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Rescission Franchise Agreements

Fox Rothschild LLP

Unintended Consequences of Franchise Rescission Rights

Fox Rothschild LLP on

The right to rescind (or void) a contract is an extraordinary remedy. However, as franchise lawyers know, certain states provide franchisees a right to rescind a franchise agreement in certain situations, particularly where a...more

Miller Canfield

Operating a Franchise Through COVID-19: Considerations for Franchisees

Miller Canfield on

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

Lewitt Hackman on

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: 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

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

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

Baker Donelson

Georgia Supreme Court to Franchisees: Read Your Contracts!

Baker Donelson on

In July 2001, sisters Michele and Lorraine Reymond approached the defendant, franchisor Legacy Academy, Inc., about the purchase of a daycare franchise to be located in suburban Atlanta. The sisters testified that Legacy...more

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