Deslandes v. McDonald's

The Federal Trade Commission joined with the U.S. Department of Justice in an amicus brief filed with the United States Court of Appeals for the Seventh Circuit in Deslandes v. McDonald’s USA, LLC. The brief argues that “no-hire” provisions in franchise agreements can be horizontal in nature and that such agreements are per se unlawful unless the defendants establish that they are ancillary to the franchise agreement, which requires a showing that they are reasonably necessary to achieve a procompetitive objective. It also argues that the Supreme Court’s recent decision in NCAA v. Alston did not change the standards for determining whether a horizontal restraint is per se illegal or subject to quick-look condemnation.