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C. GROUNDS FOR TERMINATION  :  1. § 2802(b)(2)(A) Failure to comply with reasonable and materially significant provision
  • Kane v. Mobil Oil Corp., No 87-4513(SSB)(D.N.J. 12-10-87) Slip Opinion; CCH BFG 9186 (D.N.J. 3-28-88)

    Franchisee granted preliminary injunction upon reconsideration. Held that franchisee has the burden of proof of a threat of wrongful termination when seeking injunctive relief. Reasonableness and materiality of a provision are not to be determined by an objective standard; 24-hour operation requirement is reasonable and of material significance and hardship to franchisee is not relevant to court's analysis. Franchisee complained about difficulty in complying with the hours-of-operation provision. Franchisor was denied summary judgment because there was a disputed issue of material fact whether his failure to operate 24 hours a day was "beyond reasonable control."


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