Question: To establish that a business is a franchisee qualifying for

To establish that a business is a “franchisee” qualifying for protection under the Illinois Franchise Disclosure Act, the business must demonstrate that it paid a franchise fee either
directly or indirectly to the “franchisor” to enter the business. To-Am Equipment Company believed it had paid an implied fee in excess of $500 to enter the forklift business as a dealer for Mitsubishi-Caterpillar Forklift of America (MCFA) when it paid $1,658 for service manuals, which MCFA had commanded it to possess. MCFA denied that it had charged To-Am a franchise fee and asserted that it was not obligated to To-Am under the state Franchise Disclosure Act. Decide. [To-Am Equipment Co. v. Mitsubishi-Caterpillar Forklift of America, 853 Supp. 987 (N.D. Ill.)]

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