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Lathrop GPM

Minnesota Federal Court Grants Franchisor’s Motion for Preliminary Injunction for Noncompete and Lanham Act Violations by...

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A federal court in Minnesota recently granted franchisor Snap Fitness Inc.’s motion for preliminary injunction against an out-of-state franchisee that announced its intentions to open a competing gym during the term of the...more

Lathrop GPM

Florida Federal Court Finds Extension of Injunction Necessary to Protect Franchisor Rights

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A federal court in Florida recently held that extending a consent injunction was necessary to protect the interests of a franchisor. Tri-Cnty. Mobile Wash, Inc. v. B&C Wash Corp., 2024 WL 4379673 (S.D. Fla. Oct. 3, 2024)....more

Lathrop GPM

Tennessee Appellate Court Finds that Venue Clause in Franchise Agreement is Permissive and Not Mandatory

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The Tennessee Court of Appeals reversed a district court’s dismissal of a franchisee’s declaratory judgment claim, finding that the claim was properly brought in Tennessee.  Lakeway Real Estate2, LLC v. ERA Franchise Sys.,...more

Lathrop GPM

California Federal Court Grants Hotel Franchisor’s Motion for Summary Judgment on Sex Trafficking Claims

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

Lathrop GPM

Is Your Supply Chain Tidy?

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Last week, McDonald’s found itself in the national spotlight. However, instead of highlighting a holiday McFlurry, the hamburger giant was linked to an E. coli outbreak that spread across 13 states and caused approximately 75...more

K&L Gates LLP

Franchising Code Reforms: Exposure Draft Released

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The Australian government has released an Exposure Draft of the Competition and Consumer (Industry Code – Franchising) Regulations 2024 (Cth) (the Exposure Draft), which would repeal and replace the current Franchising Code...more

Stark & Stark

TGI Friday’s Files for Chapter 11 Bankruptcy Protection

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​​​​​​​Dallas-based TGI Friday’s, which started in Manhattan in 1965 and was one of the first chains to capitalize on the “happy hour” concept, filed for Chapter 11 bankruptcy protection on Saturday in the Northern District...more

Lewitt Hackman

Franchisee 101: Kicking Injunctions to the Curb

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A Kansas district court denied a franchisor’s motion for preliminary injunction against its former franchisee who engaged in competing businesses immediately after terminating the franchise relationship....more

Lewitt Hackman

Franchisor 101: Under Hot Water in the Proper Court

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A Washington federal court denied a franchisor’s motion to dismiss for lack of personal jurisdiction, finding the court had personal jurisdiction over a franchisor’s agents who reside in Louisiana, based on their purposeful...more

Wiley Rein LLP

Wiley Consumer Protection Download (October 29, 2024)

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Welcome to Wiley’s update on recent developments and what’s next in consumer protection at the Consumer Financial Protection Bureau (CFPB) and Federal Trade Commission (FTC). In this newsletter, we analyze recent regulatory...more

Kilpatrick

6 Key Takeaways - What Every Franchise Lawyer Should Know About Trademark and Unfair Competition Surveys

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Chris Bussert recently presented at the 47th Annual ABA Forum on Franchising in Phoenix on the use of trademark and unfair competition surveys. Key takeaways from his presentation are the following...more

Constangy, Brooks, Smith & Prophete, LLP

You be the judge: Does this ADA plaintiff have a case?

Based on a real lawsuit. Names have been changed to protect the innocent. Facts may not be 100 percent accurate. PART ONE: Imagine you're the boss. You run a fast-food franchise, Flippin' Burgers. You hire Gwendolyn to...more

Baker Donelson

Deadline Nears for Tennessee Franchise Tax Refund Eligibility

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As originally enacted, 2024 Public Chapter 950 provides that if a taxpayer paid the franchise tax based upon the minimum measure tax base found at Tenn. Code Ann. Section 67-4-2108, then the Tennessee Department of Revenue...more

Miles Mediation & Arbitration

Successful Mediation of Franchise Disputes: Factors That Influence the Outcome

Franchising as a legal relationship has embraced mediation as a pre-filing requirement to a lawsuit or arbitration in most franchise agreements. So, how has it gone? While we have roughly a 25-year history since the earliest...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Business Groups Oppose Los Angeles City Council Motion to Expand Predictable Scheduling Ordinance to Fast-Food Workers

On July 2, 2024, Los Angeles City Councilmembers Hugo Soto-Martínez and Katy Yaroslavsky introduced a motion to the City Council to expand the fair workweek predictable scheduling ordinance to fast-food workers. On September...more

Foley & Lardner LLP

Non-Resident May Sue Under Minnesota Franchise Act, but Payment for Goods at Wholesale Prices Is Not a Franchise Fee

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A non-resident of Minnesota can sue a manufacturer for violation of the Minnesota Franchise Act. At the same time, the non-resident’s purchase of the manufacturer’s products at bona fide wholesale prices did not constitute...more

Lathrop GPM

California Court of Appeals Affirmed Order Denying Motion to Vacate Judgment from Texas

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The California Court of Appeals upheld a decision finding that a Texas court had personal jurisdiction over California franchisees. GlobalCFO LLC v. Venkataramanappa, 2024 WL 4220439 (Cal. Ct. App. Sept. 18, 2024)....more

Lathrop GPM

Michigan Federal Court Grants Motion to Dismiss Claims Against One Owner of Franchisor, Denies Motion to Dismiss Claims Against...

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A federal court in Michigan recently granted a motion to dismiss for lack of personal jurisdiction against one owner of a franchisor, while denying the motion to dismiss against the other owner and granting the franchisor’s...more

Lathrop GPM

Virginia Federal District Court Grants Motion to Transfer Pursuant to Forum Selection Clause Notwithstanding Virginia Retail...

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A federal court in Virginia recently granted a motion brought by equipment suppliers DET Diesel Emission Technologies, LLC and Synergy Catalyst, LLC, together doing business as “Recore,” to enforce a forum selection clause...more

Lathrop GPM

Minnesota Supreme Court Holds that Franchisees Based Outside of Minnesota Are Not Barred from Asserting Claims Under the Minnesota...

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The Supreme Court of Minnesota has held that there is no territorial limit to the Minnesota Franchise Act’s (MFA) provision barring unfair practices, but nevertheless affirmed dismissal of MFA claims where the parties’...more

Lathrop GPM

Franchisee’s Execution of Competing Franchise Agreement During Franchise Term Forecloses Claims Against Former Franchisor

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A federal court in New Jersey granted the franchisor of the Holiday Inn and Holiday Inn Express brands (Holiday Hospitality) summary judgment on former franchisee Scion Hotels’ complaint alleging violations of the New Jersey...more

Lathrop GPM

Massachusetts Supreme Judicial Court Rules that Franchisees Did Not Perform Services for Franchisor Within the Meaning of the...

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The Massachusetts Supreme Judicial Court answered “no” to a certified question from the First Circuit Court of Appeals asking whether plaintiff franchisees “‘perform any service’ for 7-Eleven within the meaning of [the...more

Freeman Law

Is Your Business Subject to the Texas Franchise Tax?

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As noted in a prior post, the Texas franchise tax is a tax imposed on any “taxable entity” that does business in Texas or that is chartered or organized in Texas. This begs the question – “Which entities are taxable, and...more

IR Global

How To Ensure A Smooth Transaction When Selling A Franchise

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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. With extensive...more

Locke Lord LLP

Can Nurses Lawfully Be Classified as Independent Contractors? September 2024 IC Legal ‎News Update

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One of the most important legal developments last month is a new lawsuit filed by registered nurses against a leading health care system alleging that they have been misclassified as independent contractors instead of...more

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