Header graphic for print
Restaurant Reporter Legal Commentary and Resources for the Restaurant Industry

Monthly Archives: December 2010

Using Trademark Law to Build a Moat Around Your Restaurant Brand

By Sheila Fox Morrison and Riley Lagesen on Posted in Intellectual Property

I.  Restaurants build moats around brand names and products with effective trademark registration and enforcement strategies. A “moat” is a deep and wide trench around the rampart of a fortified place (as a castle) that is usually filled with water.  The purpose of a moat is to create a protective barrier around an important strategic… Continue Reading

What Drink Pairs Well with Big Stakes?

By Jess Lyon on Posted in Government/Regulation/Alcohol

The big business of alcohol has traditionally played out through quiet boardroom deals, agency relationships, and gentile hallway politics in the corridors of our state capitols.  But recently, it has become a high-stakes game in increasingly public forums. Post-prohibition regulations cloud the production, importation, distribution, promotion, and retail sale and service of alcohol in ways… Continue Reading

From the Buy Side: The Mini-Financing Contingency

By Sarah Tune on Posted in Restaurant Finance

In an ideal buyer’s world, every potential buyer or bidder in an auction would be able to negotiate a full financing contingency as a closing condition to an acquisition.  However, in a competitive bidding scenario or even in a scenario where the seller has considerable leverage in the transaction, a buyer sometimes must forgo the… Continue Reading

Restaurant Joint Ventures. Is Your Joint Venture an Inadvertent Franchise?

By Rochelle Spandorf on Posted in Franchising & Distribution

Restaurant owners have many motivations for forming joint ventures; a primary one is to finance expansion.  These arrangements go by many names, including strategic alliances and corporate partnerships, and they join complementary strengths: a restaurateur may be looking for money sources or an experienced local partner to replicate the restaurant concept in an unfamiliar market… Continue Reading

Tips for Limiting Seller Liability in Restaurant M&A Transactions

By Jake Heth on Posted in Restaurant Finance

Along with enjoying the decline in target valuations caused by the economic downturn, both strategic and financial buyers have enjoyed leverage in negotiating seller liability provisions in merger and acquisition transactions. As the economy improves, it is expected that sellers will regain some leverage in negotiating these provisions. Due to the restaurant industry’s retail and… Continue Reading

Bankruptcy Basics

By Joe VanLeuven on Posted in Restaurant Finance

There are two kinds of bankruptcy:  liquidation and reorganization.  Chapter 7 governs the liquidation of all debtors.  Chapters 9, 11, 12, and 13 provide for reorganization of different types of debtors – municipalities, companies, farmers, and individuals.    Liquidation is straightforward.  A trustee is appointed to investigate the debtor’s assets, liquidate nonexempt assets, and distribute… Continue Reading

The Pros and Cons of the Affinity Investor

By Keith Baldwin on Posted in Restaurant Finance

Restaurant businesses attract more affinity investors than most other businesses. Affinity investors tend to value the non-economic benefits of their investment more than the economic returns.  They value their ability to associate with the restaurant’s management and staff, and they enjoy the recognition they receive from friends and business associates. They also may believe that… Continue Reading

San Francisco’s Employer-mandated Health Care

By Angela Corridan on Posted in Employment & Immigration

The U.S. Supreme Court recently denied review of the 9th Circuit decision upholding the San Francisco Health Care Security Ordinance after it was challenged on the grounds that it was pre-empted by federal ERISA law.  The Supreme Court’s denial of review prompts this “refresher” on the ordinance–and the ramifications for employers.

Responding to Social Security Number “No-Matches”

By Rich Rawson on Posted in Employment & Immigration

You just got an “SSN no-match” notice – an  employee’s name does not match his or her Social Security number.  Now what? Is it grounds for termination? Should you give the employee a deadline for resolving the discrepancy? Should you ask the employee to submit new documents to re-verify his or her employment eligibility? 

Los Angeles Food Truck Regulation: A Legislative Update

By Aaron Colby on Posted in Government/Regulation/Alcohol

With the proliferation of mobile food facilities (commonly known as “food trucks”) in the Los Angeles area comes increased scrutiny and efforts to address concerns such as public safety, traffic, parking, sanitary conditions, and the impact on traditional brick-and-mortar restaurants.  For instance, it’s been reported that some food trucks currently operate without proper permits and… Continue Reading

Gift Card Regulation: A Legislative Update

By Jaymee T. Castrillo on Posted in Government/Regulation/Alcohol

Due to the popularity of gift cards in restaurants and retailers, federal and state governments have increased their role in regulating gift cards.  In this legislative update we’ll focus on “closed-loop” gift cards, those that are issued by a specific store or restaurant and which may only be used at the issuing store or restaurant. … Continue Reading