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 disclosure document
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.
When Are A Franchisor’s Financial Performance Representations Actionable?
Under the FTC’s Franchise Rule, a franchisor is permitted, but not required, to answer that all-important question asked by would-be franchise buyers: “how much money can I make?” Sometimes, the franchisor’s answer to that question can generate litigation.
New York Renews Its Limited Franchise Trade Show Exemption
The State of New York renewed its limited exemption to its Franchise Sales Act (N.Y. Gen. Bus. L. § 680 et. seq.) (the “Act”), which will allow franchisors that are not registered with the State to participate in the International Franchise Exposition under certain circumstances.
FTC Issues Guidance to Franchisors Regarding Disclosure of Franchise Territories
The Federal Trade Commission recently issued new guidance that will affect how franchisors disclose whether they grant exclusive territories to franchisees.
Surprise! You Just Starred In Our Movie
In a $3 million lawsuit, actor Jesse Eisenberg (star of The Social Network) claims that he was exploited by the producers of the direct-to-DVD movie, Camp Hell, when they overplayed his small role in the film by featuring his likeness on the DVD cover art. Franchising laws help to prevent this type of overstatement or puffery by requiring disclosure of important information to potential franchisees.
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