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June 2012 Archives

New Court Decisions - Duty to Protect & Enhance Brand?

On June 21, 2012, the Superior Court for the District of Montreal, Quebec, Canada entered a judgment for $16.4 Million against the Canadian Dunkin Donuts franchisor in favor of 21 former franchisees.  The court held, among other things in a new court decision, that the franchisor breached an express or implied contractual obligation to protect and enhance its brand. 

New Court Decisions - Franchisee or Employee?

Two new court decisions, in March and in June of this year, out of Massachusetts raise the issue of what is the line between a franchisee and an employee.  Acknowledging that Massachusetts has some unique laws regarding classification of employees and that at least one state (Georgia) has given franchisors an exemption, the decisions in those cases are worth some thought by every franchisor--and franchisee.

Buying a Franchise--Duty to disclose high failure rates?

Franchise site BlueMauMau (25 Worst) just released a list of the 25 worst franchise investments-without even asking the question of whether such extraordinarily bad results give rise to a duty to disclose high failure rates to those who are buying a franchise.

Buying a Franchise - Watch the Statute of Limitations

Every franchisee, at the beginning, goes through a "honeymoon" period that can last a few years. That phase can have a very dangerous side-effect of causing you to be unable to successfully make a claim if the franchisor did something wrong. It is very important when buying a franchise that you watch the statute of limitations.

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