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|Use of a Computer Inventory Control System Based On a Franchise Agreement - Franchise Law|
Michael Rainer, Michael Rainer; GRP Rainer LLP;
October 8, 2013, previously published on October 8, 2013The right to use a computer inventory control system depends in particular on the provisions of the franchise agreement and any amendments thereto.
|Seven Strategic Steps to Avoid Franchisor Liability|
Susan E. Wells; Jaburg & Wilk, P.C.;
October 2, 2013One of the hallmarks of franchising is consistency of the brand and operations across the franchise system. If well executed, that consistency gives the public the impression that the franchise system is a centrally-owned operation. Most people don’t know the difference between business...
|Attention Auto Dealers: What Constitutes Good Cause to Terminate Your Dealership Agreement?|
McDonald Hopkins LLC;
September 25, 2013, previously published on September 23, 2013Under Ohio law, a franchisor must have “good cause” in order to terminate a motor vehicle franchise. That good cause cannot include the failure to achieve any unreasonable or discriminatory performance criteria. In order to comply with the law, the Japanese auto manufacturer Nissan...
|Survival of the Fittest: Why Do Some Franchise Systems Survive When Other Fail?|
Corby Cochran Anderson, Ted P. Pearce; Nexsen Pruet, LLC;
August 29, 2013, previously published on August 2013What had 28 flavors, nearly 1,000 locations, and a ubiquitous orange roof? If you answered Howard Johnson's Restaurants, then you are one of a dwindling number of people who can still appreciate the power that brand once had. At one time, Howard Johnson's was the largest restaurant chain in the...
|California: Withholding Voluntary Compliance Program Provides Benefits to Those with Past-Due Taxes|
McDonald Hopkins LLC;
August 24, 2013, previously published on August 22, 2013The California Franchise Tax Board (FTB) recently began a program to provide relief to those who qualify with past-due nonwage withholding taxes, called the Withholding Voluntary Compliance Program (WVCP).
|Investing Your Way to a Green Card: Franchising May be the Avenue|
Irena Juras, Susan E. Wells; Jaburg & Wilk, P.C.;
August 15, 2013The global recession has been challenging for most of us. However, one of the silver linings of the global recession is that certain franchisors are focusing on immigrants as franchisees. If you have the funds, and you meet a franchisor’s criteria, you may be able to invest your way to...
|Attention Restaurant Operators: The Perishable Agricultural Commodities Act May Apply To You|
Scott N. Opincar; McDonald Hopkins LLC;
August 15, 2013, previously published on August 14, 2013Both sellers and buyers of perishable agricultural commodities need to be careful to comply with PACA’s rules and regulations. Directors and officers of buyers of perishable agricultural commodities subject to PACA must be aware of their fiduciary duties in order to avoid potential individual...
|Auto Parts Distributor Avoids Liability In Robinson-Patman Suit|
Benjamin R. Dryden, Christopher H. Grigorian; Foley & Lardner LLP;
August 14, 2013, previously published on August 12, 2013On July 19, 2013, the Ninth Circuit affirmed an award of summary judgment to an aftermarket auto parts distributor that had received better prices than a competitor. Gorlick Distribution Centers, LLC v. Car Sound Exhaust System, Inc., 2013 U.S. App. LEXIS 14635 (9th Cir. 2013). In rejecting the...
|Severe Consequences for Franchisor Executives: Personal Liability and Non-dischargeable Debt|
David L. Cahn, Katelyn P. Vu; Whiteford, Taylor & Preston L.L.P.;
July 29, 2013, previously published on July 24, 2013“Do not pass Go, do not collect $200” is a phrase we all remember from the childhood game Monopoly. Like Monopoly, state franchise sales laws have rules and regulations that must be followed. A franchisor’s failure to follow these basic procedural rules for selling franchises can...
|Another Court Ruling Shows Franchisors the Value of Providing an Item 19 FPR|
David L. Cahn; Whiteford, Taylor & Preston L.L.P.;
July 29, 2013, previously published on July 24, 2013Take-away: Franchisors cannot rely on disclaimers in the contracts and FDD to protect against claims of providing false financial information.