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Rescission Franchisee

Miller Canfield

Operating a Franchise Through COVID-19: Considerations for Franchisees

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At the beginning of 2020, you were operating a successful franchise – you had a steady stream of customers, happy employees, and royalty and ad fund payments were regularly submitted on time. It was smooth sailing until...more

Lewitt Hackman

Franchisee 101: The (Ice Cream) Cart Before the Rescission

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A federal court in Cleveland rejected a California franchisee’s claim that an Ohio-based ice cream franchisor violated the California Franchise Investment Law (CFIL). The claim failed because the franchisee could not show it...more

Lewitt Hackman

Franchisee 101: Trademark Licensee's Rights Survive "Rejection" of Agreement in Bankruptcy

Lewitt Hackman on

On May 20, 2019, the U.S. Supreme Court ruled that a bankrupt debtor’s “rejection” of a trademark licensing agreement does not terminate the licensee’s rights. This was under a part of the Bankruptcy Code that provides for...more

Lewitt Hackman

FRANCHISEE 101: Technical Disclosure Violations

Lewitt Hackman on

The consequences to an unwitting franchisor can be severe when it fails to provide disclosure documents required by franchise law. Most franchise laws provide for rescission of the franchise agreement, allowing the franchisee...more

Lewitt Hackman

FRANCHISEE 101: How Far Do Earnings Projections Go?

Lewitt Hackman on

A franchisor is allowed to make "financial performance representations" in its disclosure documents. These figures may project how much money a franchisee is likely to make and can play a critical part in the franchisor's...more

Lewitt Hackman

FRANCHISOR 101: Disclosure Violations & Running the Risks of Rescission

Lewitt Hackman on

Despite a district court's recent decision in Braatz, LLC v. Red Mango FC, LLC, franchisors are well advised to comply with applicable disclosure requirements to a "T" to ensure new franchisees will not have an ongoing right...more

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