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|Growth: The Lifeblood of a Franchise System|
Ted P. Pearce; Nexsen Pruet, LLC;
June 21, 2013, previously published on June 2013At 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...
|Growler Sales Now Permitted in North Carolina|
M. Keith Kapp, Jennifer A. Morgan; Williams Mullen;
June 19, 2013, previously published on June 18, 2013North 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...
|CPUC 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;
June 6, 2013, previously published on June 5, 2013The 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...
|A Proposed Franchise Act for British Columbia, Canada|
John L. Rogers; Davis LLP;
May 29, 2013, previously published on May 28, 2013In 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...
|Fourth Circuit Enforces Arbitration Clause over Franchisee Challenge|
Jesse C. Ehnert, Paul R. Marino; Day Pitney LLP;
May 22, 2013, previously published on May 21, 2013In 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...
|Ohio Franchisors -- Is Your Liquidated Damages Clause Enforceable?|
Scott N. Opincar; McDonald Hopkins LLC;
May 22, 2013, previously published on May 17, 2013On 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...
|No Cure Opportunity Required Where Auto Dealer's Breach is Incurable|
Lisa M. Gonzalo, Dennis R. LaFiura; Day Pitney LLP;
May 22, 2013, previously published on May 17, 2013Many 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...
|Everything You Wanted to Know About Franchise Legislative Compliance (But Were Afraid To Ask)|
Edward (Ned) Levitt; Aird & Berlis LLP;
May 22, 2013Half 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...
|New Hampshire Supreme Court Holds Settlement Unenforceable Under Anti-Waiver Provisions of State Motor Vehicle Franchise Law|
Paul J. Halasz, Nancy Todaro; Day Pitney LLP;
May 22, 2013, previously published on May 21, 2013State 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...
|California Launches Campaign to Collect Taxes from Out-Of-State Entities|
Loeb Loeb LLP;
May 20, 2013, previously published on May 2013A 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...