Coast to Coast Stores, Inc. v. Gruschus

Plaintiff Coast to Coast Stores (Central Organization), Inc.,1 a franchisor, appeals a trial court decision requiring plaintiff to purchase the inventory of defendant franchisee's business.

*148The principal issue presented by this appeal is whether a franchise is terminated when the franchisee's business is suspended by the franchisor's exercising its right under a security agreement to repossess the franchisee's inventory. We hold that repossession of inventory by the franchisor does not, on the facts in this case, constitute termination of the franchise. The trial court therefore erred by…