Adees Corp. v. Avis Rent A Car System, Inc.

MEMORANDUM **

Adees Coi’poration appeals the district court’s grant of summary judgment in favor of Avis Rent A Car System, Inc. We have jurisdiction pursuant to 28 U.S.C. § 1291 and affirm.

We review de novo the district court’s decision to grant or deny summary judgment. United States v. Alameda Gateway Ltd., 213 F.3d 1161, 1164 (9th Cir.2000). Because the parties are familiar with the facts, we will not recount them here in detail except as necessary. Adees alleges that the Agency Operator Agreement is a franchise agreement as defined by the California Franchise Relations Act (“CFRA”), and therefore, that Avis must have good cause to terminate the agreement pursuant to CFRA § 20020. The parties agree that whether or not the Agency Operator Agreement represents a franchise agreement depends centrally on whether Adees pays Avis, “directly or indirectly, a franchise fee.” Cal. Bus. & Prof.Code § 20001(c).

Adees argues that under the Agency Operator Agreement it pays two franchise fees to Avis. Adees contends that a $0.20 per car per day fleet surcharge that Avis deducts from Adees’s commission constitutes a franchise fee. We agree "with the district court that the fleet…