This past week I attended the ABA Franchise Forum in Baltimore for the fifth year in a row.  One of the traditions of the Forum is the annual presentation on Franchise and Distribution Law Developments. This year, Lee Plave and Stuart Hershman delivered an excellent presentation during which Iowa took center stage with the KFC decision discussed in my last blog post. Stu Hershman described it as perhaps the most significant franchise case of the year.

The presenters raised the question about whether franchisors should voluntarily disclose royalty revenues to the Iowa Department of Revenue in order to avoid penalties and interest. It will also be interesting to see how aggressive Iowa (and other states) will be in pursuing out-of-state franchisors for income and other tax purposes in light of the U. S. Supreme Court’s refusal to hear an appeal of the Iowa decision. No matter what the KFC decision is a case franchisors should not ignore.

Print:
Email this postTweet this postLike this postShare this post on LinkedIn
Photo of Rush Nigut Rush Nigut

Rush Nigut is a shareholder with the Brick Gentry Law Firm in West Des Moines, Iowa. His practice includes both transactional and litigation matters including franchising and business law. Rush started his legal blog, Rush on Business, in 2006. He has been quoted…

Rush Nigut is a shareholder with the Brick Gentry Law Firm in West Des Moines, Iowa. His practice includes both transactional and litigation matters including franchising and business law. Rush started his legal blog, Rush on Business, in 2006. He has been quoted or referenced by hundreds of other blogs, websites, and publications. He also is the editor of the Brick Gentry Trial Team blog and can help you identify the most qualified lawyer at Brick Gentry to handle your case. Our lawyers have a breadth of trial experience in personal injury, employment discrimination, business litigation, IP law, and class action cases.