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CLAIMS BY FRANCHISEES ,[object Object],[object Object],[object Object]
CLAIMS BY FRANCHISEES ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Representing The Other Side?   ,[object Object]
FRANCHISEE PERSPECTIVE ,[object Object],[object Object],[object Object],[object Object]
The Offering Circular ,[object Object],[object Object],[object Object],[object Object],[object Object]
Offering Circular ,[object Object],[object Object],[object Object],[object Object],[object Object]
Fraudulent Inducement ,[object Object],[object Object]
“ If a contract was procured by fraud, an integration clause reciting that the written agreement was complete “ would go down the drain with the contract of which it was a part” ,[object Object]
“ No defendant may escape liability for actual fraud through the use of general disclaimers”   Healy v. Carlson Travel Network Assocs.  (dicta)
Negligent Misrepresentation   In Illinois, a defendant is not liable unless it is engaged in the “ business of supplying information ”  First Midwest Bank, N.A. v. Stewart Title Co. ,  2005 WL  119802 (1 st  Dist. 2005)  Some courts reject this argument categorically
PROMISSORY FRAUD ,[object Object],[object Object]
STATE FRANCHISE ACTS ,[object Object],[object Object],[object Object],[object Object]
Little FTC Acts ,[object Object],[object Object],[object Object]
Little FTC Acts ,[object Object],[object Object],[object Object],[object Object]
DE FACTO  FTC DISCLOSURE OBLIGATION  AT COMMON LAW WITH A PRIVATE RIGHT OF ACTION   ,[object Object]
The Franchise Agreement ,[object Object],[object Object]
EXCEPTIONS TO EVERY RULE ,[object Object],[object Object],[object Object]
Franchisor’s Interpretation: ,[object Object],[object Object]
[object Object],[object Object],[object Object],IMPLIED COVENANT OF GOOD FAITH & FAIR DEALING
[object Object],[object Object],[object Object],[object Object],[object Object],AMBIGUITY
Waiver of Good Faith & Fair Dealing ,[object Object],[object Object],[object Object],[object Object],[object Object]
Expanding the Contract                     ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Experts In Franchising ,[object Object],[object Object]
Fiduciary Duties ,[object Object],[object Object],[object Object]
STATE FRANCHISING ACTS ,[object Object],[object Object],[object Object]
Discrimination as a Defense to Termination Seventh Circuit: “ discrimination requires proof of “arbitrary disparate treatment among similarly situated individuals or entities.”  Canada Dry Corp. v. Nehi Beverage Co., Inc.,  But this holding is in question.
Terminations ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Terminations ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Good Faith vs. Good Cause ,[object Object]
[object Object]
“ Discourage litigation.  Persuade your  neighbors to compromise whenever you can. … As a peacemaker the lawyer has a superior opportunity of being a good man. There will still be business enough."

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Frequently Asserted Franchisee Causes of Action Against Franchisors

  • 1.
  • 2.
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9. “ No defendant may escape liability for actual fraud through the use of general disclaimers” Healy v. Carlson Travel Network Assocs. (dicta)
  • 10. Negligent Misrepresentation In Illinois, a defendant is not liable unless it is engaged in the “ business of supplying information ” First Midwest Bank, N.A. v. Stewart Title Co. , 2005 WL 119802 (1 st Dist. 2005) Some courts reject this argument categorically
  • 11.
  • 12.
  • 13.
  • 14.
  • 15.
  • 16.
  • 17.
  • 18.
  • 19.
  • 20.
  • 21.
  • 22.
  • 23.
  • 24.
  • 25.
  • 26. Discrimination as a Defense to Termination Seventh Circuit: “ discrimination requires proof of “arbitrary disparate treatment among similarly situated individuals or entities.” Canada Dry Corp. v. Nehi Beverage Co., Inc., But this holding is in question.
  • 27.
  • 28.
  • 29.
  • 30.
  • 31. “ Discourage litigation. Persuade your neighbors to compromise whenever you can. … As a peacemaker the lawyer has a superior opportunity of being a good man. There will still be business enough."