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HTMLGrowth: The Lifeblood of a Franchise System
Ted P. Pearce; Nexsen Pruet, LLC;
Legal Alert/Article
June 21, 2013, previously published on June 2013
At a recent meeting of Charlotte’s Franchise Business Network, sponsored by the International Franchise Association (the IFA) and Nexsen Pruet, 40 participants from a range of franchise concepts discussed paths to growing a franchise system, from the perspective of franchisors and...


HTMLGrowler Sales Now Permitted in North Carolina
M. Keith Kapp, Jennifer A. Morgan; Williams Mullen;
Legal Alert/Article
June 19, 2013, previously published on June 18, 2013
North Carolina Governor Pat McCrory signed the growler legislation into law on 12 June 2013, and the law is now in effect. As a result, businesses holding on-premises malt beverage permits, off-premises malt beverage permits, or wine shop permits, may begin selling growlers in accordance with the...


HTMLCPUC Rulemaking to Decide if Localities will be Shut Out of State Video Franchise Renewal Process
Gail A. Karish, Harriet A. Steiner, Joseph Van Eaton; Best Best & Krieger LLP;
Legal Alert/Article
June 6, 2013, previously published on June 5, 2013
The California Public Utilities Commission (CPUC) recently launched a proceeding to establish the rules that holders of state video franchises (such as Comcast, Time Warner Cable, Verizon, AT&T and others) must follow to obtain renewal of their franchises issued pursuant to the Digital...


HTMLA Proposed Franchise Act for British Columbia, Canada
John L. Rogers; Davis LLP;
Legal Alert/Article
May 29, 2013, previously published on May 28, 2013
In March, 2013, the British Columbia Law Institute (“B.C. Institute”) published a “Consultation Paper on a Franchise Act for British Columbia” (the “B.C. Consultation Paper”), which includes a review of the structures of various types of franchise systems, the...


HTMLFourth Circuit Enforces Arbitration Clause over Franchisee Challenge
Jesse C. Ehnert, Paul R. Marino; Day Pitney LLP;
Legal Alert/Article
May 22, 2013, previously published on May 21, 2013
In a recent case involving three different challenges to an arbitration clause in a franchise agreement, the U.S. Court of Appeals for the Fourth Circuit held that the arbitration clause was enforceable despite the agreement's inclusion of (1) a class-action waiver, (2) a fee-splitting clause, and...


HTMLOhio Franchisors -- Is Your Liquidated Damages Clause Enforceable?
Scott N. Opincar; McDonald Hopkins LLC;
Legal Alert/Article
May 22, 2013, previously published on May 17, 2013
On October 31, 2012, the United States District Court for the Southern District of Ohio denied a franchisor’s demand for liquidated damages against two franchisees. The case, Leisure Systems, Inc. v. Roundup LLC, provides guidelines for determining whether liquidated damages clauses are...


HTMLNo Cure Opportunity Required Where Auto Dealer's Breach is Incurable
Lisa M. Gonzalo, Dennis R. LaFiura; Day Pitney LLP;
Legal Alert/Article
May 22, 2013, previously published on May 17, 2013
Many state motor vehicle dealer statutes require that franchisors provide dealers with an opportunity to cure contractual breaches prior to implementing terminations. The question of whether such a statutorily-mandated cure provision required a motor vehicle franchisor to provide a dealer with an...


Adobe PDFEverything You Wanted to Know About Franchise Legislative Compliance (But Were Afraid To Ask)
Edward (Ned) Levitt; Aird & Berlis LLP;
Legal Alert/Article
May 22, 2013
Half of all the Canadian provinces, Alberta, Manitoba, Ontario, New Brunswick and Prince Edward Island, now have franchise specific legislation. Thankfully, from a franchisor’s perspective, these statutes are remarkably similar. There are differences, but they tend to be more technical in...


HTMLNew Hampshire Supreme Court Holds Settlement Unenforceable Under Anti-Waiver Provisions of State Motor Vehicle Franchise Law
Paul J. Halasz, Nancy Todaro; Day Pitney LLP;
Legal Alert/Article
May 22, 2013, previously published on May 21, 2013
State motor vehicle franchise laws often proscribe agreements that purport to waive the statutory protections afforded to dealers. Thus, when a new franchise relationship is formed, a manufacturer cannot pressure the new dealer into forgoing legislative safeguards against termination or...


HTMLCalifornia Launches Campaign to Collect Taxes from Out-Of-State Entities
Loeb Loeb LLP;
Legal Alert/Article
May 20, 2013, previously published on May 2013
A common misperception is that an entity formed in a state other than California is not subject to tax by California, which is fueled by a considerable amount of advertising encouraging Californians to save taxes by incorporating out of state. In reality, where an entity is formed has no impact on...


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