An Ohio appellate court, reversing a summary judgment decision, recently held that the “full-time efforts” section of an Area Representative Agreement was applicable only to the area representative entity and not the...more
A federal court in Wisconsin recently dismissed a multi-district class action suit in which owners of Harley-Davidson motorcycles asserted that Harley-Davidson violated the Magnuson-Moss Warranty Act (MMWA), as well as state...more
A federal court in California granted two motions to dismiss for failure to state a claim in an action asserting discrimination and tortious interference claims against Volvo Car USA and its franchisee Haron Motor Sales, Inc....more
A federal court in Colorado denied WD Ventures, LLC’s motion to dismiss for forum non conveniens pursuant to the forum selection clause in the parties’ franchise agreement indicating that the parties contemplated federal...more
A federal court in California recently granted partial summary judgment in favor of a distributor of wine corks for breach of an exclusivity provision following the supplier’s sale of certain corks in the United States. M.A....more
The Eleventh Circuit Court of Appeals recently upheld a settlement agreement between a franchisor and former franchisee that the franchisee alleged was obtained under the threat of criminal prosecution. Sewalk v. Valpak...more
3/18/2024
/ Chapter 11 ,
Commercial Bankruptcy ,
Criminal Prosecution ,
Duress ,
FL Supreme Court ,
Franchisee ,
Franchises ,
Franchisors ,
Fraud ,
Settlement Agreements ,
Valuation
A federal court in Arizona recently granted franchisor LeTip World Franchise’s motion to temporarily restrain and preliminarily enjoin a former franchisee from operating a competing business. LeTip World Franchise, LLC v....more
The Eleventh Circuit Court of Appeals recently affirmed in part, and vacated in part, a district court’s issuance of an injunction preventing a franchisor’s enforcement of a noncompete covenant as written but allowing...more
1/19/2024
/ Blue Pencil Contract Modification ,
Contract Term ,
Contract Terms ,
Employment Litigation ,
Enforceability ,
Franchises ,
Franchisors ,
Geographic Markets ,
Non-Compete Agreements ,
Partial Reversal ,
Public Interest ,
Restrictive Covenants
A federal court in Puerto Rico denied a distributor’s motion for a preliminary injunction, finding that justice would not be served by reinstating the relationship between the parties after it was effectively terminated. Nilo...more
The Eighth Circuit Court of Appeals has affirmed the denial of a motion to stay pending arbitration because the claims of the franchisor, Breadeaux’s Pisa, did not fall within the mandatory stay provision of the Federal...more
A federal court in Massachusetts has dismissed franchise claims brought against a manufacturer, concluding that the distributor had failed to identify a franchise fee that would qualify it for protection from non-renewal...more
10/6/2023
/ Choice-of-Law ,
Contract Terms ,
Counterclaims ,
Covenant of Good Faith and Fair Dealing ,
Distributors ,
Franchises ,
Manufacturers ,
Motion to Dismiss ,
Promissory Estoppel ,
Sales & Distribution Agreements ,
Tortious Interference ,
Unfair or Deceptive Trade Practices
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
The California Court of Appeals for the Second District, creating a split of authority among California’s appellate courts, held that Ford Motor Co. did not have the right to enforce an arbitration provision in a sales...more
8/11/2023
/ Appellate Courts ,
Arbitration ,
Car Dealerships ,
Express Warranty ,
Ford Motor ,
Magnuson-Moss Act ,
Manufacturers ,
Non-Signatories ,
Sales Contracts ,
Song-Beverly Credit Card Act ,
Split of Authority
A federal court in Maine granted a franchisor’s motion to dismiss claims asserting that a franchisor was liable for its franchisee’s alleged age discrimination in employment. Goodwill v. Anywhere Real Est., 2023 WL 4034372...more
7/7/2023
/ Age Discrimination ,
Dismissals ,
Employer Liability Issues ,
Employment Litigation ,
Franchise Agreements ,
Franchisee ,
Franchises ,
Franchisors ,
Independent Contractors ,
Joint Employers ,
Motion to Dismiss
A federal court in Florida recently dismissed a franchisee’s lawsuit sua sponte pursuant to the forum-selection clause in the parties’ franchise agreements, finding the clause valid, mandatory, and enforceable. Kava Culture...more
A federal court in California denied a subfranchisor’s motion to transfer venue, holding that its Operator Agreement constituted a franchise agreement, thus making its forum-selection clause void under the California...more
A federal court in New Jersey granted summary judgment to a car manufacturer, holding that a retailer coalition cannot state a claim on behalf of its members under the New Jersey Franchise Practices Act (NJFPA). N.J. Coal. of...more
A state appellate court in New York recently held a franchisor was not entitled to unpaid royalty fees because of its own breach of a franchise agreement reinstated by preliminary injunction. Integrity Real Estate Consultants...more
3/9/2023
/ Appeals ,
Attorney's Fees ,
Breach of Contract ,
Contract Terms ,
Franchise Agreements ,
Franchisee ,
Franchises ,
Franchisors ,
Preliminary Injunctions ,
Reversal ,
Royalties
A federal court in New Jersey has denied a franchisor’s motion for summary judgment on its claim for breach of contract by its franchisee, finding that the franchisee raised issues of material fact regarding whether it had...more
A California appellate court recently affirmed a trial court’s ruling that a customer had not agreed to arbitrate claims against a franchisor when she was presented with a “Terms of Use Agreement” at a franchised location....more