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Motion to Dismiss Franchisee

Lewitt Hackman

Franchisee 101: Lights, Camera, Jurisdiction

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A federal district court in Texas denied an individual defendant’s motion to dismiss for lack of personal jurisdiction, finding the defendant—the owner of the company that was granted a franchise—was bound in his individual...more

Lathrop GPM

New York Federal Court Grants Hotel Franchisors’ Motion to Dismiss for Lack of Jurisdiction on Negligence Claims

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A federal court in New York recently granted a motion to dismiss for lack of personal jurisdiction in an action asserting claims that franchisor Hyatt Corporation acted with negligence in connection with assaults to guests...more

Foley & Lardner LLP

Federal Court Holds That Franchisee’s Owner Can Be Individually Bound by Franchise Agreement

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In Alamo Intermediate II Holdings, LLC. v. Birmingham Alamo Movies, the U.S. District Court for the Western District of Texas, denied franchise owner Hunter Renfroe’s motion to dismiss for lack of personal jurisdiction. The...more

Lewitt Hackman

Franchisee 101: The Price is Right - What Payments Establish a Franchise Relationship?

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A Massachusetts district court granted a product supplier’s motion to dismiss a distributor’s counterclaims that the supplier violated state franchise sales and consumer protection laws. The court found the distributor did...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

Lewitt Hackman

Franchisor 101: Salon Franchisor Weaved into Joint Employment Claims

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A Michigan federal district court denied a franchisor’s motion to dismiss claims under Title VII of the Civil Rights Act of 1964 and Michigan law, and claims alleging retaliatory termination and sexually hostile work...more

Lathrop GPM

Michigan Federal Court Denies Franchisor’s Motion to Dismiss Claims of Sexually Hostile Work Environment and Retaliatory...

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A federal court in Michigan recently denied a franchisor’s motion to dismiss claims alleging that it was liable as a joint employer for claims under Title VII of the Elliott-Larsen Civil Rights Act, Michigan’s state...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

Lewitt Hackman

Franchisor 101: Pizza Franchisor’s Release Overcooked

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A federal district court denied a pizza franchisor’s motion to dismiss a former franchisee’s complaint, finding the former franchisee sufficiently pleaded the franchisor coerced the franchisee into signing a general release....more

Lathrop GPM

Tennessee Federal Court Grants Franchisor’s Motion to Dismiss Claims for Negligent Hiring of Franchisee

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A federal court in Tennessee recently granted a franchisor’s motion to dismiss claims alleging that a franchisor was liable for a workplace mass shooting by a franchisee. Fernald v. JFE Franchising, Inc., 2023 WL 2938312...more

Lathrop GPM

Delaware Bankruptcy Court Grants Motion to Dismiss Time-Barred Claims for Breach of Franchise Agreement

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A federal bankruptcy court in Delaware has dismissed time-barred claims that a Chapter 7 Trustee alleged on behalf of a bankrupt franchisor, AVF Franchising, LLC, against several of its franchisees. In re Start Man Furniture,...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

Lewitt Hackman

Franchisee 101: Subject Matter Mania…

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A federal court in Florida dismissed an action by franchisees against their franchisor for lack of subject-matter jurisdiction. The franchisees asserted claims under California and Florida laws alleging the franchisor, OR...more

Lewitt Hackman

Franchisor 101: No Tax on Renewals

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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

Franchisee 101: Real Estate Amendment Not Up to Interpretation

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A franchisee sued real estate franchisor Century 21 for a declaration whether the franchisee could end its franchise agreement early despite a provision that deleted the franchisee’s early termination right. Noting the...more

Lewitt Hackman

Franchisee 101: A Franchisor Without Urgency

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A federal court in Alabama denied an urgent care franchisee’s motion to dismiss a suit brought by its franchisor. The franchisee argued the franchise agreement required suits to be brought within a one-year period. But the...more

Lewitt Hackman

Franchisee 101: Corralled Franchise Claims

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A federal court has granted, in part, restaurant franchisor Golden Corral’s motion to dismiss a complaint brought by a former franchisee. The court found a general release of claims, executed as part of an assignment of a...more

Lewitt Hackman

Franchisee 101: If it Walks Like a Franchise, Talks Like a Franchise, it Might Be a Franchise

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Twin City Lodging LLC bought a Best Western Hotel in Mankato, Minnesota, then entered into a “Membership Agreement” with Best Western International. Best Western granted Twin City a license to operate the hotel under Best...more

Lewitt Hackman

Franchisee 101: Over Supply of Gasoline Burns Potential Sale

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A gasoline franchisee defeated a motion to dismiss brought by its franchisor, seeking to avoid a claim under the federal Petroleum Marketing Practices Act (PMPA). In 2018, Global Companies (Global) sent the franchisee a...more

Skadden, Arps, Slate, Meagher & Flom LLP

'Titans' of Antitrust Policy Clash Over No-Poach Agreements

Legal battles over the antitrust treatment of no-poach agreements continue to escalate with new district court decisions and new pronouncements from two “titans” of antitrust policy, the Department of Justice (DOJ) and the...more

Lewitt Hackman

Franchisor 101: Hot Doggin' Franchisee Sales Pitches

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Hot dog franchisor, Charlie Graingers, was unable to obtain dismissal of a federal lawsuit brought by franchisees alleging fraud, misrepresentation and breach of fiduciary duty....more

Lewitt Hackman

FRANCHISOR 101: Thrust Into Antitrust

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Jimmy John’s will face antitrust claims, after an Illinois federal judge declined to dismiss allegations in a class action. Plaintiffs claim the chain’s franchise agreement harmed competition by preventing franchisee...more

Holland & Knight LLP

Food and Beverage Law Update: September 2018

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Labor and Employment - Jimmy John's Avoids Joint-Employer Finding in Worker Overtime Litigation - In In re: Jimmy John's Overtime Litigation, 2018 WL 3231273 (N.D. Ill. June 14, 2018), a federal district court ruled that...more

Lewitt Hackman

FRANCHISEE 101: Cold Brew Remedy

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Beer distributors can be on common footing with their franchisee counterparts in bargaining with brewers or suppliers. Depending on the jurisdiction, distributors may have protection through beer distribution statutes...more

Lewitt Hackman

FRANCHISEE 101: Pay Attention to Contractual Statutes of Limitation

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Many franchise agreements include a contractual limitation period or time limit when parties can bring a claim for relief. Though the franchise agreement is often written by and for the franchisor, these limitations can help...more

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