Emmanuel Joseph was a franchised gasoline retailer for Chicago-area fuel distributor Sasafrasnet, LLC, who operated a BP-branded gasoline station in Chicago. In November 2010, Sasafrasnet notified Mr. Joseph that it was going to terminate his franchise under the Petroleum Marketing Practices Act (“PMPA”) because, on three separate occasions, it had been unable to electronically debit…

Recently, the United States District Court for the Southern District of Indiana denied franchisor Steak n Shake’s motions to compel the non-binding arbitration of three consolidated lawsuits filed by three franchisees. The decision highlights the importance of a franchisor carefully monitoring and updating its dispute resolution policies in the context of the legal risks facing…

The United States District Court for the Eastern District of Pennsylvania recently enforced a non-compete clause in a franchise agreement and granted a franchisor a preliminary injunction against its former franchisee. The court noted that Pennsylvania law recognizes that a franchisor has a legitimate business interest that can be protected by a non-compete clause, and…

In Wells v. Holiday Companies, Inc., No. A12–1476, 2013 WL 777384 (Minn. Ct. App. 2013), the Minnesota Court of Appeals reversed an order granting a motion to dismiss a class action lawsuit alleging that car wash receipts constitute gift cards that cannot expire under state law.

Under Minnesota state law, gift certificates and gift…

At the 36th Annual Forum on Franchising, Beata Krakus was recognized by the ABA with the Chair’s Future Leader Award. This award recognizes young and/or diverse Forum members who have demonstrated a substantial commitment to the Forum by undertaking significant leadership efforts, such as mentoring other Forum members or law students interested in pursuing careers…

Recently, the Eighth Circuit affirmed a ruling upholding Missouri’s liquor statute requiring a corporation that wants to obtain a wholesaler license for the sale of intoxicating liquor containing alcohol in excess of five percent to be a “resident corporation.” Pursuant to Missouri’s statute, to qualify as a “resident corporation” requires that, among other things, all …

The North American Securities Administrators Association, Inc. (NASAA) has released, for both public and internal comment, a proposed Multi-Unit Commentary related to disclosure of multi-unit franchising arrangements under the various state franchise disclosure laws.

The proposed Multi-Unit Commentary describes 3 multi-unit franchising structures and provides practical guidance related to disclosing such structures, which were not…

Thank you to everyone who attended the 2013 Distribution Symposium. Below are some key points for you to keep in mind when bringing your products or services to the market. We look forward to seeing you at the 2014 Distribution Symposium.

• Be prepared to adapt to change quickly to continue growing your business.

• Keep in

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