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Manufacturers Franchises

Nelson Mullins Riley & Scarborough LLP

New Jersey Poised to Adopt Unique Warranty Time Multiplier: Latest Development In Statutory Warranty Reimbursement Requirements

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

Foley & Lardner LLP

A Shot of Reality: Court Denies Dealer’s Request for Preliminary Injunction to Stop Termination of Dealership Agreement

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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

Foley & Lardner LLP

DOL Alters Enforcement Position on Independent Contractors: What Does It Mean For Manufacturers and Franchisors?

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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

Foley & Lardner LLP

A Lucid Interpretation of “Affiliates” under Washington’s Franchise Act

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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

Foley & Lardner LLP

Manufacturer and Distributor’s Relationship Is Not a Franchise Under Connecticut Law

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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

Foley & Lardner LLP

Non-Resident May Sue Under Minnesota Franchise Act, but Payment for Goods at Wholesale Prices Is Not a Franchise Fee

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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

Foley & Lardner LLP

Manufacturer Acted Reasonably in Terminating a Franchisee for Failure to Abide by Agreement

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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

Fox Rothschild LLP

Not All Payments Qualify as “Fees” under State and Federal Definitions of a Franchise

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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

Lathrop GPM

Massachusetts Federal Court Grants Manufacturer’s Motion to Dismiss Distributor’s Franchise Law Counterclaims

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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

Lathrop GPM

Tennessee Federal Court Denies Franchisor’s Motion to Dismiss Claims of Bad Faith in Denying Relocation

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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

Lathrop GPM

New Jersey Federal Court Holds Automobile Retailer Association Cannot State Claim Under Franchise Practices Act

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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

Morgan Lewis

Changing the Rules on How Cars Are Sold

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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

Bressler, Amery & Ross, P.C.

Recent Decisions in New York and Ohio Signal that Courts and Agencies are Diligently Enforcing Laws that Protect Franchised Auto...

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

Lathrop GPM

The Franchise Memorandum - Issue # 260

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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

Fox Rothschild LLP

Distributor Still Not A Franchise

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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

ArentFox Schiff

Warranty Reimbursement Rates Under the New California Law

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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

Lewitt Hackman

Franchisor 101: No Need for Good Cause

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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

Foley & Lardner LLP

Vehicle Subscription Plans Gaining More Attention, Scrutiny

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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

Robinson+Cole Manufacturing Law Blog

State Officials Investigate Use of Non-Competes – Manufacturers Take Notice

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

K&L Gates LLP

Having The “Are You Operating an (Illegal) Franchise System Without Knowing It?” Conversation

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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

McNees Wallace & Nurick LLC

Warranty Retail Rate Reimbursement:To Surcharge or Not to Surcharge, That is the Question

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

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