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Court Watch

By Charles Miller, Daryl A. Hart and Griffith C. Towle
December 05, 2005

Ninth Circuit Addresses Indirect Franchise Fees

On Sept. 16, 2005, the U.S. Court of Appeals for the Ninth Circuit issued a not for publication opinion affirming a lower court's grant of summary judgment in favor of a car rental company against the operator of its rental facility in Long Beach, CA. In Adees Corporation v. Avis Rent A Car Systems, Inc. (Case No. 03-57227) the court considered de novo the decision of the U.S. District Court, Central District of California, finding that the termination of the agreement between the parties did not violate the California Franchise Relations Act (“CFRA”), California Business and Professions Code Sections 20000 through 20043, since the arrangement was not a franchise.

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