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.
Tag: franchisee
New Franchise Legislation In California Tabled Until Next Year
SB 610, which would add a statutory duty of good faith and fair dealing to the California Franchise Relationship Act, has been tabled for the year by the bill’s sponsor. It will be available for consideration by the Assembly Committee next year.
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.
Super-Sized Strikes: Nonunion Strikes Can Burn Unprepared Employers
Armstrong Teasdale will be hosting a webinar on Wednesday, July 10, 2013 at 10:00 AM Pacific / 12:00 PM Central entitled “Super-Sized Strikes: Nonunion Strikes Can Burn Unprepared Employers.” The webinar was designed to help employers (particularly those in the fast-food industry) understand how to respond to a growing trend in the restaurant and retail industry that has found nonunion employees striking in response to their perceived issues with pay.
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.
Hawaii Court Says Distribution Agreement Is Not A Franchise
A federal court in Hawaii recently issued an opinion finding that a distribution agreement is not a franchise under Hawaii’s Franchise Investment Law. Where the distributor: (1) is not permitted to “substantially associate” its business with the manufacturer; and/or (2) pays only the bona fide wholesale price for its merchandise (and no other form of compensation) to the manufacturer, the relationship will typically not be considered a franchise under state laws.
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