Franchise (& Distribution) Currents

The franchisee's principal filed suit in the U.S. District Court for the District of New Hampshire, seeking a declaratory judgment that he was not bound by the arbitration provisions because he was not a party in his personal capacity to either of the agreements. Additionally, there was no evidence that the franchisee's principal had personally guaranteed the franchisee's obligations. [...]the court held that the franchisee's principal was not bound by the arbitration provisions. The franchisor then filed a complaint in the U.S. District Court for the District of New Jersey seeking a preliminary injunction preventing the franchisee from operating the franchised stores and asserted a claim for trademark infringement. [...]because the NJFPA was preempted, the court vacated the preliminary injuncti on issued by the Chancery Court. Apr. 28, 2016) The U.S. District Court for the District of Minnesota upheld the common law principle of freedom of contract and rejected Renaissance Marble & Tile Inc.'s argument that a provision of Iowa franchise law (Iowa Code § 523H.3) invalidated the forum selection clause and waiver to object or defend found in the venue provision in the parties' dealership agreement. According to the Iowa Code, proceedings may of section 7.5 was unreasonable given the plain language of the contract as a whole and the context.