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California › Franchise Agreements

Foley & Lardner LLP

Franchise Agreement Requiring Out of State Mediation Is Unenforceable in California Background

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Dispute resolution provisions in franchise agreements often address how, when, and where parties will mediate. However, the enforceability of these provisions can change depending on the law of the state governing the...more

Lewitt Hackman

Service Franchisors: New Rules in California for Automatic Renewals July 1st

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From streaming services and gym memberships to software vendor agreements and e-commerce franchises, automatic contract renewals are common occurrences. Currently, California law protects consumers regarding automatic renewal...more

Foley & Lardner LLP

Actions Speak Louder Than Words: A Franchise Relationship Can Exist in Spite of a Contract’s Express Terms to the Contrary

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In OTG New York, Inc. v. Ottogi America, Inc., OTG was the exclusive regional distributor for food company Ottogi from 2008–23, during which Ottogi shipped inventory to OTG’s New Jersey warehouse. In 2024, Ottogi terminated...more

Polsinelli

California Enacts New Franchise Broker Law

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On Sept. 24, 2024, California Gov. Gavin Newsom signed Senate Bill 919, the California Franchise Broker Law, into law. Officially titled the “Franchise Investment Law: Franchise Brokers,” the California Franchise Broker Law...more

Pillsbury Winthrop Shaw Pittman LLP

Bankruptcy Court Ruling Highlights Circuit Split on Franchise Agreements

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The California decision reinforces a strict approach to assumption of franchise agreements, underscoring potential roadblocks for franchisee reorganizations. Even where a debtor is not assigning a franchise agreement,...more

Whiteford

Client Alert: Franchise Sales Likely to Get New Level of Regulation Over Third-Party Sellers

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A bill passed by the California Senate on May 22, 2024, Senate Bill No. 919 (“Bill 919”), will address a gap in the regulation of franchise sales – namely, a lack of transparency regarding the role and background of...more

Fox Rothschild LLP

My Start-Up or Emerging Franchise System Negotiated with a Prospective Franchisee! Now What?

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New and emerging franchise systems are often very eager to sign those first franchisees. All too often, they are willing to make concessions to get the franchisees on board, despite their franchise attorney’s recommendation...more

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