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Article: Agents Protected by State "Franchise Laws?".
- Article from:
- Mondaq Business Briefing
- Article date:
- June 24, 2006
CopyrightCOPYRIGHT 2006 Mondaq Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Since the advent of state "franchise laws" restricting the ability of franchisors to terminate their "franchisees," commissioned agents have tried to take advantage of these laws. Over time, a line of cases consistently denied commissioned agents the protection of state franchise laws on the grounds that commissioned agents were not franchisees, finding that the agents only had the authority to solicit orders but did not have the right to consummate a sale.A recent Connecticut court decision, Charts v. Nationwide Insurance Company, 397 F.Supp. 2d 357 (D. Conn. 2005), called into question this line of cases denying agents the same protections accorded franchisees. ...