The Delaware Chancery Court recently issued a decision severely limiting KFC Corp.’s right to control brand marketing in a case that offers several important lessons about managing franchisee relations. The case involved a suit brought against the international fried chicken franchisor by a special purpose entity formed to develop and manage the chain’s domestic advertising. The suit centered on the scope of the NCAC’s authority to control brand advertising.
On February 16, 2011, Armstrong Teasdale and the accounting firm Fair, Anderson & Langerman co-hosted a dinner with the Nevada Development Authority for franchisors attending the International Franchise Association’s 51st annual convention in Las Vegas. The theme of the dinner, which was held at the world-famous RM Seafood restaurant, was why Las Vegas is “the best business climate in the U.S.”
Today’s edition of the Wall Street Journal has a short, but interesting, articleon a handful of the key lawsuits between franchisors and franchisees that made waves in the franchising community during 2010. Two of the cases mentioned have been discussed previously on this blog: Awuah v. Coverall, and Burger King National Franchisee Association v. Burger King. The article provides a good, if brief, summary of the decisions and their potential ramifications on the franchise industry as a whole.
The International Franchise Association’s 51st annual convention kicks off this Sunday, February 13, 2011 in my home city of Las Vegas. Let me know if you will be attending the convention. Perhaps we can arrange a time to meet in person, and I can thank you for following “Forward Franchising!”