Franchisee's Wrongful Termination Claim Rejected for Failure to Obtain Franchisor Consent to its Franchise Purchase
In a recent case in the United States District Court for the Eastern District of Wisconsin, a federal court reversed its own initial decision in which it had upheld a franchisee's wrongful termination claim against its franchisor.
Tex. Ujoints, LLC v. Dana Holding Corp., 2015 U.S. Dist. LEXIS 70468 (E.D. Wis., May 30, 2015). Granting a motion for reconsideration, the District Court held that the plaintiff was not a "franchisee' under the relevant franchise law because, although the plaintiff had purchased the 'franchise rights to distribute' from a former franchisee, it had done so without first obtaining the consent of the franchisor for the purchase...