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Franchisee’s Execution of Competing Franchise Agreement During Franchise Term Forecloses Claims Against Former Franchisor

A federal court in New Jersey granted the franchisor of the Holiday Inn and Holiday Inn Express brands (Holiday Hospitality) summary judgment on former franchisee Scion Hotels’ complaint alleging violations of the New Jersey...more

Georgia Federal Court Dismisses Human Trafficking Claims Against Franchisor

A federal court in Georgia recently dismissed the claims of an alleged human trafficking victim against hotel franchisor G6 Hospitality, while allowing some claims to proceed against the hotel franchisee. Doe (K.B.) v. G6...more

New Jersey Federal Court Denies Customers’ Motion to Declare Class Action Waiver & Arbitration Provision Invalid

A federal court in New Jersey recently declined to issue an order invalidating the class action waiver and arbitration provision used by franchisor The UPS Store, Inc. and certain TUPSS franchisees’ (collectively, TUPSS) and...more

Illinois Appellate Court Upholds Dismissal of Vicarious Liability Claim Against Franchisor Due to Franchisor’s Lack of Day-to-Day...

An appellate court in Illinois upheld a trial court’s dismissal of claims that franchisor was vicariously liable for the alleged actions of its franchisees. Shavers v. The UPS Store, Inc., 2023 IL App (1st) 221407-U (Ill....more

Arizona Federal Court Declines to Enforce Noncompete Provisions Against Nonsignatories

A federal court in Arizona recently denied preliminary relief enforcing franchisees’ noncompete provisions against nonsignatories to the franchise agreement because the franchisor failed to present sufficient evidence that...more

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