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Articles in the Employees Category

Employees, Entities, Headline, Licenses, Organizational Structure, Regulation »

[13 Sep 2009 | No Comment | ]
When Small Businesses Go Big: Deciding Whether to Franchise or License

Mama Fu’s Noodle House started as a single Pan-Asian restaurant in downtown Atlanta. Founded by entrepreneur Martin Sprock, who expanded the outlet through his franchising company Raving Brands, the restaurant quickly grew from a single eatery to a fast-casual food chain with locations in Arkansas, Florida, Georgia, North Carolina and Texas. However, the rapid growth of the chain led to discontent among the franchisees, who believed that the company had grown too quickly without providing the support, marketing and training promised under franchise agreements. In December 2006, when it was estimated that Mama Fu’s had reached or exceeded approximately 40 restaurants within 24 months, a group of 29 franchisees and investors sued Martin Sprock, Raving Brands and Mama Fu’s, alleging a variety of claims including violations of state contract and franchise law.

Employees, Headline, Regulation »

[20 Aug 2009 | No Comment | ]
Plugging In, Clocking In

If you pay the monthly bill for your employee’s Blackberry, are you required to pay your employee for the time spent checking work-related emails and text messages? T-Mobile retail associates recently made headlines by challenging the mobile provider’s requirement that employees review their company-issued smart devices off the clock.

Contractors, Contracts, Employees, Entities, Headline, Licenses, Organizational Structure, Taxes, Working with Lawyers »

[11 Jun 2009 | No Comment | ]
Calling It Quits

The decision to quit a venture is never an easy one for an entrepreneur. When the decision is driven by financial reasons, as is often the case in a troubled economy, it can be tempting to simply walk away under the rationale that no new business means the business is dead. The excitement of new projects or the appeal of a fresh start under a new name can overshadow the headaches associated with a failing business. But as cases like Emily Lane Homeowners Association v. Colonial Development, LLC show, maintaining the shell of a company is an all-too-convenient move that leaves owners vulnerable to lawsuits and liability. The failure to properly wind up affairs may lead to a variety of repercussions.

Contracts, Employees, Headline, Intellectual Property, Working with Lawyers »

[31 May 2009 | No Comment | ]
Out Of The Bag: Pitfalls and Limitations Of The Non-Disclosure Agreement

After 20 years of employment, Rowena Cheung quit her job with Fada International, an importer of jewelry and precious stones. She not only left the company with trade experience, but also an extensive rolodex of client contacts which she used to launch her own jewelry business. However, Cheung had signed a non-disclosure agreement (NDA) before leaving the company, in which she had promised not to disclose the customer information. Her former employer, in an effort to maintain its position in the competitive jewelry import business, then filed a lawsuit against Cheung claiming that she had misappropriated customer information.

Contractors, Contracts, Employees, Headline, Internet Contracts, Marketing »

[25 May 2009 | No Comment | ]
Pay To Play: The Risks and Liabilities of Internet Advertising

San Francisco-based marketing company Member Source Media wanted to drive consumers to its branded online promotions. Like its competitors, the company registered several domain names, paid for web advertising and launched a pro-active email marketing campaign. However, the company distinguished itself from other web marketers by relying on a single surefire method of drawing consumers: offering something for nothing. In ubiquitous banner ads and email solicitations, Member Source Media dangled the promise of free gifts, such as laptop computers and iPods, in exchange for taking the time to fill out a few online surveys. These offers ultimately proved to be too good to be true.

Contractors, Contracts, Employees, Headline, Litigation, Organizational Structure »

[19 May 2009 | No Comment | ]
The Risks Of Hiring An Independent Contractor

In 2007, a 23 year-old woman hailed a Greater Houston Transportation cab and asked the driver to take her home. He began to drive toward Kingwood, a suburb outside of Houston where she lived, but ignored her request to make the exit. When the woman threatened to call the police, the driver grabbed her phone and threatened to rape her. She escaped by jumping out of the moving cab. The driver was an ex-convict who had served several prison terms for a number of felonies, including assault. Although the woman survived, she claimed that she suffered from post-traumatic stress syndrome and filed a lawsuit against Yellow Cab, the regional taxi company that employed the driver.

Contracts, Employees, Entities, Intellectual Property, Licenses, Litigation, Vendors, Working with Lawyers »

[29 Apr 2009 | No Comment | ]
Indemnifying The Taco Bell Chihuahua Dog

In 1996, a licensing manager for Taco Bell attended a trade show and came across a cartoon Chihuahua dog character called “Psycho Chihuahua.” The manager expressed an interest in using the character for its marketing campaigns, but after numerous focus groups and extensive discussions with the creators of the character, Taco Bell decided not to close a deal with the creators of the character.