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28 Franchise L.J. 1 (2008-2009)

handle is hein.journals/fchlj28 and id is 1 raw text is: FRANcHIsE LAW JouRNAL AMERICAN BAR ASSOCIATION SM QUARTERLY JOURNAL OF THE FORUM ON FRANCHISING VOLUME 28, NUMBER I • SUMMER 2008 In This Issue Deep in the Heart of Franchising ..................... 2 DEBORAH S. COLDWELL T he Forum on Franchising Law's raison d'dtre is to provide the preeminent forum to study and discuss the legal aspects of franchising. Peter Klarfeld and Joe Fittante, co-chairs of the 2008 Annual Forum, highlight the proposed line-up of not-to- be missed speakers. See also pages 66-67 in this issue. Due Diligence in Acquiring Franchise Companies ......................................... 3 AMY CHENG AND FREDRIC A. COHEN T he authors suggest how to negotiate a purchase agree- ment that provides the protection necessary to reduce the inherent risks involved in acquiring a franchise company. New Climate for Franchise Tying Claims ...... I I ARTHUR I. CANTOR AND PETER J. KLARFELD or more than thirty-five years, the potential implications of Siegel v. Chicken Delight have nagged at franchisors that require their franchiseeg to purchase items only from the fran- chisor or an affiliate. In a case that received scant attention from the franchise bar, the Supreme Court effectively elimi- nated the cornerstone of the Siegel doctrine. May a FranchisorVeto a Franchisee's Assumption of a Franchise Agreement in Bankruptcy? .......... 16 PAUL J. BATTISTA, NINA GREENE, AND GLENN D. MOSES xecutory contracts, which include franchise agreements, are the most valuable assets of a debtor and play a vital role in chapter 11 cases. Depending on the jurisdiction, the franchisor may have substantial leverage in a reorganiza- tion proceeding. FTC Releases Franchise Rule Compliance Guide ........................................... 20 JAN S. GILBERT AND SUZANNE A. LOONAM n Friday, May 9, 2008, the FTC released its long-an- ticipated Franchise Rule Compliance Guide, which provides clarification and new insights to some of the issues raised by the Franchise Rule. This is must reading for fran- chise practitioners. The Modern Myth of the Vulnerable Franchisee ...................................... 23 WILLIAM L. KILLION T he author traces the history of franchising and two myths that often negatively affect franchising case law. The first is that franchisees are generally naive and unsophisticated in comparison to franchisors. The second, and related, myth is that there is a gross bargaining disparity between the franchisor and franchisee resulting in one-sided franchise agreements. The author turns to the history of franchising to refute what he calls the modern myth of the vulnerable franchisee. Currents in Franchise and Distribution Law ...... 34 DAVID A. BEYER, DAVID M. BYERS, AND JASON J. STOVER C urrent cases affecting franchise and distribution sys- tems are discussed. Franchise Law Journal (ISSN: 8756-7962) is published quar- terly, by season by the American Bar Association Forum on Fran- chising, 321 North Clark Street, Chicago, Illinois 60654-7598. Franchise Law Journal seeks to inform and educate members of the bar by publishing articles, columns, and reviews concerning legal developments relevant to franchising as a method of distrib- uting products and services. Franchise Law Journal is indexed in the Current Law Index under the citation FRANCHISING. Requests for permission to reproduce or republish any material from the Franchise Law Journal should be sent to copyright@abanet.org. Address corrections should be sent to coa@abanet.org. The opinions expressed in the articles presented in Franchise Law Journal are those of the authors and shall not be construed to represent the policies of the American Bar Association and the Forum on Franchising. Copyright © 2008 American Bar Association. Produced by ABA Publishing.

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