Wednesday, June 18, 2008
Cash-for-Gas Bill Becomes Law Despite Prohibitions in Franchise Agreements
A recent bill allowing gasoline stations to offer discounts to customers who pay in cash demonstrates that Franchise Agreements may not always be as iron clad as the franchisor intended. According to this article, "Gov. M. Jodi Rell on Tuesday signed a bill allowing franchisees of major oil companies to offer cash discounts to customers, even if their franchise agreements prohibit it." The bill does not mandate this action for gas stations, but it allows them to do this as an option.