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Features
Highlights of the latest franchising news from around the country.
Highlights of the latest franchising cases from around the country.
Easy-to-read listing of everything contained in this issue.
Decided recently by Westchester Supreme Court, <i>Mamaroneck Beach & Yacht Club, Inc. v. Fraioli</i> raises a much litigated issue in New York: When can a municipality apply a newly enacted ordinance to a pending application by a developer?
Sona Laser Centers and Sona MedSpas is locked in an increasingly bitter dispute with some of its original franchisees, involving not only typical franchise issues but also the franchisees' allegations that at least one of the services they offer to customers, a laser treatment for hair removal, does not work. While franchisees have received considerable favorable publicity in the fight to date, Sona executives say that the actions of the franchisees belie some of their complaints, and Sona remains committed to building a national chain of spas.
Features
Franchisors that own intellectual property (patents, copyrights, or trademarks) for use as part of the franchise system have long been confronted with an unfortunate and misguided presumption that their intellectual property rights automatically gave them market power — an essential element of many antitrust claims — in the system's patented, copyrighted, or trademarked products and services. From an antitrust perspective, this presumption, although rebuttable, created a significant hurdle for franchisors accused of an illegal tying arrangement — which requires, as a preliminary element, proof of market power in the allegedly tying product (often the franchise itself).
