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Franchisees And Dealers Nationwide
In my previous column, I introduced readers to the often shockingly one-sided and overly aggressive nature of a vast number of franchise agreements. Ronald K. Gardner, Franchising From the Franchisee Lawyer Perspective, Law.com (Sept. 27, 2019). In my next few...
On April 27, 2011, Beck Chevrolet Co., Inc., (“Beck”), a franchised motor vehicle dealer, brought suit in New York state court against General Motors (“GM”), a motor vehicle manufacturer, alleging violations of the New York Franchised Motor Vehicle Dealer Act. Beck...
There has been uncertainty in the preceding years surrounding whether the California Franchise Investment Law, Cal. Corp. Code § 31000 et seq. (“CFIL”) preempts common law fraud claims. The relevant language of the CFIL provides: Except as explicitly provided in this...
Intro If you are a franchised dealer, then odds are your contract contains terms regarding the circumstances under which your dealership may (or may not) be terminated. But did you know that you may also have some statutory termination protection as well? Many...
And the saga continues . . . In Chicago Male Medical Clinic, LLC v. Ultimate Management, Inc., No. EDCV 13-00199 SJO, 2014 WL 7180549, at *1 (C.D. Cal. Dec. 16, 2014), plaintiff filed suit against defendants arguing that defendants violated Section 5 of the Illinois...
And the saga continues . . . In Three M Enterprises, Inc. v. Texas D.A.R. Enterprises, Inc., 368 F. Supp. 2d 450 (D. Md. 2005), defendants were unable to prevail on a motion to dismiss on its argument that plaintiff was not a “franchise” under Maryland law....
And the saga continues . . . In Jon K. Morrison, Inc. v. Avis Rent-A-Car Systems, Inc., Bus. Franchise Guide (CCH) ¶ 12,701 (W.D. Wash. Nov. 20, 2003), Jon K. Morrison, Inc. (“plaintiff”) signed an agency operator’s agreement (“Agreement”) with Avis Rent-A-Car System,...
And the saga continues . . . In Romeo Maintenance & Rental v. U-Haul Company of Minnesota, Bus. Franchise Guide (CCH) ¶ 12,259 (Minn. Dist. Ct. Feb. 13, 2001), plaintiff filed suit against defendant seeking a claim for relief under the Minnesota Franchise Act....
Whether a particular relationship is considered a franchise requires an in-depth dive into both federal and state statutes defining a “franchise.” As is common in all states that have passed franchise acts, the definition of a franchise includes various elements....
What is it A right of first refusal is extremely common in the franchise industry. Most (if not all) franchise agreements contain a provision giving the franchisor a right of first refusal on the franchisee’s proposed transfer of its business, including a proposed...