Claims by a window sales and installation franchisee against its franchisor were dismissed by a federal district court in Michigan because the franchisee did not comply with the prelitigation mediation procedure in the...more
Franchisee Cipercen, LLC operated several Meineke Car Care Centers. By 2017, Cipercen owed $550,000 in unpaid franchise fees to Meineke and decided to sell the franchises. Cipercen believed Meineke offered to waive the unpaid...more
A poke restaurant franchisee in Ohio sued the franchisor for violation of the California Franchise Investment Law (CFIL) and other claims. The franchisor defendants moved to dismiss the claims. A California federal court...more
A federal appellate court held that a forum selection clause requiring litigation to be in the jurisdiction where the franchisor’s principal place of business was located when the action was brought is enforceable.
A...more
A New Jersey federal court denied a franchisor’s motion for preliminary injunction against a franchisee due to franchisor’s 11 month delay in bringing the motion. Franchisee entered into two franchise agreements with H-1 Auto...more
A federal court denied a franchisee’s motion for a temporary restraining order and preliminary injunction in a dispute over renewal of a franchise agreement to provide home care services with HCAF....more
A federal court in Wisconsin ruled that Dairy Queen did not breach a 1952 franchise agreement with a franchisee by requiring a prospective buyer of the franchise to sign an updated franchise agreement.
Dairy Queen and a...more
A federal court in Florida dismissed an action by franchisees against their franchisor for lack of subject-matter jurisdiction.
The franchisees asserted claims under California and Florida laws alleging the franchisor, OR...more
A federal appellate court held that Burger King and its franchisees may violate Section 1 of the Sherman Act (antitrust) by engaging in concerted action when entering into “no-hire” agreements. The appellate court reversed...more
A Tim Hortons franchisee sued the franchisor for breach of six franchise agreements and an area development agreement. Tim Hortons counterclaimed for breach of contract based on failure by the franchisee to meet the...more
A trash collection business brought claims against a franchisor and franchisee of Smash My Trash, a mobile waste compacting brand. The business, Republic Services of Kansas City, claimed the defendants wrongfully solicited...more
A federal district court in California granted a franchisor’s motion to transfer venue of claims brought by non-California franchisees to Texas. The ruling was based on a forum selection clause in the franchise agreements....more
A federal district court in Nevada partly denied a franchisor’s summary judgment motion on claims brought by a franchisee.
IJL Midwest entered into several franchise agreements with a franchisor of a dating and...more
A federal district court denied a motion for preliminary injunction brought by pizza franchisor, Breadeaux’s Pisa, LLC, seeking to stop a former franchisee from operating a competing pizza business.
The franchise agreement...more
A Delaware court found a yoga studio franchisee was entitled to an order requiring the franchisor to buy all of the franchisee’s yoga studios in six states. The court held the franchisor breached its contractual obligation...more
After obtaining a temporary restraining order, Freedom Franchise Systems (“Freedom”), the franchisor of a boat-club business, was denied a preliminary injunction to stop a former franchisee prospect from using claimed trade...more
A deaf customer brought an Americans with Disability Act (“ADA”) suit against Yum! Brands, Inc. (“Yum!”), parent company of KFC, Pizza Hut, Taco Bell and The Habit brands, and a franchisee. The lawsuit claimed failure to...more
Zubair Kazi operated a KFC franchise in Pueblo, Colorado since the 1980s. In 2019, KFC approved another individual to open a KFC restaurant in Pueblo. Kazi sued, claiming KFC breached its implied duty of good faith and fair...more
Patel v. 7-Eleven, a case in Massachusetts, has been closely watched since the ABC test took hold of franchise relationships in employee misclassification cases across the country.
A putative class of 7-Eleven franchisees...more
3/31/2022
/ 7-Eleven ,
ABC Test ,
Disclosure Requirements ,
Franchisee ,
Franchises ,
Franchisors ,
FTC Franchise Rule ,
Hiring & Firing ,
Independent Contractors ,
MA Supreme Judicial Court ,
Misclassification ,
Preemption ,
Putative Class Actions ,
Right to Control
A California federal court denied Mountain Mike’s Pizza a temporary restraining order (“TRO”) against one of its franchisees who did not renew its franchise agreement and opened a new restaurant under a different name.
In...more
A federal court in Virginia denied tax franchisor, Liberty Tax’s, motion to dismiss complaints by two of its area developers (“ADs”). The ADs claimed Liberty Tax breached their contract for wrongfully terminating, failing to...more
2/28/2022
/ Breach of Contract ,
Contract Disputes ,
Contract Drafting ,
Contract Renewal ,
Contract Termination ,
Contract Terms ,
Development Agreements ,
Failure To Pay ,
Franchise Agreements ,
Franchisee ,
Franchisors ,
Motion to Dismiss ,
Royalties ,
Wrongful Termination
A federal appellate court declined to enforce a choice-of-forum clause finding enforcement would conflict with Michigan’s Franchise Investment Law (“MFIL”).
Lakeside Surfaces, Inc., a maker of stone countertops, sued...more
An Indiana federal court granted hamburger and milkshake franchisor, Steak n Shake, a temporary restraining order (“TRO”) against a franchisee to enforce post-termination obligations under franchise and area development...more
A Georgia district court declined to dismiss a breach of contract case by a hotel franchisor against a franchisee. The court rejected the franchisee’s argument that the franchisor waived its rights under the parties’ license...more
A franchisee sued its franchisor, OsteoStrong Franchising, LLC, in Texas federal court after OsteoStrong terminated the franchise and development agreements. Termination occurred after the franchisee failed to timely develop...more