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Court Watch

By Cynthia M. Klaus and Susan E. Tegt

Franchise Owner-Operator Bound to Franchise Agreement As a Non-Signatory

In Everett v. Paul Davis Restoration, Inc., Nos. 12-3407, 13-1036, 2014 U.S. App. LEXIS 21059 (7th Cir. Nov. 3, 2014), the United States Court of Appeals for the Seventh Circuit held that an owner-operator of a property damage restoration services franchise was bound to a franchise agreement that she did not execute because she received a direct benefit from the franchise agreement. Everett is just one of many cases finding that a non-signatory to a contract may be bound by its terms under various theories ' in this case, direct benefits estoppel.

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