Beware of the Franchise
July 8, 2010 | Barna, Guzy & Steffen, Ltd.by Kip R. Peterson and Dainel D. Ganter, Jr. Spring 2010 In Brief Newsletter Believe it or not, your business could be a FRANCHISE. If so, failure to comply with applicable laws and regulations could result in serious consequences. Ignorance of these laws and regulations is no defense. When most people think of a franchise they think of fast-food restaurants, fitness chains and hotels. However, Minnesota law broadly defines the term “franchise,” potentially expanding the reach of the franchise laws and regulations to include legal arrangements such as license agreements, consulting agreements, and distribution agreements. It is important to note that it doesn’t matter what the parties call their relationship. If the elements of a franchise are met, the parties must comply with the franchise laws and regulations. Minnesota law defines a “franchise” as a contract or agreement between two or more persons which satisfies the following elements: (1) a franchisee is granted the right to engage in the business of offering or distributing goods or services using the franchisor’s trade name, trademark, service mark, logo or other commercial symbol or characteristics; (2) the franchisor and franchisee have a “community of interest” in the marketing of goods or services; and (3) the franchisee pays a franchise fee. Two of the three elements of…
Read MoreRisky Business: Writing Your Own Legal Documents Can Be Costly
May 6, 2010 | Barna, Guzy & Steffen, Ltd.by Thomas P. Malone Spring 2006 A client recently presented me with a document in which he had written that his employment with his corporation, which he had founded, was “at will”. He was shocked to learn this meant his corporation could fire him at will. He thought it meant he could leave whenever he wanted but he could also stay with the company for as long as he wished. Another client filed and served a Mechanic’s Lien (giving those who work on real estate a lien on that property for the value of their labor and materials) which included required language about subcontractors, but also added additional language which in essence gave the homeowner an argument that the company providing the work was not the company filing the lien. Both of these examples represent the kind of problems that can arise when people attempt to draft their own legal documents. Many people, in order to avoid legal fees, use so-called “forms” sold by commercial firms. The irony is that in so doing, they may end up costing themselves far more than they were trying to save. Lawyers can be expensive. No one knows that more than we who practice law and bill clients for our services. The modern American business environment, however,…
Read MoreNo Texting While Driving Minnesota Statute
May 6, 2010 | John T. BuchmanMinnesota Statute 169.475 makes it illegal and subjects the violator to a fine and possible jail sentence for texting, emailing, accessing a web page, or similar actions. A driver can still make a phone call or use a hands free communication device. The statute reads in part, “no person may operate a motor vehicle while using a wireless communication device to compose, read or send an electronic message, when the vehicle is in motion or a part of traffic.” There are exceptions for emergency circumstances.
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