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 federal district court in New Jersey recently found that restaurant franchisor Golden Corral was entitled to nearly $1.2 million in consequential damages after terminating a franchised Golden Corral restaurant....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 trial judge for the United States Bankruptcy Court in Illinois denied a franchisee’s motion to enforce an automatic stay against The UPS Store (“TUPSS”), concluding that TUPSS’ termination of the franchise agreement was...more
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
An Illinois federal district court granted partial summary judgment in a trademark dispute against Ledo Pizza System, Inc. (“System”) and Ledo Pizza Carryouts, Ltd. (“Carryouts”), a franchisor of pizza restaurants...more
A Maryland federal district court denied a restaurant franchisor’s motion to dismiss, concluding that a restaurant manager at a franchised location alleged sufficient facts to support a finding that the franchisor is a joint...more
A Tennessee federal district court granted a franchisee’s request for a preliminary injunction to prevent the franchisor from enforcing noncompete restrictions under the franchise agreement while the franchisee litigated its...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 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 federal district court in Florida denied a former moving and junk hauling franchisee’s motion to dismiss claims of trademark infringement and unfair competition by franchisor College Hunks Hauling Junk (“CHHJ”)....more
A California federal district court held that judgment entered against individual owners of a franchisor entity, KEP Fortune, LLC, finding them jointly and severally liable with the franchisor entity, was not erroneous or a...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 Texas court of appeals affirmed judgment in favor of a plaintiff who claimed a franchisor was vicariously liable for a franchisee’s employee’s wrongful conduct....more
A Michigan district court held a franchisee breached its obligations under its franchise agreements and upheld the liquidated damages clause in the agreements....more
A Utah federal judge denied cookie franchisor Crumbl an injunction preventing its competitor, Dirty Dozen, from opening new locations while litigation between the two franchisors was pending....more
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
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