One of the most common provisions in franchise agreements is the “forum-selection” clause. This article examines the forum-selection provision and a recent case involving such a provision, Maaco Franchising Inc. v. Tainter.
Tag: franchise agreement
Franchisee Who Ignored His Disclosure Document Loses Lawsuit
A franchisee who sued his franchisor for fraud learned the hard way why it’s important to read the Franchise Disclosure Document, cover to cover, before buying a franchise. The California Court of Appeals ruled against him because the disclosure document Big O gave to the franchisee before he bought contradicted each and every one of his claims.
Franchisor Unsuccessful In Relying On Exculpatory Clauses To Avoid Fraud Claim By Franchisee
A recent Wisconsin Court of Appeals case addresses the use of exculpatory clauses in franchise agreements, and determines that the clauses relied upon by the franchisor to avoid liability were both insufficiently specific and not conspicuous. As a result, the exculpatory clauses failed to protect the franchisor against fraud claims by the franchisee.
General Release Of Claims Enforced Against Former 7-Eleven Franchisees
A recent decision from a federal court in California addresses the enforceability of a general release of claims signed by former franchisees.
Franchisees Who Faked Evidence In Court Case Permitted To Continue Litigating
It should be obvious that it is never a good idea to lie to a court of law. That’s a pretty basic concept, right? Lying in court documents is called “perjury,” and it’s a crime in every State in the union. So it’s always interesting to hear a story about someone who failed to grasp this fairly simple concept — and how they got caught doing it. This time it was the Husains, longtime McDonald’s franchisees, who lied to a court in Northern California in litigation against their franchisor.
Italian Franchisee Loses Lawsuit Brought Under The Laws Of . . . California?
Here’s an interesting case I recently came across. It features a franchisee based in Italy suing its California-based franchisor in California, alleging violations of California’s franchise laws.
Forward Franchising 