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
A federal district court in Indiana held that a forum selection clause in the franchise agreement prevailed over a competing forum selection clause in the personal guaranty....more
A federal appellate court held that a forum selection clause requiring litigation to be in the jurisdiction where the franchisor’s principal place of business was located when the action was brought is enforceable.
A...more
A federal district court in California granted a franchisor’s motion to transfer venue of claims brought by non-California franchisees to Texas. The ruling was based on a forum selection clause in the franchise agreements....more
A federal appellate court declined to enforce a choice-of-forum clause finding enforcement would conflict with Michigan’s Franchise Investment Law (“MFIL”).
Lakeside Surfaces, Inc., a maker of stone countertops, sued...more
A hotel franchisee brought a class action lawsuit in Louisiana federal court on behalf of Louisiana franchisees. The franchisor moved to transfer the action to Georgia, based on the mandatory forum selection clause in the...more
A federal court in Connecticut ruled against an urgent care franchisor’s motion to dismiss, finding the plaintiff had standing to sue under Article III of the U.S. Constitution. The court still dismissed the plaintiff’s...more
4/29/2021
/ Article III ,
Choice-of-Law ,
Dismissals ,
Forum Selection ,
Franchise Acts ,
Franchise Agreements ,
Franchisors ,
Goods or Services ,
Sherman Act ,
Standing ,
Successor Interests
The Ninth Circuit ruled that a California Matco Tool franchisee, John Fleming, could bring a class action wage and hour suit in California, even though a forum selection clause in the distribution agreement specified Ohio...more
2/3/2020
/ Anti-Waiver Provisions ,
Appeals ,
Arbitration Agreements ,
Class Action ,
Forum Selection ,
Franchise Agreements ,
Franchise Laws ,
Franchisee ,
Franchisors ,
Independent Contractors ,
Misclassification ,
Private Attorneys General Act (PAGA) ,
Sales & Distribution Agreements ,
Severability Doctrine ,
State Labor Laws ,
Wage and Hour
A California Court of Appeal held that courts should not enforce forum selection clauses in contracts that also contain a jury waiver. For franchisors that have California franchisees, this ruling could complicate the ability...more
11/26/2019
/ Appeals ,
Burden of Proof ,
Burden-Shifting ,
Choice-of-Law ,
Conflicts of Laws ,
Contract Terms ,
Forum Selection ,
Franchise Agreements ,
Franchisee ,
Franchisors ,
Jury Waivers ,
Unenforceable Contract Terms
Rob & Bud's Pizza ("R&B") is a Papa Murphy's franchisee and owns and operates multiple Papa Murphy's Take 'n' Bake Pizza restaurants in Arkansas, Missouri and Kansas. In April 2014, R&B and other Papa Murphy's franchisees...more
A federal court in New Jersey upheld a franchise agreement's forum selection clause in favor of hotel franchisor Ramada Worldwide Inc. and denied a Minnesota hotel franchisee's motion to dismiss the complaint, or...more
A federal court in Sacramento recently upheld a franchisor's forum selection clause and transferred an action brought by an area representative to the federal district court in the Western District of Texas....more
A recent decision in Allegra Holdings, LLC v. Davis demonstrates that courts are enforcing forum selection clauses in favor of out-of-state franchisors and against in-state franchisees, notwithstanding franchise anti-waiver...more
Competitors of all kinds know home court advantage helps them win. Home court advantage refers to the psychological, procedural and logistical edge gained by competing in a familiar setting, where one has better knowledge of...more