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The Franchise Memorandum

The Franchise Memorandum

Posts in Sales Representatives.

The United States District Court for the Northern District of Alabama recently held that Alabama’s Sales Representative Commission Contract Act, which requires timely payment of commissions to terminated sales representatives, did not apply to a franchise development agent. The plaintiff in Johnson v. Mossy Oak Properties, Inc., 2012 U.S. Dist. LEXIS 167605 (N.D. Ala. Nov. 27, 2012), was a terminated development agent for a real estate franchisor. As a development agent, Johnson was involved in the training and servicing of Mossy Oak franchisees in a specified territory ...

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In Kamco Industrial Sales, Inc. v. Lovejoy, Inc., 2011 U.S. Dist. LEXIS 25240 (E.D. Pa. Mar. 10, 2011), a commissioned sales representative sued the manufacturer for whom it sold products, alleging breach of contract and breach of the implied covenant of good faith and fair dealing. The sales representative agreement at issue required the plaintiff to sell the defendant’s power transmission products on an exclusive basis. The agreement term automatically renewed on a year to year basis, unless either party gave 60 days’ notice of nonrenewal. The agreement also contained a ...

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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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