A California federal court granted a motion to compel arbitration by retail franchisor Batteries Plus and its two executives, and dismissed a franchisee’s action alleging violations of the California Franchise Investment Law,...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 Pennsylvania federal court refused to enforce non-competition and non-solicitation covenants in a franchise agreement of a nationwide tax preparation service franchisor. The court dismissed the franchisor’s request for...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 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 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
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
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 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
Past and present franchisees of commercial cleaning service franchisor, Jani-King, brought claims for violation of Connecticut minimum wage and anti-kickback laws, and unjust enrichment. They claimed Jani-King misclassified...more
11/1/2021
/ Appeals ,
Dismissals ,
Franchise Agreements ,
Franchisee ,
Franchises ,
Independent Contractors ,
Minimum Wage ,
Misclassification ,
Service Agreements ,
Summary Judgment ,
Unjust Enrichment ,
Wage and Hour
A Minnesota federal court ruled in favor of a franchise broker on summary judgment. The court dismissed misrepresentation claims brought by a military veteran who alleged unlawful inducement to invest in a failed kickboxing...more
A federal court in Connecticut ruled against an urgent care franchisor’s motion to dismiss, finding the plaintiff had standing to sue under Article III of the U.S. Constitution. The court still dismissed the plaintiff’s...more
4/29/2021
/ Article III ,
Choice-of-Law ,
Dismissals ,
Forum Selection ,
Franchise Acts ,
Franchise Agreements ,
Franchisors ,
Goods or Services ,
Sherman Act ,
Standing ,
Successor Interests
In a misappropriation of trade secrets action, a franchisor sued a prospective franchisee, claiming breach of a non-disclosure agreement ("NDA") by operating a competing business. The prospective franchisee signed the NDA...more
A guest sued the Hampton Inn and Suites franchisee in Nashville, Tennessee and the franchisor’s parent company, Hilton Domestic Operating Co., Inc. (“Hilton”), claiming race discrimination by a hotel employee. The plaintiff...more
7/31/2020
/ Agency Relationship ,
Consumer Complaint Management ,
Control Test ,
Dismissals ,
Franchisee ,
Franchisors ,
Hotels ,
Lack of Jurisdiction ,
Nexus ,
Personal Jurisdiction ,
Purposeful Availment Test ,
Race Discrimination
A federal court in Missouri ruled that a franchisee’s fraud claim cannot be based on the franchisor’s prediction at a franchise expo of future success in the franchised business....more
5/29/2020
/ Burden of Proof ,
Dismissals ,
Due Diligence ,
Franchise Agreements ,
Franchisee ,
Franchises ,
Fraud ,
Misrepresentation ,
Negotiations ,
Puffery ,
Reasonable Reliance Claims ,
Trade Shows
A federal appeals court reversed dismissal of a claim against a barbeque restaurant franchisor. The court found that, despite having signed releases in favor of the franchisor, a former franchisee had valid claims for...more
5/5/2020
/ Actual Malice ,
Appeals ,
Breach of Contract ,
Business Partners ,
Buyouts ,
Covenant of Good Faith and Fair Dealing ,
Dismissals ,
Franchise Agreements ,
Franchisee ,
Franchises ,
Franchisors ,
Fraud ,
Restaurant Industry ,
Reversal ,
Tortious Interference ,
Unfair or Deceptive Trade Practices ,
Waivers
A federal court has granted, in part, restaurant franchisor Golden Corral’s motion to dismiss a complaint brought by a former franchisee. The court found a general release of claims, executed as part of an assignment of a...more
12/23/2019
/ Assignments ,
Dismissals ,
Franchise Acts ,
Franchisee ,
Franchisors ,
Golden Corral ,
Motion to Dismiss ,
Release of Claims ,
Release of Liability ,
Resorts & Restaurants ,
State Law Claims ,
Waivers
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 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
For a relationship to meet the legal definition of a "franchise" in some jurisdictions, the franchisor must give significant assistance to, or have significant control over, the franchisee's business. A franchisor's...more