Special Considerations for Restaurants and Franchised Businesses Under the CARES Act | Modern Restaurant Management | The Business of Eating & Restaurant Management News

While few sectors are likely to be spared from the economic consequences of COVID-19, the leisure and hospitality segments have been among the hardest hit. For example, according to the March 2020 jobs report from the U.S. Department of Labor, more than 60 percent of March job losses came from restaurants and bars. In addition to being the hardest hit, these segments are heavily franchised. Accordingly, the Coronavirus Aid, Relief, and Economic Security (CARES) Act has special provisions designed to ensure that those affected will still have access to desperately needed rescue funds.

The Paycheck Protection ProgramA key component of the relief offered through the CARES Act is the forgivable federal loans offered by the Paycheck Protection Program (PPP). The PPP, which is administered by the Small Business Administration (SBA), is designed to ensure that businesses with 500 or fewer employees can continue to meet their payroll demands. In determining the number of employees for the…

Keri McWilliams

Keri McWilliams is a partner at Nixon Peabody and co-leader of the firm's Franchise & Distribution team. She represents start-ups and mid-size companies across numerous industries, including restaurants, retailers, fitness centers, health concepts, and luxury brands, in all aspects of their corporate relationships. McWilliams is also a member of the Health and Wellness initiative, and the Food, Beverage and Agribusiness team.

Wesley Gangi

Wesley Gangi is an associate in Nixon Peabody’s Corporate practice group. His practice spans a broad range of corporate matters, with a focus on mergers and acquisitions; private equity; general corporate transactions; and licensing, distribution and franchise matters.

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Keri McWilliams

Wesley Gangi