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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...

 

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...

 

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).

 

HTMLYet Another Forecast - North American Light Vehicle Production Almost 17 Million in 2014
Jeffrey A. Soble; Foley & Lardner LLP;
Legal Alert/Article
January 13, 2014, previously published on January 9, 2014
Consistent with many of the forecasts out there, IRN, Inc. is forecasting a 4.5% jump in North American Light Vehicle Production in 2014. If accurate, almost 17 million light vehicles would be sold in 2014 in North America. IRN sees the Detroit 3 up over 6.5% and Nissan continuing to gain on its...

 

HTMLGrowing Your Business without Producing Unintentional Franchise Headaches
Donna Ray Berkelhammer; Sands Anderson PC;
Legal Alert/Article
January 8, 2014, previously published on January 6, 2014
Many successful businesses want to open secondary locations, or “license” the business to a third party to operate additional locations. Be very careful when setting up a third-party model - it is easy to create an accidental franchise or violate the North Carolina Business...

 

HTMLFranchising: The Route to International Expansion in the Leisure Sector
Dentons Canada LLP;
Legal Alert/Article
December 18, 2013, previously published on December 17, 2013
Franchising is a proven route to the successful international expansion of leisure businesses such as fitness studios, golf clubs and tennis schools. In the leisure sector global brands such as Curves International and Gold's Gym have used franchising successfully to grow in both traditional...

 

HTMLSupreme Court Bolsters Enforceability of Forum Selection Clause
Paul J. Halasz; Day Pitney LLP;
Legal Alert/Article
December 16, 2013, previously published on December 10, 2013
The U.S. Supreme Court decided unanimously in a December 3 decision that forum selection clauses will be enforced in "all but the most exceptional cases" when a party seeks a transfer to a contractually prescribed federal venue in a motion pursuant to 28 U.S.C. 1404(a). When the parties'...

 


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