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Southern District of New York Transfers Anticipatory Declaratory Judgment Action to the Middle District of North Carolina

Marie Sharp’s Fine Foods, Ltd., a Belize condiment and jam manufacturer, and Eve Sales Corp., a New York-based purchaser of Marie Sharp’s branded products, filed an anticipatory declaratory judgment and breach of contract...more

North Dakota Federal Court Denies Subway’s Motion to Dismiss Franchisee Employee’s Vicarious Liability Sex Trafficking Claims

A federal court in North Dakota recently denied a motion to dismiss vicarious liability claims against the corporate entities constituting the Subway franchise system. C.S. v. Subway Worldwide, Inc., 2025 WL 472475 (D.N.D....more

Ohio Federal Court Rejects Hotel Franchisors’ Pursuit of Indemnification Under Federal Trafficking Statute but Permits State Law...

A federal court in Ohio recently narrowed two hotel franchisors’ attempt to implead their franchisee in a lawsuit under the Trafficking Victims Protection Reauthorization Act (TVPRA). A.S. v. Red Roof Inns, Inc., 2024 WL...more

South Carolina Federal Court Denies a Motion to Dismiss a Dietary Supplement Company’s Trademark Infringement Claims in Connection...

A federal court in South Carolina recently denied Amazon sellers Reza Davachi, Rez Candles Inc., Parvin Davachi, and PBD Collectibles LLC’s (collectively, Davachi) motion to dismiss Thorne Research, Inc.’s trademark...more

California Court of Appeals Affirmed Order Denying Motion to Vacate Judgment from Texas

The California Court of Appeals upheld a decision finding that a Texas court had personal jurisdiction over California franchisees. GlobalCFO LLC v. Venkataramanappa, 2024 WL 4220439 (Cal. Ct. App. Sept. 18, 2024)....more

Appellate Court in Pennsylvania Affirms Ruling on Gas Station Franchisor’s Indemnification Claims

A state appellate court in Pennsylvania recently affirmed a trial court’s summary judgment ruling addressing a franchisor’s claims for indemnification in a personal injury dispute. Sunoco (R&M), LLC v. Pa. Nat'l Mut. Cas....more

Seventh Circuit Court of Appeals Affirms District Court’s Partial Dismissal of Complaint for Breach of Distributor Agreement by...

The Seventh Circuit Court of Appeals recently affirmed a district court’s dismissal of two claims brought by distributors against the medical-device manufacturer Zimmer Biomet. It also affirmed a jury verdict in favor of the...more

FTC Takes Action Impacting the Franchise Relationship

On Friday, July 12, 2024, the Federal Trade Commission (“FTC”) published an analysis of the information it received in response to its Request for Information related to  franchisors’ business practices, launched in March...more

Minnesota State Court Grants Franchisor’s Motion for Preliminary Injunction Enjoining Franchisee from Violating Post-Termination...

A state trial court in Minnesota granted Renters Warehouse USA, LLC’s motion for a temporary injunction, and enjoined Life Property Managers, LLC (LPM) from violating its post-termination obligations and a covenant not to...more

Ohio Federal Court Grants Hotel Franchisors’ Motions for Summary Judgment on Sex Trafficking Claims

A federal court in Ohio recently granted summary judgment in favor of multiple hotel franchisors on sex trafficking claims brought under the Trafficking Victims Protection Reauthorization Act (TVPRA). S.C. v. Wyndham Hotels &...more

Washington Federal Court Grants, In Part, Distributor’s Motion to Dismiss Claim for Breach of a Noncompete Provision and Related...

A federal court in Washington recently granted in part and denied in part a former distributor’s partial motion to dismiss claims for breach of a post-termination noncompete agreement, breach of the implied duty of good faith...more

Federal Circuit Reverses Preliminary Injunction on Franchisor’s Patent and Trade Dress Infringement Claim

The Federal Circuit Court of Appeals reversed a preliminary injunction granted as to franchisor Urban Air’s patent and trade dress infringement claims against Kangaroo, LLC. UATP IP, LLC v. Kangaroo, LLC, 2024 WL 658205 (Fed....more

California Court of Appeals Affirms Rejection of Reverse Royalty Damages in a Breach of Contract Action by Franchisee

An appellate court in California has affirmed a trial court’s rejection of more than $4 million in lost business profits, which appellant Glen Suh alleged in a breach of contract action against franchisor Boba Time, Inc. Suh...more

Illinois Federal Court Grants Franchisor Summary Judgment on Claim Under the Illinois Franchise Disclosure Act

A federal court in Illinois recently granted partial summary judgment to LMLC Franchising, LLC (LMLC-F), LMLC Management, LLC (LMLC-M), and Todd Barnhardt on claims brought by John Doe and Aylin & Ramtin, LLC (A&R) for breach...more

California Federal Court Denies Franchisor’s Motion to Dismiss Consumer’s Claims Alleging Violation Under the Unfair Practices...

A federal court in California denied a franchisor’s motion to dismiss a consumer’s claims for a violation of the unfair-practices prong of California’s Unfair Competition Law (UCL) and unjust enrichment. Torres v. Botanic...more

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