Franchisee 101: No Excuse for Late Notice

The U.S. Court of Appeals for the Fifth Circuit reversed a trial court judgment against a Texas franchisor, finding the lower court erred in excusing an untimely renewal notice of area development agreements. The Court held a franchise developer may not invalidate plain terms of an option agreement when the developer failed to timely exercise the option. The developer Clairday, entered into two area development agreements. Under the agreements Clairday would recruit and develop franchises in an...
By: Lewitt Hackman

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