New and emerging franchise systems are often very eager to sign those first franchisees. All too often, they are willing to make concessions to get the franchisees on board, despite
Continue Reading My Start-Up or Emerging Franchise System Negotiated with a Prospective Franchisee! Now What?
On May 11, 2023, the federal district court in Rapid City, South Dakota, concluded that the South Dakota motor vehicle dealer law did not provide an exclusive list of “good
Continue Reading Court Concludes that “Good Cause” for Termination Includes More than Items Listed in Statute
The right to rescind (or void) a contract is an extraordinary remedy. However, as franchise lawyers know, certain states provide franchisees a right to rescind a franchise agreement in certain
Continue Reading Unintended Consequences of Franchise Rescission Rights
For over 40 years, Amzi Takiedine had been a 7-Eleven franchisee when he sued his franchisor in the United States District Court for the Eastern District of Pennsylvania. The case,
Continue Reading Breach of Implied Covenants in PA
In a recent post, I expressed the view that no-poach clauses in franchise agreements are unlikely to violate the antitrust laws. Recent activity, however, has given me a “maybe
Continue Reading No-Poach and Antitrust, Part Deux (Or, is the risk worth it?)
The recent antitrust attacks on no-poach clauses encourage insomnia among franchise lawyers. But is the attack serious or just a flash in the pan, soon to be extinguished?
The insomnia
Continue Reading No-Poach Provision: The Latest Cause of Worry to Franchise Systems
In the near future, customers will likely be ordering their fast food through their smart home devices, such as Amazon’s Alexa or Google Home. Gary Vaynerchuk, chairman of VaynerX,
Continue Reading Franchising in the Smart Home Era
International franchisors inbound into the U.S. face a complex set of business decisions and legal regulations. Even seemingly simple tasks–like properly executing a franchise registration application–can become a time-consuming and
Continue Reading Sign Me Up! How To Waive the Notary Requirement for International Franchisors
A federal court in Colorado recently upheld a franchisor’s non-competition provision despite that state’s strong public policy against non-competes. The franchisor prevailed due to its thoughtful contract drafting and ability
Continue Reading Drafting Matters: Do your non-competes bind the correct parties?
If a franchisor waives the non-compete provision in its current franchise agreement, can it enforce a non-compete when the franchise agreement is renewed? According to a recent decision by the
Continue Reading Drafting Matters: When non-competes and renewal provisions collide