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HTMLTen Contract Provisions That a Prospective Franchisee Should Consider Before Signing a Franchise Agreement
Ted P. Pearce; Nexsen Pruet, LLC;
Legal Alert/Article
February 18, 2014, previously published on February 10, 2014
The saying that “love is blind” is as true in picking a franchise as in finding a soul-mate. Most prospective franchisees tend to shop franchise concepts instead of franchise agreements. They focus their search on hot concepts, franchise systems that have a good track record, and...

 

HTMLFinancial Performance Representations
Nexsen Pruet LLC;
Legal Alert/Article
February 18, 2014, previously published on February 11, 2014
On Tuesday February 11th, the Charlotte Business Franchise Network met on the 15th floor conference room at Nexsen Pruet. The attendees, representing a broad cross section of franchisors, master franchisees, and franchise suppliers, were undaunted by the weather, and gathered to talk about...

 

HTMLFranchisors Must Repurchase Damaged Equipment From Franchisees Upon Rescission
Brooke MacKenzie, Adam Ship; McCarthy Tétrault LLP;
Legal Alert/Article
February 17, 2014, previously published on February 4, 2014
In the latest installment of the Springdale Pizza Depot franchise dispute, the Ontario Superior Court of Justice clarified that, upon rescission, franchisors must buy back supplies and equipment purchased by the franchisee pursuant to the franchise agreement - even if the equipment is in very poor...

 

HTMLIndividual Guarantors in Alberta: Trap for the Unwary and Extra Cost
Jonathan Fleisher, Monique Sassi; Cassels Brock & Blackwell LLP;
Legal Alert/Article
February 14, 2014, previously published on February 12, 2014
On December 11, 2013, Alberta Bill 44: Notaries and Commissioners Act, received royal assent. The Bill which will come into force upon proclamation, amends the Alberta Guarantees Acknowledgment Act and in turn, changes Alberta law as it applies to any guarantee with an individual guarantor.

 

HTMLDrafting General Release Clauses in Franchise Agreements: A Cautionary Tale from the Ontario Superior Court of Justice
Brooke MacKenzie, Tyler McAuley, Adam Ship, Thomas N.T. Sutton; McCarthy Tétrault LLP;
Legal Alert/Article
February 12, 2014, previously published on February 10, 2014
The Ontario Superior Court of Justice recently struck down a general release clause in a franchise agreement, even though the franchisor only sought a release with respect to non-statutory claims. The case provides important guidance regarding how to draft a release that will withstand scrutiny...

 

HTMLCourt Authorizes City Subsidy to Car Dealer Two Years After Dealer Relocates to City
Kronick Moskovitz Tiedemann Girard A Law Corporation;
Legal Alert/Article
February 12, 2014, previously published on February 10, 2014
Juan Lou Gonzales ("Gonzales") owned a Saturn dealership in Palmdale. During the recent recession, General Motors ("GM") stopped making Saturn cars. As a result, Gonzales sought and was conditionally awarded a Chevrolet franchise from GM. GM’s conditions required that...

 

HTMLFranchise Tax Board Adopts Regulations to Implement the Finnigan Rule
McDonald Hopkins LLC;
Legal Alert/Article
January 17, 2014, previously published on January 16, 2014
The California Franchise Tax Board has amended Section 25106.5, Title 18 of the California Code to reflect the legislature’s adoption in 2009 of the Finnigan rule for taxable years beginning on or after Jan. 1, 2011. As explained below, the Finnigan rule is one of two primary methods which...

 

HTMLRestaurant and Retail Franchisors: Could This Be You in 2014?
David L. Cahn; Whiteford, Taylor & Preston L.L.P.;
Legal Alert/Article
January 15, 2014, previously published on January 14, 2014
The case of Wojcik v. Interarch, Inc., currently pending in the U.S. District Court for the Northern District of Illinois against the fast casual restaurant franchisor Saladworks, LLC, contains a factual scenario that should serve as a valuable reminder for existing franchisors who are updating...

 

HTMLRecent Franchise Non-Compete Cases Show Unpredictability of Enforcement
David L. Cahn; Whiteford, Taylor & Preston L.L.P.;
Legal Alert/Article
January 15, 2014, previously published on January 14, 2014
Summary: Recent cases involving attempted enforcement of covenants not to compete by franchisors show the unpredictability of the results in such cases. However, careful reading of the factual circumstances of the cases also supports the adage that “bad facts make bad law.” So it...

 

HTMLThinking About Buying a Franchise?
Susan E. Wells; Jaburg & Wilk, P.C.;
Legal Alert/Article
January 14, 2014
If you’re considering purchasing a franchise, you’re probably overwhelmed by the size of the Franchise Disclosure Document (or, as it’s colloquially called, the “FDD”) and firmly believe that the franchisor’s lawyer gets paid by the word (no, we don’t).

 


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