Allstate New Jersey Wins Lawsuit Asking Whether Agents Are Franchisees

Insurance News Net:

A New Jersey state court has sided with Allstate New Jersey Insurance Co. in a lawsuit questioning whether exclusive agents should be considered franchisees of the company. The court determined agents are not franchisees under New Jersey law and therefore, Allstate had done nothing wrong when it terminated its agreement with the agents.

Last year, three agents filed suit against the company, seeking to prevent the termination of their agency agreements for failing to meet certain business objectives.The agents alleged they had franchise relationships with Allstate New Jersey and were protected under the New Jersey Franchise Practices Act. Read more.