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The Franchise Memorandum

The Franchise Memorandum

Posts in Definition of a Franchise.

A federal court in Minnesota recently granted summary judgment to a manufacturer on all claims brought against it by its distributor, holding that optional equipment purchases cannot constitute a franchise fee under the Minnesota Franchise Act. Louis DeGidio, Inc. v. Indus. Combustion, Inc., 2021 WL 6127865 (D. Minn. Dec. 28, 2021).

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In Gabana Gulf Distrib. v. Gap Int’l Sales Inc., 2007 WL 4145105 (N.D. Cal. Jan. 9, 2008), a federal district court in California confronted the issue of what constitutes a franchise, finding that an International Sales Program Distributor License Agreement (“ISP Agreement”) between distributors and defendants Gap International Sales, The Gap, Banana Republic, and Old Navy (collectively “GAP”) was not subject to the California Franchise Relations Act because the distributors’ operation was not substantially associated with GAP’s trademarks or other ...

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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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