Alert - Recent Updates on Franchise Law
National Advertising by Franchisors Does Not Automatically Establish Personal Jurisdiction in All States in Which Commercials Are Aired Hotel franchisors can rest easy knowing that at least for now, national advertising campaigns will not establish personal jurisdiction in every state in which the campaign runs. In Trei v. AMTX Hotel Corp. (d/b/a Holiday Inn) (Case No. 33,048 (June 24, 2014)), the New Mexico Court of Appeals reaffirmed that national advertising by a franchisor does not subject that franchisor to personal jurisdiction in every state in which commercials are aired. In Trei, the plaintiff was a New Mexico resident who stayed at a Holiday Inn in Amarillo, Texas. The plaintiff was injured while using exercise equipment, and filed suit against the hotel’s operator (AMTX) in...