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Faegre Drinker Biddle & Reath LLP

Franchise Agreement Precludes Defend Trade Secrets Act Claim

On February 27, 2025, the District of Minnesota granted a franchisor’s motion to dismiss a lawsuit initiated by its franchisee, alleging, among other things, breach of contract and misappropriation of trade secrets under the...more

Lathrop GPM

North Dakota Federal Court Denies Subway’s Motion to Dismiss Franchisee Employee’s Vicarious Liability Sex Trafficking Claims

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A federal court in North Dakota recently denied a motion to dismiss vicarious liability claims against the corporate entities constituting the Subway franchise system. C.S. v. Subway Worldwide, Inc., 2025 WL 472475 (D.N.D....more

Lathrop GPM

Pennsylvania Appellate Court Affirms Finding of Vicarious Liability Against Franchisor in Pizza Delivery Accident

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The Superior Court of Pennsylvania recently affirmed a judgment holding Domino’s Pizza vicariously liable for a motorcycle accident involving a franchisee’s delivery driver. Coryell v. Morris, — A.3d —, 2025 Pa. Super. 28...more

Lathrop GPM

Ohio Federal Court Dismisses Perpetrator Liability Sex Trafficking Claims Against Hotel Defendants, Allows Vicarious Liability...

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A federal court in Ohio recently granted, in part, defendants’ motion to dismiss various TVPRA claims and denied their motion to transfer in a suit concerning alleged sex trafficking at two Red Roof Inn locations in Virginia...more

Lathrop GPM

Wisconsin Federal Court Transfers Venue to Indiana Notwithstanding Forum Selection Clause

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A federal court in Wisconsin recently transferred a franchisor’s breach of contract lawsuit to Indiana, the location of the franchisee, even though the parties’ supply agreement contained a Wisconsin forum selection clause....more

Lathrop GPM

California Federal Court Grants Remediation Franchisor’s Motion to Stay Proceedings

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A federal court in California recently granted Ringside Development Company’s motion to stay a franchisee-initiated lawsuit pending resolution through alternative dispute resolution. Jameson v. Ringside Development Company,...more

Lathrop GPM

Arizona Federal Court Grants Franchisee Temporary Restraining Order to Prevent Termination

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A federal court in Arizona recently granted a franchisee’s motion for temporary restraining order preventing termination of its franchise agreement and the franchisor’s withdrawal of any funds from the franchisee’s accounts....more

Bennett Jones LLP

The Hotel Management Agreement: What, Why and How?

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With the global downturn in certain asset class valuations, hotels are experiencing something of a renaissance and have re-emerged as a preferred asset class. With challenges in all but the best in class and transit-oriented...more

Polsinelli

2024 Recap of Franchise Developments and 2025 Trends to Watch

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There were a number of important and potentially impactful developments in 2024 that we predict will continuing developing and trending in 2025. Some of these topics are also discussed in other articles in this annual update....more

Polsinelli

California Enacts New Franchise Broker Law

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On Sept. 24, 2024, California Gov. Gavin Newsom signed Senate Bill 919, the California Franchise Broker Law, into law. Officially titled the “Franchise Investment Law: Franchise Brokers,” the California Franchise Broker Law...more

Lewitt Hackman

Franchisee 101: Outside Chance of a Franchise

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A New Jersey Court of Appeals found that a retailer was not a franchisee under New Jersey’s Franchise Practices Act (NJFPA) and therefore NJFPA’s termination requirements did not apply to the retailer’s termination....more

Lewitt Hackman

Franchisor 101: The Forwarded Franchisee

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A district court in Arizona granted a franchisor’s motion to transfer venue to Missouri pursuant to the terms of the franchise agreement. S&G Elite LLC (“S&G”) and ST National Franchising, LLC (“Franchisor”) entered into a...more

Foley & Lardner LLP

Guidance for Franchisors: Lessons from N.A.R., Inc. v. Eastern Outdoor Furnishings

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A recent New Jersey appellate court decision provides valuable guidance for franchisors and their in-house legal teams on structuring and protecting franchise relationships. The court affirmed that a terminated retailer of...more

Fox Rothschild LLP

IFA Takeaway: How AI in Franchising is Driving Growth, Sales, and Competitive Edge

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This week I am continuing to provide some takeaways from a few of the many sessions I attended at the International Franchise Association’s Annual Convention in Las Vegas earlier this month. Google Head of Data Measurement...more

Fox Rothschild LLP

IFA Takeaways: How Smart Franchisors Stay Out of Court

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The International Franchise Association’s Annual Convention is always filled with useful take home information for franchise practitioners. Last week, I attended the session “Proactive Strategies for Franchisors to Prevent...more

Nelson Mullins Riley & Scarborough LLP

Gold Dome Report - Legislative Day 18 - February 2025

The Georgia General Assembly returned in a frenzy on Tuesday with lawmakers and lobbyists rushing between back-to-back committee meetings in the morning and afternoon on a legislative day bifurcated by a 1 p.m. convening....more

Blake, Cassels & Graydon LLP

Class Dismissed: B.C. Court of Appeal Affirms Summary Judgment Decision Dismissing Proposed Class Action

On February 13, 2025, the B.C. Court of Appeal dismissed an appeal from summary judgment in Latifi v. The TDL Group Corp., confirming that a claim for conspiracy to injure will fail where the predominant purpose of an...more

Lathrop GPM

New Jersey Appellate Court Confirms Terminated Retailer Is Not in a Franchise Relationship with Manufacturer

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A New Jersey appellate court affirmed a state trial court’s ruling that a terminated retailer of custom outdoor kitchens was not in a franchise relationship with a manufacturer of outdoor grills and that the New Jersey...more

Fox Rothschild LLP

Non-Competes Under the Microscope: NASAA’s Latest Guidance for Franchisors

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Recently, the North American Securities Administrators Association, Inc.’s (“NASAA”) Franchise and Business Opportunities Project Group (“FPG”) issued guidance on post-term non-compete clauses in the context of the franchise...more

Lathrop GPM

New Jersey Federal Court Grants Summary Judgment Against Hotel Franchise Agreement Guarantor Enforcing Liquidated Damages...

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A federal court in New Jersey recently granted summary judgment against the guarantor of a hotel franchise agreement, requiring him to pay contractual post-termination damages. Ramada Worldwide Inc. v. Keys Hosp., LLC, 2024...more

Polsinelli

Global Franchise & Supply Network - 2025 Report

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While 2024 saw more stability in the financial markets than 2023, many challenges arose in 2024 for franchised businesses, manufacturers and retail chains, including bankruptcies of many large restaurant and retail chains,...more

Fox Rothschild LLP

Franchising Beyond State Lines: Minnesota Expands Franchise Act Reach

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While the Court found that the bundled costs did not constitute a franchise fee, the MFA may apply to franchisees located outside the state of Minnesota. Pennsylvania based distributor, M&M Creative Laminants’ (M&M) bought...more

Foley & Lardner LLP

Navigating Non-Compete Agreements: Key Considerations for In-House Counsel in Franchise Businesses

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In May of last year, the Federal Trade Commission (FTC) sought to ban non-compete agreements in most employment contracts. Franchise agreements were an exception. However, before the rule could take effect in September, a...more

Polsinelli

NASAA Supports Reasonable Post-Term Non-Competes in Franchise Agreements

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Last year saw non-compete agreements come under repeated scrutiny from the Federal Trade Commission. On April 23, 2024, the FTC issued a final rule banning non-compete agreements in most employment contracts....more

Offit Kurman

Maryland Franchise Reform Act Introduced

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On January 31, 2025, Delegate Marc Korman of Montgomery County introduced Maryland House of Delegates Bill 992, entitled the Franchise Reform Act, which would make the first significant changes to the Maryland Franchise...more

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