Girl Scouts of Manitou Council v. Girl Scouts of the U.S., No. 10-1986 (7th Cir. 2011)
Annotate this CaseThe national organization, chartered by Congress (36 U.S.C. 80302), decided to reduce the number of local councils, which are, essentially, franchises. The plan called for dissolution of the plaintiff council and dividing its territory among other councils. The district court ruled in favor of the national organization, reasoning that to apply the Wisconsin Fair Dealership Law to the national organization would violate the organization’s freedom of expression, guaranteed by the First Amendment. The Seventh Circuit reversed in part. The fact that a law of general application might indirectly and unintentionally impede the organization's efforts to communicate its message is not enough to render the law inapplicable. The law, which forbids a franchisor to terminate or substantially change the competitive circumstances of a dealership agreement without good cause, applies to the nonprofit organization; the national organization "all but abandoned" its argument that it had good cause.
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