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Massachusetts Fair Franchise Act

Smith Gambrell & Russell LLP
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USA
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April 4 2013

The Massachusetts legislature is considering, once again, the enactment of a franchise relationshiptermination statute titled the "Massachusetts

New Jersey distributor not considered a franchise

Smith Gambrell & Russell LLP
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USA
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April 4 2013

A federal district court in New Jersey ruled that an exclusive distribution arrangement did not qualify as a franchise relationship under the New

Nebraska Franchise Practices Act amendment

Smith Gambrell & Russell LLP
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USA
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April 4 2013

Proposed legislation in Nebraska would amend the state's Franchise Practices Act to provide that a franchisee shall not be deemed an "employee" under

Franchisees bound by arbitration clauses

Smith Gambrell & Russell LLP
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USA
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April 4 2013

The U.S. Court of Appeals in Boston found that a group of janitorial business owners, who became franchisees as transferees of franchise agreements

Non-compete provision discharged through bankruptcy

Smith Gambrell & Russell LLP
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USA
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April 4 2013

A bankruptcy court in Texarkana, Texas held that breaches by two debtor-franchisees of a non-competition covenant in their franchise agreement with a

Arbitration clause valid despite claim of economic duress

Smith Gambrell & Russell LLP
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USA
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November 14 2012

Applying Connecticut law, a federal district court upheld the validity of an arbitration clause in an investment advisor franchisee's arbitration agreement despite the franchisee's claims of economic duress and unequal bargaining power

System for producing hot pizzas not a trade secret

Smith Gambrell & Russell LLP
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USA
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November 14 2012

A federal court in South Dakota dismissed claims brought by restaurant franchisor Little Caesars seeking an injunction against a franchisee from offering "all day, every day ready-for-pick-up pizzas"

Forklift dealer held to be a Missouri franchise

Smith Gambrell & Russell LLP
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USA
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November 14 2012

A federal district court ruled that a forklift dealer's relationship with its manufacturer constituted a "franchise" under the meaning of the Missouri Merchandising Practices Act, and that the manufacturer had violated the MMPA by failing to give the dealer only 22 days' notice of termination, instead of the statutorily mandated 90 days' notice

Franchisors liable for criminal acts at franchised stores

Smith Gambrell & Russell LLP
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USA
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November 14 2012

In a pair of recent decisions, California courts ruled that franchisors may be vicariously liable for criminal acts occurring at their franchisees' stores

FTC clarifies franchise rule's "exclusive territory" disclosure

Smith Gambrell & Russell LLP
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USA
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November 14 2012

On October 16, 2012, the Federal Trade Commission answered an additional "frequently asked question" regarding the 2007 amendments to its Franchise Rule