News & Analysis as of

Franchisee Royalties Breach of Contract

Foley & Lardner LLP

Franchisee Claims for Promissory Estoppel and Violations of the Michigan Franchise Investment Law Fail

Foley & Lardner LLP on

A recent court decision explained the circumstances under which a plaintiff may assert a claim for promissory estoppel and whether a private right of action exists for a certain alleged violation of the Michigan Franchise...more

Lathrop GPM

Illinois Federal Court Denies Cross Motions for Summary Judgment on Breach of Contract and Guaranty Claims Due to Ambiguity in the...

Lathrop GPM on

A federal court in Illinois recently denied cross motions for partial summary judgment as to franchisor 360 Painting, LLC’s claims for breach of contract by painting franchisee R. Sterling Enterprises, Inc. (RSE), and breach...more

Lathrop GPM

California Court of Appeals Affirms Rejection of Reverse Royalty Damages in a Breach of Contract Action by Franchisee

Lathrop GPM on

An appellate court in California has affirmed a trial court’s rejection of more than $4 million in lost business profits, which appellant Glen Suh alleged in a breach of contract action against franchisor Boba Time, Inc. Suh...more

Lathrop GPM

New York Appellate Court Dismisses Royalties Claim Because of Franchisor’s Breach Under Preliminary Injunction

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A state appellate court in New York recently held a franchisor was not entitled to unpaid royalty fees because of its own breach of a franchise agreement reinstated by preliminary injunction. Integrity Real Estate Consultants...more

Lewitt Hackman

Franchisor 101: No Tax on Renewals

Lewitt Hackman on

A federal court in Virginia denied tax franchisor, Liberty Tax’s, motion to dismiss complaints by two of its area developers (“ADs”). The ADs claimed Liberty Tax breached their contract for wrongfully terminating, failing to...more

Lewitt Hackman

Franchisor 101: Defaults Sink Bathroom Remodel Franchisee

Lewitt Hackman on

On competing motions for a temporary restraining order (“TRO”) by ReBath – a nationwide bathroom remodeling franchisor, and its terminated franchisee, ReBath prevailed in restraining the ex-franchisee’s further operations. A...more

Lewitt Hackman

Franchisee 101: Convenience Store Pays for Inconvenient Ordinance

Lewitt Hackman on

A federal court in New Jersey denied a 7-Eleven franchisee’s motion for a temporary restraining order. The franchisee sought an order enjoining 7-Eleven from enforcing various franchise agreement provisions, including charges...more

Lewitt Hackman

FRANCHISEE 101: Cannabiz Accounting

Lewitt Hackman on

Tax service franchisor, H&R Block, was recently vindicated in having terminated a franchisee for violating an in-term non-compete covenant. A United States District Court granted the franchisor summary judgment in Devore v....more

Lewitt Hackman

FRANCHISEE 101: Offer Too Little Too Late

Lewitt Hackman on

A Florida federal district court found that a doughnut franchisee's failure to pay royalties and other fees constituted a material breach of contract justifying termination, even though the franchisee expressed a willingness...more

Lewitt Hackman

FRANCHISEE 101: What to Do About Franchisor’s Harmful New Policies

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Franchisees aren't always excited when their franchisor introduces a new policy. But if a new policy overreaches and might doom a franchisee's business, can it be stopped before it starts?...more

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