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Dismissals Franchises Franchisee

Lathrop GPM

Michigan Court of Appeals Affirms Dismissal of Certain Franchisee Claims Against Franchisor Due to Release of Liability and...

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The Michigan Court of Appeals recently affirmed a trial court’s dismissal of certain claims by franchisees Red Fit, LLC and Cali Red, LLC against franchisor Red Effect International Franchise, LLC based on a release of...more

Lathrop GPM

California Federal Court Dismisses Discrimination and Tortious Interference Claims Brought Against Car Manufacturer and Its...

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A federal court in California granted two motions to dismiss for failure to state a claim in an action asserting discrimination and tortious interference claims against Volvo Car USA and its franchisee Haron Motor Sales, Inc....more

Lathrop GPM

California Federal Court Grants Retail Franchisor’s Motion to Compel Arbitration and Dismisses Action

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A federal court in California recently granted a motion brought by a franchisor and two of its employees to compel arbitration and dismiss an action alleging violations of the California Franchise Investment Law, breach of...more

Lathrop GPM

Virginia Federal Court Dismisses Franchisor's Trade Secret Claim for Failure to Plead with Specificity

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A Virginia federal court recently granted a motion to dismiss all six counts of a franchisor's complaint against a competing former franchisee for failure to plead with specificity under the Defend Trade Secrets Act of 2016...more

Lathrop GPM

Illinois Federal Court Grants Franchisor’s Motion to Dismiss Terminated Franchisee’s Fraudulent Misrepresentation and Breach of...

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A federal court in Illinois recently dismissed a former franchisee’s counterclaims for alleged fraudulent misrepresentation, breach of contract regarding the franchisor’s advertising fund, and breach of contract and implied...more

Lathrop GPM

Georgia Federal Court Dismisses Human Trafficking Claims Against Franchisor

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A federal court in Georgia recently dismissed the claims of an alleged human trafficking victim against hotel franchisor G6 Hospitality, while allowing some claims to proceed against the hotel franchisee. Doe (K.B.) v. G6...more

Lathrop GPM

Illinois Appellate Court Upholds Dismissal of Vicarious Liability Claim Against Franchisor Due to Franchisor’s Lack of Day-to-Day...

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An appellate court in Illinois upheld a trial court’s dismissal of claims that franchisor was vicariously liable for the alleged actions of its franchisees. Shavers v. The UPS Store, Inc., 2023 IL App (1st) 221407-U (Ill....more

Lathrop GPM

Seventh Circuit Reverses Dismissal of Anti-Poaching Class Action Against McDonald’s

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In an important case of first impression that drew amicus participation from the Department of Justice, the Federal Trade Commission, and the International Franchise Association, the Seventh Circuit reversed a judgment in...more

Lewitt Hackman

Franchisor 101: A Broad Brush Addendum

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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

Lathrop GPM

Maine Federal Court Grants Franchisor’s Motion to Dismiss Age Discrimination Claim Brought by Franchisee’s Independent Contractor

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A federal court in Maine granted a franchisor’s motion to dismiss claims asserting that a franchisor was liable for its franchisee’s alleged age discrimination in employment. Goodwill v. Anywhere Real Est., 2023 WL 4034372...more

Foley & Lardner LLP

Court Looks at What a Franchise Is Under the Minnesota Franchise Act

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In Louis Degidio, Inc. v. Industrial Combustion, LLC, Louis Degidio, Inc. (Degidio) and Louis Degidio Services, Inc. (Degidio Services) sued Industrial Combustion, LLC (IC), a manufacturer of “institutional boiler system”...more

Lathrop GPM

Michigan Federal Court Grants Motion to Dismiss for Lack of Personal Jurisdiction and Forum Non Conveniens

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A federal court in Michigan granted a motion to dismiss claims that franchisor Bateel International, LLC had violated the Michigan Franchise Investment Law and the Texas Business Opportunity Act. Luxury Concepts, Inc. v....more

Lathrop GPM

Maryland Federal Court Denies Motion to Dismiss for Forum Non Conveniens but Grant’s Franchisee’s Motion to Dismiss for Personal...

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A federal court in Maryland granted a foreign hotel franchisee’s motion to dismiss for lack of personal jurisdiction but denied a forum non conveniens motion in a personal injury case naming both franchisor and franchisee as...more

Lathrop GPM

New Jersey Federal District Court Denies Franchisee’s Motion to Compel Arbitration and Grants Franchisor’s Motion to Dismiss

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A federal court in New Jersey has denied a motion to compel arbitration in a dispute over alleged breach of a franchise agreement. Passion for Restaurants, Inc. v. Villa Pizza, LLC, 2022 WL 18024209 (D.N.J. Dec. 30, 2022)....more

Lathrop GPM

Louisiana Appeals Court Affirms Dismissal of Vicarious Liability Claim

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An appellate court in Louisiana recently affirmed summary judgment in favor of a franchisor, dismissing negligence and premises liability claims asserted by a customer was injured on unauthorized exercise equipment. Flynn v....more

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

Eleventh Circuit Serves a Whopper of a Ruling on Franchisor’s ‘No-Poach’/‘No-Hire’ Agreement With Franchisees

​​​​​​​Over the last several years, business-to-business “no-hire” and “no-poach” agreements have come under legal attack, including through enforcement actions by the Federal Trade Commission and criminal prosecutions by the...more

Lewitt Hackman

Franchisee 101: Jani-King Franchisees Wear Many Crowns

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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

Lathrop GPM

The Franchise Memorandum - Issue # 266

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Welcome to The Franchise Memorandum by Lathrop GPM. Below are summaries of recent legal developments of interest to franchisors. Post-Termination Injunction: Noncompete Covenants - California Federal Court Enforces...more

Lewitt Hackman

Franchisor 101: Can’t Break the Broker

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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

Lewitt Hackman

Franchisee 101: Expo is No Excuse

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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

Lewitt Hackman

FRANCHISEE 101: Bar-B-Q Blues — A Tale of Friendship, Partnership, and Deceit

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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

Lathrop GPM

The Franchise Memorandum - Issue 251

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Court Dismisses Ostensible Agency Claim on Motion for Reconsideration - A federal court in California has granted a motion for reconsideration in light of recent Ninth Circuit precedent, reversing the district court’s...more

Lewitt Hackman

FRANCHISOR 101: Finger Lickin’ Restrictions

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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

Lewitt Hackman

FRANCHISEE 101: Special Delivery

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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

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