Franchise Law Update

In periods of difficult economic conditions, many franchisors may elect to shed nonperforming or underperforming product lines. Such actions raise risks for franchisors and franchisees alike, especially when the conduct results in the elimination of a branded product that was the subject of a franchise agreement or a franchise relationship. In its recent decision of FMS, Inc. v. Volvo Construction Equipment North America, Inc ., slip op., Nos. 07-1896, 07-2016 (7th Cir. March 4, 2009), the Seventh Circuit Court of Appeals tackles this timely issue.