Tag Archives | franchise agreement

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 […]

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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 […]

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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 […]

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Beer & Wine Franchisees Enjoy Protection From Termination

Many states, including California and Ohio, have laws protecting beer and wine distributors from the arbitrary termination of their distribution agreements by their manufacturers. Ohio’s Alcoholic Beverage Franchise Act (the “Act“) allows a successor manufacturer that acquires all or substantially all of the stock or assets of another manufacturer to terminate a distribution agreement upon 90 days […]

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No Franchise If You Don’t Pay A Fee

Under California’s Franchise Investment Law (“CFIL”), a business relationship constitutes a franchise if: 1) the franchisor grants the franchisee the right to engage in a business offering, selling or distributing goods or services substantially associated with its trademark, service mark, trade name or logotype; 2) the franchisor provides significant assistance or exercises control by prescribing […]

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Franchisees – Say No To Uniform Pricing and Promotion Mandates

After Steak N Shake Enterprises, Inc. (“SNS“) entered into 5 franchise agreements (the “Franchise Agreements“) with Stuller, SNS adopted a policy (the “Policy“) requiring franchisees to “follow set menu and pricing …, and to offer all company promotions as published.” Stuller refused to comply with the Policy because, Stuller said, compliance was not required under […]

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Negotiating a Lease

If you think signing a franchise agreement is hard on the nerves, wait till you have to talk with a landlord about a lease. Why? Because the terms of your lease can spell success or failure as easily as your franchise agreement can, and in negotiating a lease you won’t have the protection of state […]

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