Instructional Systems, Inc. v. Computer Curriculum Corp.

D’ANNUNZIO, J.A.D.

(temporarily assigned), dissenting.

The New Jersey Franchise Practices Act (the Act) is very strong medicine. It provides in part that a franchise may not be terminated, cancelled, or non-renewed “without good cause.” N.J.S.A. 56:10-5. The Act narrowly defines “good cause” as “failure by the franchisee to substantially comply with those requirements imposed upon him by the franchise.” Ibid. Thus, if a dealer deemed to be a franchisee under the Act is fulfilling its contractual obligations, its supplier would not be permitted to make good faith structural changes in the way it…