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Manufacturers Franchises

Foley & Lardner LLP

Manufacturer Acted Reasonably in Terminating a Franchisee for Failure to Abide by Agreement

Foley & Lardner LLP on

Tasty Baking Company (“Tasty”), a manufacturer of prepackaged goods, terminated Distefano, Inc. (“Distefano”), Maryland-based owner of a franchise with rights to sell Tasty products in a prescribed area called a “route.”...more

Fox Rothschild LLP

Not All Payments Qualify as “Fees” under State and Federal Definitions of a Franchise

Fox Rothschild LLP on

A recent court case (Cognex Corporation v. Air Hydro Power LLC) between a distributor and manufacturer is a reminder to franchise attorneys that not all amounts paid by a licensee to a licensor qualify as a “franchise fee”...more

Lathrop GPM

Massachusetts Federal Court Grants Manufacturer’s Motion to Dismiss Distributor’s Franchise Law Counterclaims

Lathrop GPM on

A federal court in Massachusetts has dismissed franchise claims brought against a manufacturer, concluding that the distributor had failed to identify a franchise fee that would qualify it for protection from non-renewal...more

Lathrop GPM

Tennessee Federal Court Denies Franchisor’s Motion to Dismiss Claims of Bad Faith in Denying Relocation

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A federal court in Tennessee denied a manufacturer’s motion to dismiss claims that it acted in bad faith and constructively terminated a dealership when it denied the dealer’s proposed relocation sites. Hyundai Subaru of...more

Lathrop GPM

New Jersey Federal Court Holds Automobile Retailer Association Cannot State Claim Under Franchise Practices Act

Lathrop GPM on

A federal court in New Jersey granted summary judgment to a car manufacturer, holding that a retailer coalition cannot state a claim on behalf of its members under the New Jersey Franchise Practices Act (NJFPA). N.J. Coal. of...more

Morgan Lewis

Changing the Rules on How Cars Are Sold

Morgan Lewis on

Car buying has evolved since the creation of state automotive franchise and dealer laws. The internet has brought virtually every consumer buying experience online, yet new vehicle sales are still largely a brick-and-mortar...more

Bressler, Amery & Ross, P.C.

Recent Decisions in New York and Ohio Signal that Courts and Agencies are Diligently Enforcing Laws that Protect Franchised Auto...

Two recent decisions in New York and Ohio, respectively, should – but likely will not – motivate auto manufacturers to abandon their reliance upon provably undependable “metrics” to evaluate dealers’ retail sales performance....more

Lathrop GPM

The Franchise Memorandum - Issue # 260

Lathrop GPM on

Welcome to The Franchise Memorandum by Lathrop GPM, formerly known as The GPMemorandum. Periodically, The Franchise Memorandum focuses on topics primarily of interest to companies that use distributors and dealers rather than...more

Fox Rothschild LLP

Distributor Still Not A Franchise

Fox Rothschild LLP on

A Minnesota distributor of burners is not a franchisee of the manufacturer of the burners under the Minnesota Franchise Act (“MFA”), held a federal district court in Minnesota in an action in which the distributor attempted...more

ArentFox Schiff

Warranty Reimbursement Rates Under the New California Law

ArentFox Schiff on

Actually, even dealers who haven’t questioned the value of those memberships should pay close attention to this article. Major kudos are in order for CNCDA, OCADA and the other metro dealer associations for convincing the...more

Lewitt Hackman

Franchisor 101: No Need for Good Cause

Lewitt Hackman on

A Wisconsin federal judge granted summary judgment in favor of a food service and cleaning equipment maker (“Stoelting”), ruling that minimum purchase requirements under two dealer agreements were not a franchise fee under...more

Foley & Lardner LLP

Vehicle Subscription Plans Gaining More Attention, Scrutiny

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Consumers are familiar with the two traditional options for vehicle ownership—buy a car, or lease a car. However, a new option has been emerging in recent years: vehicle subscriptions. A vehicle subscription includes a set...more

Robinson+Cole Manufacturing Law Blog

State Officials Investigate Use of Non-Competes – Manufacturers Take Notice

Regular readers know that a good part of my practice deals with the use of “post-employment restrictions” to prevent former employees from using, selling or distributing a company’s most valuable assets – its intellectual...more

K&L Gates LLP

Having The “Are You Operating an (Illegal) Franchise System Without Knowing It?” Conversation

K&L Gates LLP on

Franchising laws are very broad in scope and may inadvertently encroach upon standard licensing or distribution agreements. The repercussions for operating an illegal (or more likely inadvertent) franchise system can be very...more

McNees Wallace & Nurick LLC

Warranty Retail Rate Reimbursement:To Surcharge or Not to Surcharge, That is the Question

Pennsylvania’s dealer franchise protection law, the Board of Vehicles Act (Act), was recently amended effective December 31, 2013. Through the diligent efforts of PAA, the amendments to the Act include...more

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