Franchises and The Laws that Govern Them Essay Example | Topics and Well Written Essays - 500 words

Franchises and The Laws that Govern Them - Essay Example Stuller alleges Defendants breached the implied covenant of good faith and fair dealing by attempting to force Stuller to adopt the policy. Both Defendants filed motions to dismiss, denying SNS Operations’ motion to dismiss on the ground that SNS Operations had assigned the Agreements to SNS Enterprises. Stuller did not object to the Report and Recommendation’s characterization of Count II as a breach of contract claim. To state a breach of contract claim under Illinois law, a plaintiff must allege the existence of a contract, substantial performance by the plaintiff, a breach by the defendant, and damages resulting there from. The court found the defendants’ evidence only showed future damages that might be incurred, and, therefore, found the defendants failed to meet their burden of showing actual damages. The court concluded the counterclaim was premature and dismissed it without prejudice. (2) â€Å"Protect each prospective franchisee and the franchisor by providing a better understanding of the business and the legal relationship† between them. 815 ILCS 705/2(2). A private right of action is by section 26 of the IFDA: â€Å"Any person who offers, sells, terminates, or fails to renew a franchise in violation of this Act shall be liable to the franchisee who may sue for damages caused thereby.† 815 ILCS 705/26. Moreover, a franchisee may sue for rescission for a violation of sections 5, 6, 10, 11, or 15 of the IFDA. 815 ILCS 705/26. Not only Stuller alleged untrue statement material was made Stuller also alleged was violated material omission absence language Defendants set prices employment device scheme artifice defraud engagement act practice course business operate fraud deceit Stuller Therefore, Count III states a claim for relief under the IFDA. IT IS THEREFORE ORDERED that the Report, and Recommendation (d/e 33)