A Michigan bankruptcy court held that a debtor-franchisee seeking to reject a franchise agreement for an auto repair center could not reject either a stand-alone confidentiality agreement with the franchisor or the...more
A federal district court in Texas denied an individual defendant’s motion to dismiss for lack of personal jurisdiction, finding the defendant—the owner of the company that was granted a franchise—was bound in his individual...more
A federal district court in Texas denied a preliminary injunction filed by a franchisee (“EYM”) after Pizza Hut, as franchisor, terminated the franchise agreements....more
7/1/2024
/ Breach of Contract ,
Breach of Duty ,
Failure to Comply ,
Fiduciary Duty ,
Forbearance Agreements ,
Franchise Agreements ,
Franchise Termination ,
Franchisee ,
Franchisors ,
Notice of Default ,
Preliminary Injunctions ,
Tortious Interference
A Florida district court granted a motion to stay court proceedings pending arbitration between a franchisor and a third-party, non-signatory to a franchise agreement, containing an arbitration clause....more
A Massachusetts federal district court enforced a non-compete provision in a franchise agreement to enjoin former franchisees from operating a different branded automotive business at the same location as the former...more
A California appellate court affirmed a trial court’s denial of more than $4 million in damages for “reverse royalties” arising from a franchisee’s purchase of a boba franchise with an exclusive 10-mile territory....more
A North Carolina federal court dismissed a complaint brought by a franchisee against its franchisor. The franchisee alleged the franchisor fraudulently induced the franchisee to enter into a franchise agreement, but the court...more
A federal district court in Indiana held that a forum selection clause in the franchise agreement prevailed over a competing forum selection clause in the personal guaranty....more
A Michigan federal district court dismissed a franchisee’s claims against its franchisor's CEO and several individuals responsible for negotiating its franchise agreements, for lack of personal jurisdiction....more
A Wisconsin federal district court allowed an insurance company’s field representative’s allegations that his representation agreement was an unregistered franchise to proceed beyond the pleading stage....more
A Massachusetts district court granted a product supplier’s motion to dismiss a distributor’s counterclaims that the supplier violated state franchise sales and consumer protection laws. The court found the distributor did...more
A Minnesota federal court denied cookie dough franchisor Cookie Dough Bliss Franchising’s motion for a temporary restraining order and preliminary injunction against a former Minnesota franchisee and its owners....more
9/29/2023
/ Breach of Contract ,
Franchise Agreements ,
Franchise Termination ,
Franchisee ,
Irreparable Harm ,
Non-Compete Agreements ,
Preliminary Injunctions ,
Proprietary Information ,
Public Interest ,
Restraining Orders ,
Trade Secrets ,
Trademarks
A Minnesota bankruptcy court granted Fantastic Sams a preliminary injunction against a former Fantastic Sams franchisee, finding the operation of four new hair salons by the former franchisee was prohibited by enforceable...more
A Virginia district court dismissed a lawsuit filed by 360 Painting, a franchisor of residential and commercial painting services, concluding an addendum to the parties’ franchise agreement precluded 360 Painting’s claims for...more
A Texas federal court denied a franchisor’s request to enjoin operations of a former franchisee’s competing optical retail stores for failure to establish likelihood of success on a claim of trade dress infringement. The...more
A Dallas-based federal district court denied a franchisor’s request to keep its action against former franchisees in Texas and transferred the action to the Eastern District of Virginia....more
A federal district court in New York dismissed workplace harassment and retaliation claims against corporate affiliates of the Golden Krust Caribbean Bakery & Grill franchisor for damages as a result of workplace harassment...more
6/30/2023
/ Civil Rights Act ,
Dismissals ,
Employer Liability Issues ,
Employment Litigation ,
Franchise Agreements ,
Franchisee ,
Franchisors ,
Harassment ,
Joint Employers ,
Retaliation ,
Title VII
A Michigan federal district court denied a franchisor’s motion to dismiss claims under Title VII of the Civil Rights Act of 1964 and Michigan law, and claims alleging retaliatory termination and sexually hostile work...more
6/30/2023
/ Civil Rights Act ,
Employer Liability Issues ,
Employment Litigation ,
Franchisee ,
Franchisors ,
Hiring & Firing ,
Hostile Environment ,
Joint Employers ,
Motion to Dismiss ,
Retaliation ,
Sexual Harassment ,
Title VII
The Second Circuit Court of Appeals affirmed a district court’s order denying a franchisor’s request for preliminary injunction against a terminated franchisee to enforce covenants not to compete or solicit former clients....more
A federal district court denied a pizza franchisor’s motion to dismiss a former franchisee’s complaint, finding the former franchisee sufficiently pleaded the franchisor coerced the franchisee into signing a general release....more
The Massachusetts Supreme Judicial Court granted summary judgment in favor of the seller of a janitorial service franchise based on claims by the buyers that the COVID-19 pandemic excused their obligation to pay the seller...more
4/28/2023
/ Buyers ,
Coronavirus/COVID-19 ,
Franchisee ,
Joint and Several Liability ,
MA Supreme Judicial Court ,
Promissory Notes ,
Purchase Agreement ,
Purchase Price ,
Sellers ,
Selling a Business ,
Summary Judgment
An Ohio appellate court upheld the state trial court’s decision to grant a permanent injunction against two former franchisees of an auto body shop franchise working for a competitor in violation of the franchise agreement’s...more
4/28/2023
/ Breach of Contract ,
Confidentiality Agreements ,
Evidence ,
Franchise Agreements ,
Franchisee ,
Franchisors ,
Irreparable Harm ,
Non-Compete Agreements ,
Permanent Injunctions ,
Proprietary Information ,
Restrictive Covenants ,
Trade Secrets
A federal district court in Michigan granted franchisor Little Caesar Enterprises, Inc. (LCEI) a default judgment against its former franchisee for violating the terms of the franchise agreement....more
A federal district court in New Jersey denied Travelodge Hotels’ motion for partial summary judgment against a former franchisee, holding there are genuine issues of fact as to Travelodge’s breach of contract claims....more
An Oregon federal court denied a franchisor’s motion to compel the principals and personal guarantors of a franchisee into arbitration because the parties did not sign arbitration agreements in the franchise documents....more