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Rescission Franchisors

Lewitt Hackman

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

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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

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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?

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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

Crossing the Line: Don't Let Business Clients Become Accidental Franchisors

Lewitt Hackman on

Too often, expansion-minded business owners choose to offer trademarked products or services through purported licensing agreements or distribution or dealership arrangements only to discover, well into the game, that what...more

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