In the aftermath of the U.S. Supreme Court’s ruling on the Affordable Care Act, the International Franchise Association released a statement from its President & CEO, Steve Caldeira about the predicted impact of the Act on franchise businesses nationwide.
Tag: franchisee
Clumsy Drafting In Franchise Agreements Can Haunt You: Hamden v. Total Car Franchising Corp.
A recent decision from the United States District Court from the Western District of Virginia highlights the importance of careful drafting of franchise agreements and, in particular, dispute resolution provisions.
The “Big Mac” Provision Redux: What About Franchisee Compensation?
In response to last week’s post, I received a question about whether “Big Mac” provisions do, or should, build in compensation for the franchisee who creates a new innovation. I have seen this happen on rare occasions, but in my opinion it’s a bad idea because it discourages positive system change.
When Franchisees Innovate: Discussing The “Big Mac” Provision
Domino’s introduces “Bread Bites,” which were created by a franchisee, following in the footsteps of other franchisee creations like the Big Mac. How do franchisors balance encouraging innovation but also, at the same time, protecting and enforcing brand quality and system standards?
Can Holdover Franchisees Be Held Liable For Trademark Counterfeiting?
One of the most common lawsuits in franchising involves the “holdover” franchisee. In these cases, the franchise agreement has either expired or it has been terminated. The holdover franchisee, however, continues to operate his or her business as though nothing has changed and continues to use the franchisor’s trademarks and trade dress. The recent case Century 21 Real Estate, LLC v. Destiny Real Estate Properties found that a holdover franchisee can be held liable for trademark counterfeiting, which means that potentially large punitive damage awards can be available against holdover franchisees.
Lawsuit Regarding Strip Club Ad Highlights Importance Of Franchise Brand Management
A recent lawsuit filed by sandwich franchisor Capriotti’s underlines the importance of brand management for franchise companies. The franchisor sued its Las Vegas-based franchisee, seeking to terminate the franchise agreement in reaction to the franchisee’s co-advertising campaign with a strip club, featuring the tagline “a match made in Vegas heaven: boobs and Bobbies.”
Forward Franchising 