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State law may prohibit termination without good cause

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State law may prohibit termination without “good cause.” What are the various issues that are covered in a franchise contract? The Franchise Contract includes: Payment for the Franchise:  lump sum, initial fee Business Premises:  leased of purchased Location of the Franchise Quality Control by Franchisor good will, reputation and trademark value.  Courts will not question Franchisor’s strict  supervision but Franchisor may be liable for torts of agents. Pricing Arrangements:   franchisor cannot set prices of goods sold How is a franchise terminated? - Generally franchise agreements are more favorable towards the franchisor.  - In the event of breach, franchisee may have the opportunity to “cure” an ordinary  breach within a period of time to prevent termination Wrongful Termination.
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Importance of Good Faith  and Fair Dealing. Courts usually try to balance the rights of both parties. If franchisor arbitrarily or unfairly  terminates a franchise, the franchisee will be provided with a remedy for wrongful  termination. If franchisor’s decision to terminate was made in the normal course of the franchisor’s  business operations, and reasonable notice of termination was given to the franchisee,  most  courts will not consider the termination wrongful. Partnerships What is a partnership? Created when two or more persons (including corporations) agree to carry on business  for profit as co-owners with equal right to manage and share profits  (UPA). How is a partnership formed? Under the UPA there is a  presumption  of a partnership if:  A sharing of profits or losses.  A joint ownership of the business. An equal right to be involved in the management of the business.  The Partnership Agreement can be written or oral, unless the Statute of Frauds  requires a written agreement.  Duration  of Partnership. Partnership for a Term.  Partnership at Will.  Partnership by Estoppel Occurs when a person who is not a partner holds himself out to third parties and the  third party relies to her detriment. In this case the “nonpartner” is considered an agent  whose acts are binding on the partnership. How does a partnership operate?
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Rights of Partners :  In the absence of a partnership agreement (oral or written) state  statutes govern the partner rights.  Management:  equal, each one vote, majority wins; need unanimous consent for some  actions. Interest  in the Partnership : equal profits, losses shared as profits shared   Compensation: none.  Inspection of the Books:  always and also by rep. of deceased partner .
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