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23901 Calabasas Road Suite 2013 Calabasas, California 91302 Phone: (818) 224-3900 Fax: (818) 224-3911 Home Page Firm Resume Attorneys Franchise Articles Internet Law Entertainment Law Legal Links  Philip A. Kramer |
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Franchising Business LitigationEntertainmentKramer & Kaslow is dedicated to providing quality legal services in a timely and cost effective manner. The firm engages in a sophisticated business practice with an emphasis on franchise law and business litigation. For more information refer to our firm resume or contact Philip A. Kramer . Franchise Law Developments in Franchise Law Kramer & Kaslow represents and advises franchisees and franchisors on wide variety of matters. The Franchise Department's previously published newsletter identified some developments in this area of the law. Index of prior articles. Kramer & Kaslow Argue Before Ninth Circuit Ninth Circuit Rules Forum-Selection Clauses Are Unenforceable by California Franchisors Kramer & Kaslow attorneys successfully argued before the Ninth Circuit in the precedent setting case of Jones v. GNC Franchising, Inc. At issue in Jones was the enforceability of the forum-selection clause in the parties' written franchise agreement. The clause required Jones to bring all actions in Pennsylvania, home of GNC's corporate offices. But, Jones, a California franchisee, brought suit against GNC in California state court. GNC removed the case to federal court and, relying on the forum-selection clause, moved to dismiss the action or transfer venue to Pennsylvania. Jones successfully argued that the forum-selection clause conflicted with California's public policy, and the District Court denied GNC's motions. The Ninth Circuit affirmed. Section 20040.5 of California's Business and Professions Code provides that forum-selection clauses in franchise agreements are void. In addition to the express language of the statute, the legislative history establishes a strong public policy of California to protect California franchisees. Therefore, the forum-selection clause in Jones' franchise agreement, requiring him to litigate in an out-of-state forum, is against public policy and is unenforceable. Full-text of the opinion in Jones v. GNC Franchising, Inc. (from the Ninth Circuit's website). |
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