Kelly BROUSSARD; Jim Stephens; Mark Zuckerman; Arnold Fischthal; John Hagar; Vincent Matera; Denis Wickham; Mary Ann Wickham; Kenex Corporation; Ralph Yarusso, Plaintiffs-Appellees,
v.
MEINEKE DISCOUNT MUFFLER SHOPS, INCORPORATED; New Horizons Advertising, Incorporated; GKN Parts Industries; GKN, plc; Ronald Smythe; Gene Zhiss; Ted Pearce, Defendants-Appellants,
and
Michigan Franchisees, which consists of: Peter D. Beyer, Ronald S. Slack, Susan I. Slack, Sherman J. Radford, Jayne Radford, William J. Varney, Sr., William J. Varney, Jr., Sher-Jay and Sons, Incorporated, and M.A.T.M., Incorporated, Defendant.
ATL International, Incorporated; Blimpie International, Incorporated; Burger King Corporation; Doctor's Associates, Incorporated; Foodmaker, Incorporated; Golden Corral Corporation; Hardee's Food Systems, Inc.; International Dairy Queen, Incorporated; McDonald's Corporation; Mobil Oil Corporation; The Southland Corporation; Secretary of Commerce of the State of North Carolina; American Council of Life Insurance; Securities Industry Association; British American Business Council of North Carolina, Incorporated; American Association of Franchisees and Dealers; American Franchisee Association; Sal Lobello; Goodwin Management Group, Inc.; Steven D. Loye Family Limited Partnership; PS & F Enterprises Inc.; Stephen Parascondola; Robert Ott, Amici Curiae.
Kelly BROUSSARD; Jim Stephens; Mark Zuckerman; Arnold Fischthal; John Hagar; Vincent Matera; Denis Wickham; Mary Ann Wickham; Kenex Corporation; Ralph Yarusso, Plaintiffs-Appellants,
v.
MEINEKE DISCOUNT MUFFLER SHOPS, INCORPORATED; New Horizons Advertising, Incorporated; GKN Parts Industries; GKN, plc; Ronald Smythe; Gene Zhiss; Ted Pearce, Defendants-Appellees,
and
Michigan Franchisees, which consists of: Peter D. Beyer, Ronald S. Slack, Susan I. Slack, Sherman J. Radford, Jayne Radford, William J. Varney, Sr., William J. Varney, Jr., Sher-Jay and Sons, Incorporated, and M.A.T.M., Incorporated, Defendant.
ATL International, Incorporated; Blimpie International, Incorporated; Burger King Corporation; Doctor's Associates, Incorporated; Foodmaker, Incorporated; Golden Corral Corporation; Hardee's Food Systems, Inc.; International Dairy Queen, Incorporated; McDonald's Corporation; Mobil Oil Corporation; The Southland Corporation; Secretary of Commerce of the State of North Carolina; American Council of Life Insurance; Securities Industry Association; British American Business Council of North Carolina, Incorporated; American Association of Franchisees and Dealers; American Franchisee Association; Sal Lobello; Robert Ott; Stephen Parascondola; PS & F Enterprises Inc.; Steven D. Loye Family Limited Partnership; Goodwin Management Group, Inc., Amici Curiae.
United States Court of Appeals, Fourth Circuit.https://leagle.com/images/logo.png
Argued May 5, 1998.
Decided August 19, 1998.
Attorney(s) appearing for the Case
ARGUED: Kenneth Winston Starr, Kirkland & Ellis, Washington, DC, for Appellants. Charles Justin Cooper, Cooper & Carvin, P.L.L.C., Washington, DC, for Appellees. ON BRIEF: Steven G. Bradbury, Christopher Landau, Adam G. Ciongoli, Brett M. Kavanaugh, Kirkland & Ellis, Washington, DC; E. Osborne Ayscue, Jr., Catherine E. Thompson, Thomas D. Myrick, Corby C. Anderson, Smith, Helms, Mulliss & Moore, L.L.P., Charlotte, North Carolina, for Appellants. Michael A. Carvin, Michael W. Kirk, R. Ted Cruz, Cooper & Carvin, P.L.L.C.; James J. McCabe, John J. Soroko, Wayne A. Mack, Mark B. Schoeller, Duane, Morris & Heckscher, Philadelphia, Pennsylvania; Thomas J. Ashcraft, Charlotte, North Carolina, for Appellees. Theodore B. Olson, Theodore J. Boutrous, Jr., Sean E. Andrussier, Gibson, Dunn & Crutcher, L.L.P., Washington, DC, for Amici Curiae ATL International, et al. Andrew A. Vanore, Jr., North Carolina Department of Justice, Raleigh, North Carolina, for Amicus Curiae Secretary of Commerce. Phillip E. Stano, American Council of Life Insurance, Washington, DC; Stuart J. Kaswell, Fredda L. Plesser, Securities Industry Association, New York City, for Amici Curiae American Council of Life Insurance, et al. Edgar Love, III, Kiran H. Mehta, Stanford D. Baird, Kennedy, Covington, Lobdell & Hickman, L.L.P., Charlotte, North Carolina, for Amicus Curiae British American Business Council. Mario L. Herman, Washington, DC; J. Michael Dady, Dady & Garner, P.A., Minneapolis, MN, for Amici Curiae Association of Franchises, et al. John K. Bush, Janet P. Jakubowicz, Greenebaum, Doll & McDonald, P.L.C.C., Louisville, Kentucky, for Amici Curiae Lobello, et al.
Before WILKINSON, Chief Judge, and ERVIN and MICHAEL, Circuit Judges.
United States Court of Appeals, Fourth Circuit.
Reversed and remanded by published opinion. Chief Judge WILKINSON wrote the opinion, in which Judge ERVIN and Judge MICHAEL joined.
OPINION
WILKINSON, Chief Judge:
This case is a study in the tensions that can beset the franchisor-franchisee relationship. Ten owners of Meineke Discount Muffler franchises sued franchisor Meineke Discount Muffler Shops, Inc. ("Meineke"), Meineke's in-house advertising agency New Horizons Advertising, Inc. ("New Horizons...
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