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.
Tag: franchisor
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.
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.
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.
Forward Franchising 