29 F.3d 383 (8th Cir. 1994), 93-2606, Holiday Inns Franchising, Inc. v. Branstad

Docket Nº:93-2606, 93-2607, 93-2609.
Citation:29 F.3d 383
Party Name:HOLIDAY INNS FRANCHISING, INC., and Holiday Inns, Inc., Appellees, v. Terry BRANSTAD, Governor of the State of Iowa, Appellant, John Q. Hammons and Omaha Hotel, Inc., Defendants, Iowa Franchisee Association, Intervenor. MCDONALD'S CORPORATION, Appellee, v. Steven NELSON and Tass Enterprises, Inc., Defendants, MCDONALD'S CORPORATION, Appellee, v. St
Case Date:July 07, 1994
Court:United States Courts of Appeals, Court of Appeals for the Eighth Circuit
 
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Page 383

29 F.3d 383 (8th Cir. 1994)

HOLIDAY INNS FRANCHISING, INC., and Holiday Inns, Inc., Appellees,

v.

Terry BRANSTAD, Governor of the State of Iowa, Appellant,

John Q. Hammons and Omaha Hotel, Inc., Defendants,

Iowa Franchisee Association, Intervenor.

MCDONALD'S CORPORATION, Appellee,

v.

Steven NELSON and Tass Enterprises, Inc., Defendants,

MCDONALD'S CORPORATION, Appellee,

v.

Steven NELSON and Tass Enterprises, Inc., Defendants,

State of Iowa, Intervenor,

Iowa Franchisee Association, Appellant.

State of Iowa, Appellant,

Iowa Franchisee Association, Intervenor.

HOLIDAY INNS FRANCHISING, INC., and Holiday Inns, Inc., Appellees,

v.

Terry BRANSTAD, Governor of the State of Iowa; John Q.

Hammons; and Omaha Hotel, Inc., Defendants,

Iowa Franchisee Association, Appellant.

Nos. 93-2606, 93-2607, 93-2609.

United States Court of Appeals, Eighth Circuit

July 7, 1994

Submitted Jan. 12, 1994.

Page 384

Mark Hunacek, Asst. Atty. Gen., Ames, IA, argued, for Branstad.

Brent R. Appel, Des Moines, IA, argued, for Iowa Franchisee Ass'n.

Alan Silberman, Chicago, IL, argued, for McDonald's Corp.

John G. Parker, Atlanta, GA, argued, for Holiday Inns; Robert T. Joseph, William T. Barker, Jill A. Thompson, Ronald T. Coleman, Janet L. Kishbaugh and Edward W. Remsburg, on briefs, for appellees.

Before BEAM and MORRIS SHEPPARD ARNOLD, Circuit Judges, and STROM, [*] District Judge.

MORRIS SHEPPARD ARNOLD, Circuit Judge.

These were consolidated actions for summary judgment claiming that application of the Iowa Franchise Act, see Iowa Code Ann. Secs. 523H.1-523H.17, to existing franchise agreements was unconstitutional under the Contract Clause of both the United States and Iowa Constitutions. Section 2 of the Act expressly extends its effects to existing franchise arrangements. Plaintiffs pointed to several provisions of the Act that they believed would substantially and thus unconstitutionally impair the obligations owed by their franchisees under their current licensing arrangements. Those provisions concern principally the circumstances under which franchisees can transfer their franchises without the franchisor's consent and the right of the franchisor to terminate or refuse to renew the agreement. The district court, in a detailed and well-considered opinion, held that the...

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