The Courts’ Shifting View On Tying Arrangements

Law360, New York (November 25, 2013, 1:12 PM EST) -- Franchising has become a popular and lucrative business model across many types of industries, from food to technology. Historically, the courts have viewed franchise tying arrangements as anti-competitive. Case law demonstrates the hard-lined per se illegality with which they have labeled such agreements. Yet, recent case law reflects a shift in scrutiny and provides franchisors with a sense that the courts may eventually choose to adopt a test that is more in line with a rule-of-reason approach.

Franchisors frequently place tying arrangements within franchise contracts. “Tying”...
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