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Before committing to a franchise business, consider...
New Jersey appears poised to adopt a unique “average retail labor time allowance” multiplier to the compensation OEMs must pay dealers for warranty service, after both houses of that state’s Legislature voted on June 30, 2025...more
A federal court recently denied a dealer’s request for preliminary injunction to halt the termination of a dealership agreement with a manufacturer of liquor control systems. The dealer’s acts and omissions during the...more
On May 1, 2025, the Wage and Hour Division (“WHD”) of the U.S. Department of Labor (“DOL”) issued a Field Assistance Bulletin stepping back from a restrictive independent contractor rule issued under the Biden...more
A Washington state appeals court has clarified the scope of Washington’s Franchise Act in Lucid Group USA, Inc. v. State of Washington, Department of Licensing. There, Lucid Group USA, Inc. (“Lucid Group”), the dealer, wanted...more
The Superior Court of Connecticut addressed a contractual dispute between a manufacturer of snow removal equipment and its distributor. HP Fairfield, a distributor of snow removal equipment, argued that a manufacturer, CIVES...more
A non-resident of Minnesota can sue a manufacturer for violation of the Minnesota Franchise Act. At the same time, the non-resident’s purchase of the manufacturer’s products at bona fide wholesale prices did not constitute...more
Tasty Baking Company (“Tasty”), a manufacturer of prepackaged goods, terminated Distefano, Inc. (“Distefano”), Maryland-based owner of a franchise with rights to sell Tasty products in a prescribed area called a “route.”...more
A recent court case (Cognex Corporation v. Air Hydro Power LLC) between a distributor and manufacturer is a reminder to franchise attorneys that not all amounts paid by a licensee to a licensor qualify as a “franchise fee”...more
A federal court in Massachusetts has dismissed franchise claims brought against a manufacturer, concluding that the distributor had failed to identify a franchise fee that would qualify it for protection from non-renewal...more
A federal court in Tennessee denied a manufacturer’s motion to dismiss claims that it acted in bad faith and constructively terminated a dealership when it denied the dealer’s proposed relocation sites. Hyundai Subaru of...more
A federal court in New Jersey granted summary judgment to a car manufacturer, holding that a retailer coalition cannot state a claim on behalf of its members under the New Jersey Franchise Practices Act (NJFPA). N.J. Coal. of...more
Car buying has evolved since the creation of state automotive franchise and dealer laws. The internet has brought virtually every consumer buying experience online, yet new vehicle sales are still largely a brick-and-mortar...more
Two recent decisions in New York and Ohio, respectively, should – but likely will not – motivate auto manufacturers to abandon their reliance upon provably undependable “metrics” to evaluate dealers’ retail sales performance....more
Welcome to The Franchise Memorandum by Lathrop GPM, formerly known as The GPMemorandum. Periodically, The Franchise Memorandum focuses on topics primarily of interest to companies that use distributors and dealers rather than...more
A Minnesota distributor of burners is not a franchisee of the manufacturer of the burners under the Minnesota Franchise Act (“MFA”), held a federal district court in Minnesota in an action in which the distributor attempted...more
Actually, even dealers who haven’t questioned the value of those memberships should pay close attention to this article. Major kudos are in order for CNCDA, OCADA and the other metro dealer associations for convincing the...more
A Wisconsin federal judge granted summary judgment in favor of a food service and cleaning equipment maker (“Stoelting”), ruling that minimum purchase requirements under two dealer agreements were not a franchise fee under...more
Consumers are familiar with the two traditional options for vehicle ownership—buy a car, or lease a car. However, a new option has been emerging in recent years: vehicle subscriptions. A vehicle subscription includes a set...more
Regular readers know that a good part of my practice deals with the use of “post-employment restrictions” to prevent former employees from using, selling or distributing a company’s most valuable assets – its intellectual...more
Franchising laws are very broad in scope and may inadvertently encroach upon standard licensing or distribution agreements. The repercussions for operating an illegal (or more likely inadvertent) franchise system can be very...more
Pennsylvania’s dealer franchise protection law, the Board of Vehicles Act (Act), was recently amended effective December 31, 2013. Through the diligent efforts of PAA, the amendments to the Act include...more