Winter 2012
Vol. 15, No. 1
Why Have the Rule? Recent Opinion May Decrease Compliance with FPR Disclosure RequirementsIn the recent decision of Ellering v. Sellstate Realty Systems Network, Inc., the court granted summary judgment in favor of the franchisor on a franchisee’s claim for statutory fraud under the Minnesota Franchise Act because of a “no reliance” clause in the parties’ franchise agreement. That decision, and other similar rulings nationwide, may have the unfortunate effect of implicitly encouraging franchisors to provide a financial performance representation outside of their FDD, despite a “negative disclosure” in Item 19, since they are unlikely to face civil liability even if the informal disclosures are false or misleading. Read more…
Inedible Arrangements: Can Arbitration Clauses and Franchisee Associations Co-Exist?
Cases balancing the rights of franchisee associations to sue for their members and the rights of franchisors to require arbitration are building toward a confrontation that could threaten the leverage of associations or the strength of ADR requirements. Read more…
The Growing Prominence of Franchisee Associations in Canada
While franchisees have remained relatively unorganized over the past 20 years, the enactment of franchise legislation in several Canadian provinces enshrining the right to associate has paved the way for the growth of franchisee associations. Franchisees have to varying degrees seized the opportunity presented to them and have developed, or are in the process of developing, associations to promote their interests within their respective franchise systems and in the broader economic landscape. There is little doubt that franchisee associations will continue exploit their protected status to gain power and influence going forward, and that franchisors will have to come to terms with this new reality. Read more…
New Section!
Pointers and Pitfalls
At the suggestion of Joe Fittante, the current Forum Chair, we have added this new “Pointers and Pitfalls” section. While open to all, this is a great opportunity for our newer members to get more involved in the Forum. Read more...
Avoiding State Comments: Recommended Integration Clause Language and Disclosure
What integration clause language should you include in Item 17(t) of the FDD and in franchise and related agreements to avoid state comment letters? Read more...
Canadian Expansion: A U.S. Attorney’s Cheat Sheet
What important differences should you keep in mind if you are a U.S. attorney assisting a franchisor with its expansion into Canada? Read more...
Forum News & Events
Message From The Chair
I hope you had a wonderful holiday season and your 2012 is off to a great start. During the holidays, many of us take time to reflect upon those things in our lives for which we are thankful. As I reflected on those things, I realized that many of them outside of my family are linked to the Forum on Franchising in one way or another. Read more…
Annual Forum Community Service Event
In keeping with the established tradition of giving back to the host community, more than 30 forum attendees, friends and family members generously donated their time and/or money in support of The Moveable Feast as part of the Community Service Event at the Annual Forum in Baltimore. Read more…
Save the Date
35th Annual Forum on Franchising, October 3-5, 2012
New Books from the Forum On Franchising: Franchise Law Compliance Manual, Second Edition
Designed as a working tool for both corporate franchise lawyers and outside counsel, the Franchise Law Compliance Manual is a practical, comprehensive guide to establishing and maintaining a successful corporate compliance program. Read more...
