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October 2019's Converge Newsletter
Top Canadian Legal Issues for Brands & Hospitality Companies (Legal Issues You Might Not Know About Canada)
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October 22, 2019 via ConvergeBlog
Similarly to the United States, Canada has pre-sale franchise disclosure laws in six of the 10 provinces in the country, each of which require that a "franchise disclosure document" or "FDD" be provided to a prospective franchisee at least 14 days before a franchise agreement is signed or any consideration is paid in respect of the franchise. Due to the broad application of franchise laws, certain relationships, including licensed or managed hotel arrangements, may be considered "franchises" under Canadian law, even if not so intended as such or characterised under American law. Consequences for failures or errors of disclosure include statutory misrepresentation and rescission, including the right to sue for losses. Canadian franchise laws are historically strictly construed against franchisors, with case law supporting large damage awards against hotel franchisors because of technical errors in disclosure. While the substance of disclosure is relatively similar in both countries, Canadian disclosure obligations include an overriding "materiality" concept which can require a FDD to be modified on a deal-by-deal basis to account for deal-specific facts, including, in some instances, the content of a PIP, as well as an ongoing disclosure obligations in respect of "material changes" between the provision of the FDD and the execution of a franchise agreement. Certain exemptions exist from the obligation to make disclosure, including in Ontario and British Columbia, where the acquisition of the franchise exceeds $5M.
Cassels Brock
HL ConvergeBlog
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State & Federal Alcohol Compliance Update: TTB Enforcement and Related Matters

October 24, 2019 via ConvergeBlog

In recent months, TTB has, thanks to a generous allocation in the federal budget, embarked on a rigorous trade practices investigation of alleged violations of the Federal Alcohol Administration Act (the "Act").
Gray Robinson
Ninth Circuit Court of Appeals Holds Franchisor Not Liable as a Joint Employer of its Franchisee's Employees

October 22, 2019 via Cozen O'Connor

On October 1, 2019, the Ninth Circuit Court of Appeals decided...Salazar v. McDonald's Corp. No. 17- 15673 (9th Cir. 2019), holding franchisor McDonald’s was not a joint employer with its franchisee, because McDonald’s did not retain control of day-to-day aspects of work at the franchisee’s restaurants.
Cozen O'Connor
Las Vegas MGM Hotel & Casino
MGM Resorts Commits up to $800M to Victims of Vegas Shooting
October 4, 2019 via Meetings & Conventions

The out-of-court agreement will resolve lawsuits in at least 10 states seeking compensation from the hotel owner for physical and psychological injuries received in the deadliest mass shooting in modern U.S. history.
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