Crouching Tiger: Franchise Regulators Pounce on Franchisors

The following article appeared in the March/April, 2010 issue of Business Law Today

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TTAB Finds "KHORAN" for Wines Disparaging

An interesting case; the Trademark Trial and Appeal Board (TTAB) found that "KHORAN" for wines is disparaging: thettablog.blogspot.com/2010/03/precedential-no-9-divided-ttab-panel.html.

9th Circuit Finds "Back of the House" Tip Pooling Does Not Violate FLSA

Employers may not claim tip credit against—and must pay—minimum wage

On Feb. 23, 2010, the U.S. Court of Appeals for the 9th Circuit, in a 3-0 panel decision, held that an agreed-to tip pool requiring sharing of tips with the “back of the house” does not violate the Fair Labor Standards Act (FLSA) where no tip credit against the minimum wage is claimed. Cumbie v. Woody Woo, Inc., ___ F.3d ___ .*

The court’s decision may be helpful to employers in the hospitality and restaurant industry that want to broaden their tip pools to back of the house employees, such as dishwashers and cooks.

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Scam Alert: Oregon Restaurants and Bars Are Being Targeted!

A new scam is targeting Oregon restaurants and bars!

Oregon restaurants and bars should be aware of a new scam targeting them. The scam preys on those who may have inadvertently let their business registration status or license lapse.  The scammer sends threatening letters to these businesses and demands money in exchange for not filing complaints with the OLCC.  The scammer claims the business's failure to keep government paperwork up-to-date threatens its licensing status with the OLCC.

The scammer’s threats are largely empty. In most instances, updating your business information and corporate status with the Oregon Secretary of State and the OLCC are relatively straight forward. It is highly advisable to contact your attorney, the Oregon Secretary of State or the OLCC before responding to any such requests for money.

A business who receives this type of threatening letter is being advised by the Oregon Secretary of State to contact 1) their local police department to file a criminal complaint, 2) the OLCC at 800-452-6522, and 3) the Oregon Secretary of State Corporation Division at 503-986-2200, for assistance updating and renewing business registrations.

For more information, visit the Oregon Secretary of State at www.sos.state.or.us/corporation/scam_alert/inactive_business_OLCC_scam.htm.

DWT Congratulates its 2010 James Beard Foundation Awards Restaurant and Chef Award Semifinalists

OUTSTANDING RESTAURATEUR
Michael Dellar, Lark Creek Restaurant Group (San Francisco)
Tom Douglas, Dahlia Bakery, Dahlia Lounge, Etta’s, Lola, Palace Kitchen, Serious Pie (Seattle)

OUTSTANDING RESTAURANT
Delfina (San Francisco)

BEST NEW RESTAURANT
Ping (Portland, Ore.)

OUTSTANDING WINE AND SPIRITS PROFESSIONAL
Stephen R. McCarthy, Clear Creek Distillery (Portland, Ore.)

BEST CHEF: NORTHWEST
Jenn Louis, Lincoln (Portland, Ore.)
Andy Ricker, Pok Pok (Portland, Ore.)

Samuelsson to Open Red Rooster Harlem

Chef Marcus Samuelsson is set to open his new restaurant, Red Rooster Harlem, this fall:
www.nytimes.com/2010/02/21/fashion/21night.html

California Pizza Kitchen Announces New Franchise Partnership with USC Hospitality

DWT helps bring client California Pizza Kitchen to the University of Southern California:
www.marketwatch.com/story/california-pizza-kitchen-to-open-at-the-university-of-southern-california-2010-02-18?reflink=MW_news_stmp

10 Stress-Reducing Tips for Updating Franchise Disclosure Documents and Renewing State Registrations

Federal law requires all franchisors to update their franchise disclosure document (FDD) within 120 days after their fiscal year end (FYE). Likewise, state registrations must be renewed annually. Since most franchisors have a December 31 FYE, this is “renewal season,” the annual rite of racing the clock to meet updating and filing deadlines to prevent the lights from going out on franchise sales activities. Whether 12/31 or some other date is your company’s FYE, here are 10 stress-reducing tips for getting the job done right.

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Who is Lending to Hotels? - Program Summary

The second in a series of executive roundtables moderated by Gerry Adams of Clothier and Head and directed at the opportunities and challenges facing hotel owners and operators in the current economic environment was held on February 1, 2010 at the offices of Davis Wright Tremaine LLP in Seattle.

To view the entire summary, click here

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Q&A on Restaurant Investments

The following is a pithy discussion on investment in the restaurant space: http://www.pehub.com/63260/qa-on-ma-roarks-steve-romaniello-on-restaurant-deals