A recent decision of the Federal Court, Trial Division in Little Brown Box Pizza, LLC v. DJB (2024 FC 1592) provides guidance on the question of special circumstances that can excuse an absence of trademark use in Section 45/summary cancellation proceedings. The Court’s analysis and findings should be particularly useful to U.S./non-Canadian brand owners looking … Continue Reading
During the life of a franchise system, franchisees are often the source of new product and service offering ideas. Franchisors often find that some of the best-selling products are created by franchisees. For example, some of the most popular sandwiches (including the Big Mac, Filet-o-Fish, and Egg McMuffin) at McDonald’s were created by franchisees. Indeed, … Continue Reading
California recently made new amendments to its franchise law, California Franchise Relations Act (“CFRA”) (Cal. Bus. & Prof. Code §20000 et seq.), which regulates franchisee-franchisor relationships. These amendments, which will affect franchise agreements entered into or renewed after January 1, 2016, substantially change the laws in that state dealing with franchise terminations and renewals. The … Continue Reading
A franchisee who sued his franchisor for fraud learned the hard way why it’s important to read the Franchise Disclosure Document, cover to cover, before buying a franchise. A California franchisee of Big O Tires sued the company in California court, alleging that Big O defrauded him when it sold him a franchise. The California … Continue Reading
One of the most common provisions in franchise agreements is the “forum-selection” clause. Under these provisions, the parties agree that any lawsuit filed by either one of the parties will be brought only in a court in a specified city and state. The chosen court will almost always be in the city where the franchisor … Continue Reading
Are you operating a franchise system without realizing it? If you are licensing to others the right to use your trademark for a fee, the answer could be yes. Under both federal and some state laws, a business relationship may be a franchise — even if neither of the parties intended to create one. At … Continue Reading
