Preface

xi

PREFACE

Franchising forms a major sector of the economy, and businesses

engaged in selling goods and services through franchise systems

routinely confront advertising, pricing, distribution, and other issues

requiring an understanding of the antitrust laws. This volume attempts to

give the practicing lawyer a detailed overview of the federal antitrust

laws as they apply to franchising.

In 2006, the Section of Antitrust Law of the American Bar

Association published a general survey of the law and economics of

product distribution, Antitrust Law and Economics of Product

Distribution. The present volume, published jointly by the American Bar

Association’s Section of Antitrust Law and Forum on Franchising,

augments that publication by focusing specifically on antitrust issues

facing franchisors and franchisees, whether operating under a business

format or product distribution franchise.

The impetus for this project came from Steven M. Goldman and

Robert T. Joseph during the latter’s tenure in 2002-03 as Chair of the

Section of Antitrust Law. Mr. Goldman, Chair of the Forum on

Franchising in 2004-06, has monitored the project from its inception and

provided invaluable suggestions about how best to assemble a handbook

that would prove useful for the franchise and distribution law

practitioner.

The book is the result of long hours and hard work by a number of

lawyers with specialized expertise in antitrust and franchise law, and it is

organized by issue—pricing and advertising, customer and territorial

restrictions, exclusive dealing, purchasing constraints, and joint

franchisee action—to enhance its usefulness to practitioners.

Chapter I offers an introduction to and overview of the antitrust laws.

Chapter II looks at pricing issues, from resale price maintenance, to

cooperative advertising, to price discrimination.

Chapter III considers territorial and customer restrictions.

Chapter IV reviews exclusive dealing and exclusive appointments.

Chapter V addresses tying issues and vendor rebates.

Chapter VI provides an overview of the antitrust law applicable to

joint conduct by franchisees.

The book benefitted from many fine drafters, including Barbara O.

Bruckmann, Thomas J. Collin, Steven B. Feirman, Diane Green-Kelly,

Tanja E. Hens, Michael K. Lindsey, Matthew Moloshok, Samer M.

Musallam, Thomas W. Queen, Joshua S. Ridout, and Eugene F. Zelek,

Jr.