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IFA Projects Modest Growth in 2013
The International Franchise Association (“IFA”) is projecting that the franchising industry in the United States will grow slowly in 2013, at a pace slightly below the level recorded in 2012, “yet the industry will continue to outpace growth in other business sectors.” The IFA's annual Franchise Business Economic Outlook for 2013 forecasts that the number of franchise establishments in the United States will increase by 1.4% in 2013 to 746,828, just short of the 1.5% growth in 2012. The number of jobs in franchise establishments will increase 2% in 2013 (following a gain of 2.1% in 2012) to 8.262 million. The output of franchise establishments in nominal dollars in 2013 will increase 4.3% (following a 4.9% increase in 2012) to $802 billion. The gross domestic product (“GDP”) of the franchise sector is projected to reach $472 billion, or approximately 3.4% of U.S. GDP in nominal dollars. The report can be found online at http://franchise.org/uploadedFiles/Franchise_Business_Outlook_12-17-2012.pdf.
Separately, the IFA Annual Business Leader Survey, which was conducted in November 2012, indicated that franchisors remain generally optimistic about expansion in 2013. More than 81% of franchisors said they plan to increase units this year, and 29% say they plan to increase units by 6% or more. Slightly more than 8% of franchisors said they expect to see a decline in units in 2013.
MA Court Dismisses Lawsuit Against Tesla Motors
A lawsuit filed by the Massachusetts State Automobile Dealers Association (“MSADA”) against electric vehicle manufacturer Tesla Motors Inc. was dismissed by the Norfolk County Superior Court on Dec. 31, marking the second time that a court in Massachusetts has rejected auto dealers' claims that Tesla is violating state auto dealership laws. The ruling stated that the MSADA lacked standing to sue Tesla.
Tesla has argued that its showrooms are not governed by state auto dealership laws because the final sales transaction takes place online (see FBLA, December 2012). The showrooms are designed for potential buyers to learn about the vehicles.
“We disagree with his decision,” said Robert O'Koniewski, MSADA executive vice president, in a published statement. He did not return calls from FBLA about whether the association will appeal the decision.
Dealer associations in New York and Oregon also have filed lawsuits.
IFA Projects Modest Growth in 2013
The International Franchise Association (“IFA”) is projecting that the franchising industry in the United States will grow slowly in 2013, at a pace slightly below the level recorded in 2012, “yet the industry will continue to outpace growth in other business sectors.” The IFA's annual Franchise Business Economic Outlook for 2013 forecasts that the number of franchise establishments in the United States will increase by 1.4% in 2013 to 746,828, just short of the 1.5% growth in 2012. The number of jobs in franchise establishments will increase 2% in 2013 (following a gain of 2.1% in 2012) to 8.262 million. The output of franchise establishments in nominal dollars in 2013 will increase 4.3% (following a 4.9% increase in 2012) to $802 billion. The gross domestic product (“GDP”) of the franchise sector is projected to reach $472 billion, or approximately 3.4% of U.S. GDP in nominal dollars. The report can be found online at http://franchise.org/uploadedFiles/Franchise_Business_Outlook_12-17-2012.pdf.
Separately, the IFA Annual Business Leader Survey, which was conducted in November 2012, indicated that franchisors remain generally optimistic about expansion in 2013. More than 81% of franchisors said they plan to increase units this year, and 29% say they plan to increase units by 6% or more. Slightly more than 8% of franchisors said they expect to see a decline in units in 2013.
MA Court Dismisses Lawsuit Against Tesla Motors
A lawsuit filed by the
Tesla has argued that its showrooms are not governed by state auto dealership laws because the final sales transaction takes place online (see FBLA, December 2012). The showrooms are designed for potential buyers to learn about the vehicles.
“We disagree with his decision,” said Robert O'Koniewski, MSADA executive vice president, in a published statement. He did not return calls from FBLA about whether the association will appeal the decision.
Dealer associations in
During the COVID-19 pandemic, some tenants were able to negotiate termination agreements with their landlords. But even though a landlord may agree to terminate a lease to regain control of a defaulting tenant's space without costly and lengthy litigation, typically a defaulting tenant that otherwise has no contractual right to terminate its lease will be in a much weaker bargaining position with respect to the conditions for termination.
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