A federal Appeals Court has held that an offer to extend a franchisee’s buyback period lacked consideration required to form an enforceable contract and, instead, was an unenforceable gratuitous promise by the franchisor....more
Tax service franchisor, H&R Block, was recently vindicated in having terminated a franchisee for violating an in-term non-compete covenant. A United States District Court granted the franchisor summary judgment in Devore v....more
8/2/2018
/ Breach of Contract ,
Commercial Leases ,
Competition ,
Contract Termination ,
Franchise Agreements ,
Franchisee ,
Franchisors ,
H&R Block ,
Marijuana Related Businesses ,
Non-Compete Agreements ,
Office Space ,
Royalties ,
Summary Judgment ,
Termination Clauses ,
Tortious Interference
A Florida federal court refused to dismiss a franchisor's claim for past due royalties and lost future profits.
The case concerned an Interim Healthcare staffing franchise in Arizona. The franchisor issued a default notice...more
4/30/2018
/ Breach of Contract ,
Contract Termination ,
Contract Terms ,
Failure To Pay ,
Franchises ,
Franchisors ,
Future Royalties ,
Lost Profits ,
Motion to Dismiss ,
Notice of Default ,
Pleadings ,
Royalties
A franchisee looking to transfer assets of a franchised business may be subject to the franchisor's right of first refusal, the franchisor's option to purchase the business, or both, depending on the language of a franchise...more
Though an individual owner and operator of a formerly franchised Church's Chicken restaurant in Texas was not a signer of the franchise agreement, a district court ruled the individual was subject to the agreement's...more
3/1/2018
/ Assignments ,
Breach of Contract ,
Cease and Desist ,
Confusingly Similar ,
Equitable Estoppel ,
Franchise Agreements ,
Franchisee ,
Franchisors ,
Motion To Enjoin ,
Non-Compete Agreements ,
Non-Signatories ,
Post-Termination Acts ,
Restaurant Industry ,
Third-Party Relationships ,
Trademark Infringement ,
Trademarks
Franchise agreements give franchisors nearly absolute, unfettered discretion to control advertising of their brands. Franchisors need not regard prior course of dealings with franchisees. An Illinois federal court dismissed a...more
2/28/2018
/ Advertising ,
Attorney's Fees ,
Breach of Contract ,
Contract Terms ,
Corporate Branding ,
Dietary Guidelines ,
Dismissals ,
Fee-Shifting ,
Franchise Agreements ,
Franchisee ,
Franchises ,
Franchisors ,
Islamic-Compliant ,
Kentucky Fried Chicken ,
Prior Express Consent ,
Promissory Estoppel ,
Revocation
A California federal judge held that breach of contract claims brought by franchisees of two ARCO-branded gas stations against their franchisor BP West Coast Products were untimely, and declined to adopt the franchisees'...more
A Florida federal district court found that a doughnut franchisee's failure to pay royalties and other fees constituted a material breach of contract justifying termination, even though the franchisee expressed a willingness...more
A federal court in New Jersey granted a franchisor's motion to compel arbitration of disputes involving seven frozen yogurt franchises, even though the claims were subject to different arbitration provisions in different...more
11/3/2017
/ American Arbitration Association ,
Arbitration ,
Breach of Contract ,
Conflicting Proposals ,
Contract Terms ,
Franchise Agreements ,
Franchisee ,
Franchisors ,
Insolvency ,
Liquidation ,
Motion to Compel ,
Unjust Enrichment
Most dealership and franchise agreements require the franchisor's prior written consent to the transfer of a business from one franchisee to another. The new franchisee is often required to sign the franchisor's then-current...more
8/31/2017
/ Assignments ,
Attorney's Fees ,
Breach of Contract ,
Coercion ,
Consent to Assignment ,
Dealerships ,
Franchise Agreements ,
Franchisee ,
Franchisors ,
Oil & Gas ,
Purchasers ,
Sellers ,
Written Consent
A franchisor's ability to set renewal terms can bind franchisees to terms in a later franchise agreement before the renewal agreement even exists. In a recent case, a franchisor could enforce a hypothetical non-compete...more