Archive | Franchising 101

Franchising 101
Finding the best franchise is always difficult. Franchise lawyer Barry Kurtz points out a few things to consider.
 
You want to have your own business? Make a good income? Control your future? Franchising may be the ticket. Small business powers the American economy in good times and bad, but these days, the risks associated with starting your own business are greater than ever. This makes franchising a good choice for many entrepreneurs, for two reasons.  Read more…
 

Introduction of Three-Tier System of Beer Distribution Law

INTRODUCTION OF THE THREE-TIER SYSTEM Prior to the passage of the 18th Amendment in 1919, brewers and producers of other alcoholic beverages sold directly to retailers and often held ownership interests in taverns, known as “tied houses”, which led to anti-competitive business practices and unscrupulous marketing tactics aimed at inducing excessive consumption. To combat that […]

Continue Reading ·

Personal Guarantee of Franchisee Fees and Costs Upheld

What potential liabilities may owners of a terminated entity franchisee face as a result of personally guaranteeing the entity franchisee’s obligations in favor of the franchisor? As Violet Spear, the sole shareholder of Vianna, Inc., a terminated 7-Eleven franchisee in Evanston, Illinois, painfully learned, guarantors should expect to be liable for the franchisor’s attorneys’ fees […]

Continue Reading ·

Trademark Infringement: High Stakes Gamble

Something franchisees must know: Franchisees that continue to use their franchisors’ registered trademarks after their franchise agreements have been properly terminated by their franchisors could face crippling damage awards. Under the federal Lantham Act, courts may award an injured franchisor “treble damages” -three times the amount of damages actually suffered-for willful and knowing trademark infringement, and […]

Continue Reading ·

States Upping The Ante For Franchisors – A Legislative Update

Laws focusing on the franchisees’ rights are referred to as relationship laws, and in recent months, franchisee groups fighting for new relationship laws have been noticeably successful, scoring legislative victories in several states. There are some significant differences among the bills currently being considered or that have recently passed, but most are intended to restrict […]

Continue Reading ·

Out Of Control – Franchisor Not Liable For Franchisee’s Negligence

Royal Dispatch Services, Inc. operates a vehicle dispatch service franchise that receives calls from customers and refers them to its franchised drivers through a computer system Royal requires the franchisees to purchase or lease from Royal. Under Royal’s franchise agreement, franchisees may use Royal’s name, signage and trademarks, must purchase late model Lincoln town cars, must […]

Continue Reading ·

Improper Termination May Be Constructive Termination

According to a US district court judge in Budget Blinds Inc. v. LeClair, a franchisee with a franchise agreement governed by Wisconsin law may be entitled to damages from its franchisor under a claim for “constructive termination” of its franchise agreement if the franchisor does not comply with the notice and cure requirements of the Wisconsin Fair […]

Continue Reading ·

Tanning Salon Burn – Non-Compete Honored In Pennsylvania

Having a well drafted franchise agreement can prove invaluable to franchisors. A recent Pennsylvania federal district court decision in Tantopia Franchising Company, LLC v. West Coast Tans of PA, LLC et al. is a perfect reminder why non-compete provisions are important. In 2002, West Coast Tans of PA entered a franchise agreement to run a Philadelphia tanning […]

Continue Reading ·