Recovering Lost Profits for Franchisee’s Abandonment The U.S. District Court for the Eastern District of Missouri has recently ruled that, under Missouri law, a restaurant franchisor may recover lost profits resulting from a franchisee’s abandonment of its restaurant prior to the expiration of the franchise term. Although the court did not rule on whether the franchisor would in fact have realized future profits in this particular case, the court did hold that a factfinder could have reasonably determined that, absent the early closure by the franchisee, some revenue would have been realized from the continued operation of the restaurant. In… Read more
Motor Vehicles – California A new California law, effective January 1, 2012, prohibits motor vehicle manufacturers from obtaining or enforcing against dealers any agreement that modifies or disclaims any of the manufacturer’s duties or obligation. The law also requires that manufacturers provide notice to the California New Motor Vehicle Board any time it changes an ownership interest. Motor Vehicles – New York A recent amendment to New York’s motor vehicle dealer law prohibits franchisors from requiring that dealers make monetary contributions to any franchise program or promotion without first receiving the dealer’s written consent to participate in such program.
NLRB Rule Requires Posting of Employee Rights In August, the National Labor Relations Board issued a final rule requiring all private sector employers subject to the National Labor Relations Act to post a workplace notice informing employees of their rights under the Act. The notice informs employees of their rights to participate in union activities and engage in collective bargaining, as well as to refrain from such activities. The notice also provides examples of unlawful conduct and instructs employees on how to contact the NLRB with questions and complaints. Failure to comply with the posting rule will be deemed a… Read more