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The Franchise Memorandum

Posts from April 2020 - Issue 252.

After Ralph Lauren Corporation terminated a dealer of 14 years, Victoria Card, Card sued Ralph Lauren in California state court for, among other things, breach of contract, breach of the implied covenant of good faith and fair dealing, misrepresentation, intentional interference with economic advantage, unfair competition under California law, violation of the Robinson-Patman Act, and a RICO Act violation. The case was removed to federal court in California, and that court recently ruled on Ralph Lauren’s motion to dismiss Card’s third amended complaint. Card v. Ralph ...

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A federal court in Minnesota recently denied General Motors’ motion to dismiss a lawsuit brought by one of its dealers, Lupient Chevrolet. Lupient Chevrolet, Inc. v. General Motors LLC, 2020 WL 335996 (D. Minn. Jan. 21, 2020). Lupient operates a Chevrolet motor vehicle dealership. Under the parties’ dealership agreement, Lupient is required to maintain a certain level of sales performance, which is measured by comparing Lupient’s sales to the sales opportunities within the geographical areas assigned to Lupient. The agreement also prohibits GM from unreasonably ...

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The FTC and the DOJ Antitrust Division issued a joint statement that details expedited antitrust procedures and provides guidance for collaborations of businesses working to protect the health and safety of the American people during the COVID-19 pandemic. The full text of the joint statement is available here. The joint statement recognizes that health care facilities may need to work together to provide resources and services to assist patients, consumers, and communities affected by the COVID19 pandemic, and that other businesses may need to temporarily combine production ...

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Most franchise registration states (including the exemption notice states of Florida and Utah) have adopted, formally or informally, COVID-19 accommodations relating to franchise and exemption filings, and the offer and sale of franchises.

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On March 21, 2020, Indiana’s governor signed into law HB 1049, which amends Indiana’s franchise disclosure law to define changes requiring an amendment to franchise registrations and FDDs. Effective July 1, 2020, franchisors must file amendments to their FDD no later than 30 days after the occurrence of a material change in the information contained in the FDD. The statute enumerates various events that constitute a material change, including: (i) the termination, closing, failure to renew, or reacquisition of 10% of all franchises in a franchisor’s system, or 10% of the ...

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Franchisors and distributors across the country are confronting a myriad of challenges and pressures related to the spread of COVID-19.

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Posted in Arbitration

A putative antitrust class action against a shock absorber manufacturer may proceed in federal court, the Sixth Circuit Court of Appeals recently held, affirming denial of the manufacturer’s motion to compel arbitration. In re: Auto. Parts Antitrust Litig., 951 F.3d 377 (6th Cir. 2020). This dispute arose after retailers of automotive parts brought antitrust claims against KYB Corporation and KYB Americas Corporation. KYB manufactures car parts and distributes them through its subsidiary KYB Americas, which contracts with a network of retailers who then resell the parts to ...

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About this Publication

The Franchise Memorandum is a collection of postings on summaries of recent legal developments of interest to franchisors brought to you by Lathrop GPM LLP. 

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