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Before committing to a franchise business, consider...
Real estate brokerage franchisor Keller Williams has agreed to a settle claims related to the ongoing broker commission antitrust litigation. Burnett v. National Ass’n of Realtors, Case No. 4:19-CV-00332 (W.D. Mo.), which has...more
A federal court in New Jersey recently declined to issue an order invalidating the class action waiver and arbitration provision used by franchisor The UPS Store, Inc. and certain TUPSS franchisees’ (collectively, TUPSS) and...more
A trademark license may seem straightforward. It is an arrangement that gives a licensee the right to use the licensor’s mark in some manner for some amount of time, with the licensor exercising quality control over the goods...more
The FTC sued fast-food restaurant chain Burgerim, an affiliated entity, and their owner (collectively, “Burgerim”) over allegations that Burgerim used false and misleading promises to sell franchises in violation of the FTC...more
Ninth Circuit Reverses Class Action Settlement Approval and Fee Award - The Ninth Circuit Court of Appeals has reversed the approval of a $10 million voucher settlement and a $2.6 million attorneys’ fee award in a class...more
Welcome to The Franchise Memorandum by Lathrop GPM. Below are summaries of recent legal developments of interest to franchisors. Missouri Federal Court Holds Franchisor Controls Sufficient to Survive Motion to Dismiss...more
A group of franchisees sued OsteoStrong, a franchisor of bone density improvement centers. They claimed omissions in the FDD about bankruptcies and lawsuits, and misrepresentations of patent rights to equipment and...more
Colorado Federal Court Applies Forum Selection Clause to Non-Signatory Entities Controlled by Former Franchisees - A federal court in Colorado held that entities controlled by former franchisees were bound by the forum...more
In This Issue - US Taxation of IP After Tax Reform - U.S. taxation of intellectual property has become astoundingly more complex after the Tax Cuts and Jobs Act. The new rules are so complex that the IRS and Treasury...more
Some creativity can help in passing a former franchised business to the next generation, particularly if the franchisor has no part in the franchisee's succession plan. A federal court in Nebraska preliminarily enjoined...more
A restaurant franchisor, World of Beer Franchising ("WOB"), recently lost an appeal to enforce a post-termination restriction against a franchisee launching a competing business. Both the trial and appellate court ruled...more
In four decisions from the past few months, the Seventh Circuit has staked out positions on several cutting-edge consumer class action issues. See In re: Subway Footlong Sandwich Marketing & Sales Practice Litig., 869 F.3d...more
Seyfarth Synopsis: In In Re Subway Footlong Sandwich Mktg. & Sales Practices Litig., No. 16-1652 (7th Cir. Aug. 25, 2017), the U.S. Court of Appeals for the Seventh Circuit overturned a district court’s approval of a class...more
New Orleans Motel Placed Employee on Unwanted Leave of Absence, Federal Agency Charges - NEW ORLEANS - G6 Hospitality, dba Motel 6, unlawfully placed a pregnant employee on leave solely because of the fact that she was...more
One of the most important considerations New Jersey practitioners encounter when seeking injunctive relief is where to file: state (Chancery Division) versus federal (district) court. In non-emergent complex litigation, this...more
When seeking preliminary injunctive relief to enforce a non-compete, the moving party is often focused on how obvious it is that the defendant breached the parties’ agreement. As 7-Eleven recently learned, however, even when...more