, a restaurant franchisor may recover lost profits resulting from a franchisee’s abandonment of its restaurant prior to the expiration of the franchise term. Although the court did not rule on whether the franchisor would in fact have realized future profits in this particular case, the court did hold that a factfinder could have reasonably determined that, absent the early closure by the franchisee, some revenue would have been realized from the continued operation of the restaurant. In… Read more
Recent Cases — Winter 2012
Timelines of Franchisee Termination The Alabama Supreme Court ruled that a motor vehicle manufacturer could terminate a dealer due to the deteriorating condition and appearance of the dealership’s facility even though the manufacturer was aware of the appearance problems more than 180 days before giving notice of termination to the franchisee. The Court held that, because the problems were both evolving and continuous, the time-notification requirement set forth in the Alabama motor vehicle dealer law was not violated. The Alabama law prohibits automobile manufacturers from premising a termination decision on a breach that is over 180 days stale before notice… Read more
Recent Cases — February 2012
Terminated Franchisee’s Continued Use of Trademark Qualified as Counterfeiting A federal district court in Indiana held that a terminated real estate franchisee who continued to use the trademarks of its former franchisor was liable for trademark infringement, trademark dilution, and most notably, trademark counterfeiting. The franchisee was also found liable for false advertising and false designation of origin under the Lanham Act, unfair competition, and breach of the franchise agreement. Federal judicial circuits are currently split regarding whether a terminated franchisee’s continued unauthorized use of a franchisor’s trademark can constitute counterfeiting. If the Indiana district court’s decision is upheld, it… Read more
Recent Cases — March 2012
Franchisees Deemed “Independent Contractors” A California court held that two janitorial services franchisees were independent contractors, not employees of the franchisor, and thus were not entitled to workers’ wages and job benefits. In California, an employment relationship will be deemed to exist where the person to whom the services are being rendered exercises sufficient control over the management and means of accomplishing the desired result. According to the court, in a franchise context, the burden is on the franchisee to show that the franchisor exercised control beyond what is necessary to protect and maintain its interest in its trademark, trade… Read more
Newsletters
SGR has several different electronic and printed quarterly and weekly newsletters that provide our clients with timely information.
2019 Cost-of-Living Adjustments for Welfare Benefits
The IRS has announced the 2019 cost-of-living adjustments for various welfare benefit plan dollar limits. The 2019 limits are as follows: Limit 2018 2019 Health FSA Contribution Limits Section 125(i) limit on employee contributions to health FSAs $2,650 $2,700 Transportation Fringe Benefits Section 132(f)(2)(A) monthly limit for transportation fringe benefits $260 $265 Section 132(f)(2)(B) monthly limit for qualified parking fringe benefits $260 $265 Adoption Assistance Exclusion/Adoption Credit Section 137(a)(2) exclusion for adoption of a child with special needs $13,840 $14,080 Section 137(b)(1) maximum credit for qualified adoption expenses for other adoptions $13,840 $14,080 Both the exclusion and credit limits will… Read more
Use of a Charitable Remainder Trust in Managing an Art Collection
Quite often an art collection forms a substantial portion of a collector’s assets. Sometimes, a collector is ready to part with a particular work of art or perhaps might be in need of income. A collector might sell the artwork to generate cash. However, if the artwork has substantially appreciated in value in the hands of the collector, this appreciation will generate tax upon the sale. The tax impact can be substantial at 28% capital gain rate or the ordinary income tax rates, depending on how the artwork is classified in the hands of the collector. If You Must Sell, Make the Most of It An alternative to a direct sale is to contribute the artwork… Read more
Environmental and Sustainability News
For more than three decades, SGR attorneys have represented clients on environmental issues. In fact, in 1970, one of our partners was the founding chairman of the Environmental Law Section of the State Bar of Georgia. Since that time, our attorneys have been leaders in the area. Counseling our clients in the cost effective and sensible handling of environmental and sustainability matters is of the utmost importance to SGR attorneys. It is our goal to ensure our clients stay ahead of the curve in all areas of business within this rapidly changing environment. With this in mind, SGR launched this… Read more
EB-5 Regional Center Program Up for Reauthorization
Once again the EB-5 Regional Center, which has been a “pilot program” since its inception in 1992, is up for reauthorization. It currently “sunsets” on September 30, 2015. In a recently published blog post by the American Immigration Lawyers Association, it is noted that from 2008 to 2014 an estimated $12 billion of capital investment came into the U.S. through the EB-5 program, with almost all of it through the regional centers. Since 1990, the EB-5 program has created over 85,000 full-time jobs in the U.S. In FY2013 alone, an estimated 30,000 jobs were created through the EB-5 program. There seems… Read more