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Action by Indiana Securities Division Reminds Franchisors to Watch Those Item 7 Estimated Initial Investment Numbers

The Securities Division of the Indiana Secretary of State issued a press release this week announcing that it filed an administrative complaint against Florida based Mac and Cheese Franchise Operations LLC and its parent...more

My Start-Up or Emerging Franchise System Negotiated with a Prospective Franchisee! Now What?

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 their franchise attorney’s recommendation...more

Be Careful with Your Demands When Converting Existing Licensees to Franchisees!

A recent case decided by the Ohio Court of Appeals reminds new franchisors to tread carefully when converting existing licensees to future franchisees. In the case of Okolish v. Town Money Saver, Inc., a coupon clipper...more

Unintended Consequences of Franchise Rescission Rights

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 situations, particularly where a...more

 Recent Illinois Case A Reminder of Broad Scope of “Franchise Fee” Element

The recent case of Rhine Enters v. Refresco Beverage out of the federal district court of the Southern District of Illinois should be a reminder to licensors and manufacturers that avoiding the “fee prong” element of a...more

Just Signed! New Washington State Law Limits Use Of Non-Competes And No-Poach Agreements

Yesterday, Washington’s Governor, Jay Inslee signed HB1450 [PDF] which targets the use of restrictive covenants in the State of Washington (the “Non-Compete Act”). The signing of the Non-Compete Act follows the recent...more

Franchising: What’s In It For You?

Franchising is an excellent way to grow a business rapidly, penetrate new markets and leverage investment from the capital infusion and energy of franchisees. As a business model, franchising opens avenues for brand...more

Implied Covenant Of Good Faith Does Not Trump Express Terms

The U.S. Court of Appeals for the Third Circuit upheld a New Jersey district court’s decision that 7-Eleven did not violate the New Jersey Franchise Practices Act (NJFPA) after the franchisor terminated a New Jersey...more

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