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Lathrop GPM

Ohio Federal Court Rejects Hotel Franchisors’ Pursuit of Indemnification Under Federal Trafficking Statute but Permits State Law...

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A federal court in Ohio recently narrowed two hotel franchisors’ attempt to implead their franchisee in a lawsuit under the Trafficking Victims Protection Reauthorization Act (TVPRA). A.S. v. Red Roof Inns, Inc., 2024 WL...more

Lathrop GPM

Washington Court Grants Summary Judgment Against Attorney General and Awards Fees to Franchisor

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A state court in Washington has granted summary judgment and awarded over $3.4 million in attorneys’ fees and costs to a franchisor in a dispute brought by the Washington Attorney General under the Washington’s Consumer...more

Lathrop GPM

California Federal Court Grants Franchisor’s Motion to Compel Arbitration but Finds Forum Selection and Choice of Law Clauses...

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A federal court in California recently granted franchisor Spiffy Franchising, LLC’s motion to compel arbitration of a franchisee’s claims, but found the North Carolina forum selection and choice of law provisions in the...more

Lathrop GPM

Kansas Federal Court Finds Personal Jurisdiction Over Franchisee’s Alleged Competitive Business in Unfair Competition Case

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In a franchisor’s suit against its franchisee and that franchisee’s new business, a federal court in Kansas recently denied the new business’ motion to dismiss for lack of personal jurisdiction. HappyFeet-Legends Int’l, Inc....more

Lathrop GPM

Franchisor Not Liable for Alleged Customer Injuries at Franchised Water Park

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A federal court in Mississippi granted summary judgment in favor of a franchisor on negligence claims that arose after eleven children allegedly contracted E. coli in a franchised water park’s pool. Neely v. Great Escapes...more

Davis Wright Tremaine LLP

Food Venture Financing News - Weekly Issue No. 218

Food Venture Financing Trends - Rebel Foods, Wendy's India franchisee and cloud kitchen operator, announced that it raised $210 million in its Series G financing....more

McDermott Will & Emery

Key Takeaways | 2024 Recap and What’s on Tap for Alcoholic Beverage Companies

The alcohol beverage industry experienced a transformative year, marked by notable shifts in consumer behavior, innovative product launches, and regulatory changes. During this webinar, McDermott’s Alcohol Group provided a...more

Lewitt Hackman

Franchisee 101: Booked for Personal Jurisdiction

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The California Court of Appeals upheld a lower court’s decision finding that a Texas court had personal jurisdiction over a California franchisee. GlobalCFO, LLC and GlobalCFO Franchise, LLC (collectively, “GlobalCFO”),...more

Lewitt Hackman

Franchisor 101: Convenient Franchise Practices

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A New Jersey federal district court granted summary judgment in favor of 7-Eleven, Inc. in a dispute with a franchisee. The franchisee signed a franchise agreement to operate a 7-Eleven store in Princeton, New Jersey,...more

Allen Matkins

What Is A Franchise?

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If you ask for a definition of "franchise" in California law, there are at least three answers.  Two are statutory and one is judicial.  Corporations Code Section 31005 defines "franchise" for purposes of California's...more

Foley & Lardner LLP

A Lucid Interpretation of “Affiliates” under Washington’s Franchise Act

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A Washington state appeals court has clarified the scope of Washington’s Franchise Act in Lucid Group USA, Inc. v. State of Washington, Department of Licensing. There, Lucid Group USA, Inc. (“Lucid Group”), the dealer, wanted...more

Lathrop GPM

Second Circuit Affirms Dismissal of New York Dealer Act Claims

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The Second Circuit recently affirmed the dismissal of claims under the New York Franchised Motor Vehicle Dealer Act and various contract claims. Garrand Bros. LLC v. Am. Honda Motor Co., 2024 WL 4691004 (2d Cir. Nov. 6,...more

Freeman Law

How to Compute the Texas Franchise Tax | Exceptions to Standard Computation

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In my most recent blog post, I finished going through the process for computing a taxable entity’s Texas Franchise Tax responsibility. That post can be found here. However, at the end of that post, I noted that there were...more

Pillsbury Winthrop Shaw Pittman LLP

Bankruptcy Court Ruling Highlights Circuit Split on Franchise Agreements

The California decision reinforces a strict approach to assumption of franchise agreements, underscoring potential roadblocks for franchisee reorganizations. Even where a debtor is not assigning a franchise agreement,...more

Wiley Rein LLP

Court Considers Prior Notice, Intentional Acts, and Contract Exclusions as Applied to Insured’s Violation of California Franchise...

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The United States District Court for the District of New Hampshire, applying California law, considered several exclusions under a directors and officers liability policy as applied to a violation of the California Franchise...more

IR Global

Key Considerations for Franchise Businesses When Undertaking M&A

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Mergers and acquisitions (M&A) in the franchise industry are complex transactions that require careful planning, due diligence, and a keen understanding of both pre and post-deal considerations....more

Foley & Lardner LLP

New Requirements for Franchise Brokers in California

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On September 24, 2024, Governor Gavin Newsom signed Senate Bill 919 (“SB 919”), amending California’s Franchise Investment Law (“FIL”) to regulate franchise brokers and franchise sales organizations. The law will take effect...more

International Lawyers Network

Special Circumstances: Lessons from Canada’s Federal Court on Trademark Non-Use

A recent decision of the Federal Court, Trial Division in Little Brown Box Pizza, LLC v. DJB (2024 FC 1592) provides guidance on the question of special circumstances that can excuse an absence of trademark use in Section...more

Carlton Fields

SDNY Confirms Arbitration Order, Holding Order Was Final and Arbitrator Did Not Exceed Authority

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In Subway Franchise Systems of Canada ULC v. Subway Developments 2000 Inc., the U.S. District Court for the Southern District of New York addressed whether an arbitrator exceeded her authority when ordering that one of the...more

Freeman Law

How to Compute the Texas Franchise Tax | Step 3 – Determining the Applicable Tax Rate

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I’ve posted two blogs that cover the first two steps in computing the Texas Franchise Tax – the computation of “taxable margin” and the computation of the appropriate “apportionment factor.” Those posts can be found here and...more

Foley & Lardner LLP

Louisiana Based Franchisor and Its Employees Cannot Avoid Personal Jurisdiction in Washington State

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Washington-state based franchisees Greg and Gabriela Skistimas brought suit against Hotworx Franchising LLC in the U.S. District Court for the Western District of Washington alleging misleading and unfair practices related to...more

Foley & Lardner LLP

Manufacturer and Distributor’s Relationship Is Not a Franchise Under Connecticut Law

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The Superior Court of Connecticut addressed a contractual dispute between a manufacturer of snow removal equipment and its distributor. HP Fairfield, a distributor of snow removal equipment, argued that a manufacturer, CIVES...more

Lewitt Hackman

Franchisee 101: Muscling Through the Competition

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A Minnesota district court issued a preliminary injunction against a former franchisee who engaged in a competing business during the franchise relationship. Snap Fitness, Inc., a gym franchisor, entered into a franchise...more

Lewitt Hackman

Franchisor 101: No Control, No Liability

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A California federal court granted summary judgment in favor of Red Roof Inns, a hotel franchisor, on sex trafficking claims brought under the Trafficking Victims Protection Reauthorization Act, or TVPRA....more

Freeman Law

How to Compute the Texas Franchise Tax

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Step 1 – Taxable Margin Once you’ve determined that your business is subject to the Texas Franchise Tax, the next step will be to compute the amount of that tax. Easy, right?...more

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