Franchise Law

Franchising growth is a leading driver of the U.S. post-pandemic recovery, with the industry accounting for nearly 3% of GDP. The resilience and expansion of franchise enterprises depend on growth that is sustainable and profitable. Buchalter’s deep legal bench supports this growth by managing every legal issue franchisor and franchisee encounter throughout its life, from labor & employment and joint employer liability, to succession plans, to real estate disputes, and more.

Protecting and Promoting Franchise Success

Clients value our in-depth experience and creativity in navigating this notoriously challenging regulatory arena, with particular emphasis on California. Buchalter advises and represents regional, national and international franchise clients across such industries as:

Buchalter is distinctive in this sector for its cross-practice experience related to franchises in the food, finance, medical and petroleum industries. Just like our clients, the business’ bottom-line is never an after-thought but rather the priority underscoring our legal counsel.

More Than Franchise Registration Counsel

Providing full-service counsel to the franchise industry means Buchalter clients gain an economical, one-stop, and centralized resource for the many unexpected issues that arise. Our comprehensive services extend far beyond registering a franchise and include:

While clients appreciate our ability to avoid the disruption of lawsuits and claims, they count on our strength in litigation and dispute resolution for their toughest challenges. Buchalter’s track record of successful representation of franchisors and franchisees in litigation covers the full gamut of issues, including partnership disputes, real estate, and construction conflicts, franchise disclosure and sales, employee and independent contractor discipline and disputes, franchise terminations, trademark disputes, and bankruptcy in state courts, federal courts, arbitrations, and appeals throughout the country.

Representative Matters

• BP West Coast Products LLC v. May et al.: Obtained summary judgment for BP West Coast Products in a dispute related to a challenge to BP’s methodology in offering dealers the right of first refusal to purchase gas stations involving approximately 40 facilities. A copy of the District Court’s opinion can be found here and the 9^th Circuit’s decision affirming the District Court’s opinion can be found here.
• Consumer Advocacy Group v. Exxon, et al.: Obtained summary judgment for Atlantic Richfield Company in Proposition 65 case alleging theory of daily “continuous discharges” from underground storage tanks. A copy of the Superior Court’s opinion can be found here and the Court of Appeal’s decision affirming the Superior Court’s opinion can be found here.
• DirecTV, LLC et al. v. Marlon Hall: Served as counsel on behalf of the American Hotel & Lodging Association, Asian American Hotel Owners Association, Coalition of Franchisee Associations, International Franchise Association and Restaurant Law Center in a matter brought before the United States Supreme Court regarding potential joint employer liability. A copy of their Amicus Curiae brief can be found here.
• Doe v. Massage Envy Franchising, LLC, at al: Successfully asserted an agreement to arbitrate contained in plaintiff’s online scheduling profile was a valid “clickwrap” agreement compelling arbitration. A copy of the Court of Appeal’s decision can be found here.
• Jack in the Box, Inc. v. Mehta: Obtained summary judgment on behalf of Jack in the Box, Inc. on its breach of contract, trademark infringement, and unfair competition claims as well as on Mehtas’ counterclaims against Jack in the Box. A copy of the District Court’s decision can be found here and a copy of the 9^th Circuit’s decision affirming the District Court’s decision can be found here.
• Kim v. Tesoro Refining & Marketing Company LLC: Successfully dismissed quiet title action filed by plaintiff related to the operation of an AM/PM convenience store and an ARCO-branded retail motor fuel facility. A copy of the District Court’s decision can be found here.
• McDonald’s USA, LLC, a joint employer, et al. and Fast Food Workers Committee, et al.: Successfully defended McDonald’s California franchisees involved in a multi-state action—the “largest case ever adjudicated” by the National Labor Relations Board—where a national labor union alleged that McDonald’s franchisees were engaged in a variety of unlawful labor practices and were all joint employers with McDonald’s USA, LLC. A copy of the National Labor Relations Board’s published decision related to the resolution of this case can be found here.
• Mobil Oil Corporation v. Handley: Successfully brought unlawful detainer action to evict franchise dealer from service station premises and defended against cross complaint brought under the Franchise Investment Law when it was in its infancy. A copy of the Court of Appeal’s decision can be found here.
• Windy Cove, Inc. v. Circle K Stores, Inc. et al: Obtained summary judgment on behalf of Circle K Stores, Inc. in an action alleging that a distributor failed to set prices it charged for gasoline in good faith, in violation of California law. A copy of the District Court’s opinion can be found here and a copy of the 9^th Circuit’s decision affirming the District Court’s opinion can be found here.
• Yi v. Circle K Stores, Inc.: Obtained summary judgment in favor of Circle K on action brought by successor in interest to gas station franchisee against purchaser of franchisor’s contractual interests in station. A copy of the District Court’s decision can be found here and a copy of the 9^th Circuit’s decision affirming the District Court’s opinion can be found here.