TAILIEUCHUNG - Project Leadership_3

Tham khảo tài liệu 'project leadership_3', tài chính - ngân hàng, tài chính doanh nghiệp phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | 48 FRANCHISING AS A GROWTH STRATEGY chisor s consent. The court stated that there was no doubt that requiring a franchisee in the freight forwarding business to use other franchisees in the system for deliveries is a material provision of the franchise agreement. In Great Clips Inc. v. Levine Civ. No. 3-90-211 Trade Cases 1992-93 Bus. Fran. Guide 70 930 D. Minn. June 16 1993 a franchisee was permanently enjoined from continuing to violate its franchise agreement by departing from the franchisor s single-price eleven-dollar haircut policy. In another case Novus de Quebec v. Novus Franchising Inc. Civ. No. 4-95-702 Trade Cases 1995-96 Bus. Fran. Guide 10 823 D. Minn. Dec. 5 1995 an auto glass repair franchisor terminated its area developer for failure to comply with the uniformity and quality standards in the franchise agreement and for failure to cooperate with an audit inspection as required under the agreement. The area developer also had awarded franchises to franchisees of competing franchise systems after the franchisor had already rejected them as suitable candidates. The district court rejected the area developer s request for an injunction to prevent termination of the license citing the area developer s total disregard for the spirit and philosophy behind the Novus System and for the goodwill associated with the Novus marks and System. Another case where a franchisee s noncompliance with the franchisor s system was determined to cause irreparable harm to the franchise system and its marks was Burger King Corp. v. Stephens 1989 WL 147557 . Pa. where the court granted Burger King s request for an injunction to force a franchisee to cease operating where the franchisee had violated Burger King s operating standards and Burger King was thus unable to insure the maintenance of high quality service that the trademarks represented thereby causing irreparable injury to the franchisor s business reputation and goodwill. Other examples where courts have protected

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