The implied covenant of good faith and fair dealing, while not always a separate cause of action, depending on the jurisdiction, can be a powerful tool in a franchisee's arsenal to assert claims based on breaches of franchise agreements due to a franchisor's bad conduct.
Court Watch Franchisors Rebuff Franchisees' Claims Of Bad Behavior
The implied covenant of good faith and fair dealing, while not always a separate cause of action, depending on the jurisdiction, can be a powerful tool in a franchisee's arsenal to assert claims based on breaches of franchise agreements due to a franchisor's bad conduct. However, recent cases coming out of New York and Michigan demonstrate just how difficult it can be for a franchisee to make out a claim premised on the franchisor's poor behavior.
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