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New Legal Gestalt Needed for Franchise Relationships in USA

A recent franchise termination case involving a French franchisee of a French franchisor has many similarities to the prototypical wrongful franchise termination in the United States; the only real difference is that when the case was tried in France the franchisor was found guilty of an unfair franchise termination while if the case had been tried in the United States the franchisor would have walked scot-free.

Franchise and Dealer Terminations for Free Take-Backs by the Franchisor

Instant Replay: According to the franchisor, the franchisees are thieves and the franchisor is the good guy who is saving the community from corrupt people.

Franchise Terminations and Self-Inflicted Harm

In a recent franchise case the United States District Court of New Jersey (the “Court”) hammered another nail in the termination coffin of a former 7-Eleven franchisee Karamjeet Sodhi ("Franchisee Sodhi" or "Mr. Sodhi"), Manjinder Singh, and Karamjit Singh (collectively, "the Franchisees"), when it denied the Franchisees’ Motion for a stay of the Court's Order granting judgment to Plaintiff 7-Eleven.

Franchisee Prevails Early on Covenant of Good Faith and Fair Dealing Claim

One of the few tasks more daunting than trying to get Kant, Nietzsche and Plato to agree on a definition of ‘the good life’ is that of struggling to get two courts to agree on the legal meaning of the covenant of good faith and fair dealing. Indeed, some courts vociferously object to using the phraseology itself, arguing that the word ‘covenant’ must be replaced by the word ‘duty.’

Franchisee Termination Litigant Again Shattered by Esoteric Damages Rules

My article last month on franchise termination litigation set forth a somewhat detailed assessment of the law of damages in a franchise termination context, concluding in part that:

The Predictably Unpredictable Legal Morass of Franchise Termination Damages

In franchise and antitrust distribution law there is no more exasperating, elusive and esoteric issue than damages. This analytical muddle threatens franchisors and franchisees alike. Further, the doctrinal failure regarding franchise damages is so robust that it has extensively infected damages theory, methodology, and calculation.

Do You Have a Claim Against Your Franchisor?

As a franchisee, there are few things worse than coming to the realization that you may need to sue your franchisor.

Pitfalls of Signing a Franchise Agreement without Legal Representation

When evaluating a new franchise opportunity, there are plenty of considerations to keep in mind. What is the best location? Will you need to hire employees? If so, how can you find people you can trust? How and when will you roll out your initial advertising campaign?

Suing Your Franchisor? But What Does Your Franchise Agreement Say?

Most franchise agreements contain several provisions relating to dispute resolution; and, as you might expect, most of these provisions are designed to be franchisor-friendly.

Ten Worst Provisions in a Franchise Contract

If you are in the process of performing your due diligence on a franchise opportunity, you are probably struggling to comprehend the seemingly-unending legalese in the franchise agreement. Indeed, even the best franchise lawyer struggles to interpret what the drafters intended when they wrote some of the language in many of these agreement templates that, frankly, should have been overhauled long, long ago.