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
A federal court in Maryland denied Marriott International, Inc.’s motion to dismiss plaintiffs’ action based on forum non convenient.
Plaintiffs sued Marriott and the JW Marriott hotel franchisee in India for premises...more
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
The Eleventh Circuit Court of Appeals reversed a district court’s summary judgement order, granting a chocolate shop franchisor’s breach of contract and unfair competition claims. The appellate court concluded there were...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