We are pleased to present our 2025 Global Franchise & Supply Network Report detailing key legal developments, strategies and insights into the evolving landscape of franchising, licensing, distribution and supply chain management. This report explores various topics, including:  FTC Franchise Rule amendments Noncompete covenants Considerations when merging franchise systems Mediation trends Considerations for Item 18 of the FTC Franchise Rule California’s Franchise Investment Law Recommendations to reduce misclassification, joint employment and vicarious liability risks

On August 20, 2024, the Northern District of Texas in the case of Ryan, LLC v. Federal Trade Commission granted summary judgment to the Plaintiff Ryan, LLC, enjoining the FTC from implementing its rule banning non-compete agreements nationwide.  On April 23, 2024, the FTC passed a final rule banning most non-compete clauses in employment agreements on the purported basis of the unfair impact on competition. The ban was scheduled to go into effect on September 4, 2024. See Polsinelli Restrictive Covenant & Trade Secret Group alert. There were multiple challenges filed in various courts, including the Ryan, LLC v. FTC case. On July 3, 2024, the court granted a preliminary injunction preventing the FTC from enforcing its ban on non-competition clauses only with respect to the