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The New Jersey Franchise Practices Act prohibits termination or non-renewal of a defined franchise except for “good cause,” which is defined by the failure of a franchisee to perform the material obligations of the franchise agreement. Because the act basically requires material breach for termination or non-renewal, many of the disputes in franchise cases under the act challenge the existence of a “franchise” as defined by the act. In the recent case of McPeak v. S-L Distribution, 2012 U.S. Dist. LEXIS 17983 (D. NJ), the district court determined that Joseph A. McPeak failed to plead facts sufficient to establish that S-L granted a trademark license necessary to sustain a cause of action under the act.

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