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Log In / Register | Jun 24, 2018

In Minnesota It Takes the Wizard of Oz to Prove Franchisor Fraud

The United States District Court for the District of Minnesota on January 12, 2016, in Moxie Venture L.L.C., et al. v. The UPS Store, Inc., 2016 U.S. Dist. LEXIS 3603, hammered the final nail in the coffin of franchisee fraud claims under the Minnesota Franchise Act.

Pitfalls of a Franchise Agreement

Franchise companies are required by law to provide prospective franchisees a franchise agreement. The franchise agreement lays out the company's guarantees and states the legal limits under which they are obligated.

What Happens if a Franchisor Revokes a Franchise Agreement?

Can franchise owners take assurance in their franchise agreement? Such agreements, or multi-page contracts, govern the relationship between the franchisor and the franchisee. However, the franchisee may lack options to defend against unanticipated actions, such as the franchisor’s revocation of the agreement.

Adhesion Contract

A "take it or leave it" standard form contract in which one party is able to dictate almost all the terms of the agreement to the other party.

Ex-Franchisee Stopped from Running Competing Business against H&R Block

NEW YORK - A district court has ordered a former H&R Block franchisee to stop operating her competing business because she is in violation of her covenant not to compete with the franchisor.

Franchisors, Negotiate Agreements Up Front or Risk Repaying Later

Franchisors that elect not to negotiate franchise agreements up front with franchisees run the risk of negotiating contracts forever. "You can pay me now or you can pay me later."

Franchise Disclosure Document Items

When the Franchise Disclosure Document and franchise contract is properly reviewed it can tell a story about the franchisor.

Franchisor BP Can Keep Vendor Rebates

Judge Highberger strikes again. A California appellate court has upheld Highberger's ruling in favor of oil giant BP, permitting the franchisor of AMPM gas stations to keep debit card surcharges and vendor kickbacks.