Franchise & Distribution Law Update - October/November 2008

10/10/2008            Attorneys            Firm News            Events





Larkin Hoffman Successfully Assists Anytime Fitness in Enforcing Noncompete Provisions in Minnesota District Court


Most franchise agreements contain covenants not to compete, by which the franchisee agrees not to compete against the franchise system it is entering, both during the term of the franchise and for a specified period of time following termination of the agreement.  These clauses are important to franchisors, as franchisors spend much time and expense training franchisees and assisting in the establishment of their business, and noncompete provisions allow franchisors to protect this investment.  Additionally, a franchisee that continues to operate a similar business after the term of the agreement would then be competing with any new franchisee in the area.




A recent decision illustrates the importance of strict compliance with all provisions of applicable franchise laws, even those that are seemingly innocuous.  While some states, including Minnesota, have adopted a “no harm, no foul” approach to franchise violations, other jurisdictions grant remedies to franchisees when their franchisor does not strictly comply with a franchise law requirement. 

Anatomy of the Sale of a Brand," and Cyndi Klaus will speak on "Vicarious Liability" at the Annual Forum.


For more information contact Joe Fittante, 952-896-3256.

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This alert is provided as a service to our clients and firm associates.  While the information provided in this publication is believed to be accurate, it is general in nature and should not be construed as legal advice.
Oct/Nov 2008


This Issue:

For more information about Larkin Hoffman’s Franchise and Distribution practice group, visit our homepage by clicking here.   


Contact our Larkin Hoffman Franchise and Distribution group members:


Email 952.896.3341


Email 952.896.3256


Email 952.896.1578


Email 952.896.3280


Cynthia M. Klaus

Email 952.896.3392


Email 952.896.1572


Pamela N Merkle

Email 952.896.3337


Meredith A Bauer 

Email 952.896.3263


Andrew F Perrin

Email 952.896.3394


Edward J Driscoll

Email 952.896.3235