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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...
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...
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...
In Northwest, Inc. v. Ginsberg, 572 U.S. 273 (2014), the United States Supreme Court held that Minnesota’s implied covenant of good faith and fair dealing may not be contracted away. In that case, the respondent was a member of airline’s frequent flyer program. Id. at...
For a franchisee, wrongful termination or non-renewal of a franchise agreement poses a serious threat to the business you’ve worked so hard to establish. It can often occur unexpectedly and for seemingly no reason. However, depending on your unique circumstances, you...
On July 12, 2018, seven franchise systems entered into legally binding “assurances of discontinuance” with the Washington State Attorney General’s Office, which required them to remove “no poach” clauses (also known as “anti-poaching,” “non-solicitation,” and/or “no...
Franchisees and franchisors need each other to survive. but that doesn’t mean every relationship is perfect. A longtime franchisee lawyer explains how franchisees can best protect their business interests. Read More *NOTICE: This blog is intended solely for...
Franchise Renewal: Rights, Obligations, and Notices When prospective franchisees are investigating a franchise opportunity, they tend to focus on the terms that will have the most immediate impact on them—the amount of the initial franchise fee, the ongoing royalty...
Assume that you are a large multi-unit franchisee and you have the opportunity to sell your business to either an existing franchisee or to someone who wants to become a multi-unit franchisee in your system. You read your Franchise Agreements (perhaps for the first...
When Actions Speak Louder Than Written Words — A Look at Franchise Agreement Modifications because of “Course of Performance” Sometimes, when the relationship between a franchisor and a franchisee has evolved in a fashion that differs from the obligations of the...