Civil Remedies Franchise General Business

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FRANCHISEE 101: How Far Do Earnings Projections Go?

A franchisor is allowed to make "financial performance representations" in its disclosure documents. These figures may project how much money a franchisee is likely to make and can play a critical part in the franchisor's...more

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

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

FRANCHISOR 101: Protecting Interests in Preliminary Injunctions

A franchisor in a termination dispute with a franchisee may request a preliminary injunction to force the franchisee to immediately stop operating the franchised business and using the franchisor's trademarks and intellectual...more

Ohio Court of Appeals Upholds a Successor Manufacturer’s Termination of a Distribution Franchise

The “successorship” provision of Ohio’s franchise law for alcohol beverages has spawned much litigation over the past two decades. Premium Beverage Supply, Ltd. v. TBK Production Works, Inc. represents the latest chapter of...more

What Happens When a Franchise Agreement Ends - Part Three: Rescission

In our previous posts (See Part 1 and Part 2), we reviewed restrictive covenants and cancellation rights under franchise laws. In a recent decision of the Ontario Court of Appeal, the dispute focused on the right of...more

FRANCHISEE 101: "Two Wrongs Don't Make a Right"

At one time or another, many people have occasion to be renters who feel mistreated by a landlord. This may be due to delays in repairs, responses, or just turning on the heat. A typical reaction is the temptation to...more

FRANCHISOR 101: Florida Franchisor Awarded Lost Future Profits

An arbitration panel in Florida found that a disaster recovery and remediation business franchisee breached his agreement with John Woods, his franchisor, by terminating the agreement 13 years before expiration of the 20-year...more

Eighth Circuit Upholds Arbitration Agreement In Absence Of Actual Proof Of Unconscionability Due To Cost

The Eighth Circuit affirmed a decision by the U.S. District Court for the Eastern District of Missouri which rejected the contention that an arbitration agreement was unconscionable, and unenforceable under the Federal...more

FRANCHISEE 101: Pay Now or Pay Later – Liquidated Damages & Future Royalties

Super 8 Worldwide, Inc. v. Anu, Inc. serves as a reminder to franchisees that, in general, courts will hold franchisees and their guarantors liable to their franchisors for losses suffered when franchisees abandon their...more

Franchisors in Québec have the implied obligation to protect and enhance the brand: the Dunkin’ Donuts case

In a unanimous decision, the Québec Court of Appeal has upheld the decision of the Superior Court which found that a franchisor must take reasonable measures to protect and enhance the value and reputation of its brand. Thus,...more

Georgia Supreme Court to Franchisees: Read Your Contracts!

In July 2001, sisters Michele and Lorraine Reymond approached the defendant, franchisor Legacy Academy, Inc., about the purchase of a daycare franchise to be located in suburban Atlanta. The sisters testified that Legacy...more

Using the Economic Loss Rule to Your Client's Benefit

All lawyers can benefit from having a toolbox of general legal knowledge with which to frame a case to their client's advantage. For business attorneys the economic loss rule is a particularly useful tool. At its...more

Backlash Against Jimmy John’s Non-Compete Agreement Highlights Risks of Overzealous Business Protection Measures

The submarine sandwich franchise Jimmy John’s has come under fire recently following the publication of a broad non-compete agreement that it has allegedly required rank-and-file employees to sign. The non-competition...more

For Convenience Store Chains in Georgia, Leasing Business Operations to Separate Entity Can Maximize Recovery in Condemnations

In Georgia, when a convenience store chain both owns and operates a location, it should lease business operations to a separate legal entity to maximize recovery in the event of a partial condemnation. In limited...more

Ice Cream Maker No Softee When It Comes to Infringement of Its Trademarks

Just as summer is coming to a close, the battle between Mister Softee and Master Softee appears to be heating up. Mister Softee is a family-owned business that has been in operation since 1956. It is the franchisor for the...more

Some Days, A Stay Is Easier to Obtain Than Others

In A&F Enterprises v. IHOP Franchising LLC, 742 F.3d 764 (Seventh Cir. 2014), Chapter 11 debtors appealed a determination that their building leases were deemed rejected because they were not timely assumed. Both the...more

Focused on Franchise Law - June 2014

FRANCHISEE 101: Unsigned Franchise Agreement Binds Franchisee's Shareholder - Texas Appeals Court recently held in Pritchett v. Gold's Gym Franchising, LLC that a Texas forum-selection clause in a Franchise Agreement...more

Rainbow International Seeks Restoration Of Exclusive Use Of Its Marks

On April 9, 2014, Rainbow International LLC ("Rainbow International"), of Waco, Texas, filed a complaint in the Middle District of Georgia against Brian Whitley, Patricia Whitley, and Quick Whits, Inc. d/b/a "Rainbow...more

What Happens When a Franchise Agreement Ends, Part 1: Restrictive Covenants

A “Pet Valu” franchisee in Ontario claimed that sales were declining, so she terminated the Franchise Agreement. After termination of the agreement, her husband established a competing “Pet Stuff” business nearby. When a...more

Franchisors Must Act Quickly to Obtain Injunctive Relief on Non-Competition Covenants

A recent case from the United States Court of Appeals for the Eighth Circuit reaffirms the important principle that a franchisor, or any business, that seeks a preliminary injunction to prevent harm from a covenant breach...more

Focused on Franchise Law - April 2013

In This Issue: Barry Kurtz and Bryan Clements Featured in Bar Association Publications; Franchisor 101:Out of Control - Franchisor Not Liable For Franchisee's Negligence; and, Franchisee 101: Improper Termination May Be A...more

Focused on Franchise Law - January 2013

In This Issue: - Mark Melton Has Become Of Counsel To The Firm - Franchisor 101: Personal Liability In New York For A Franchisor's Owners - Franchisee 101: Beer & Wine Franchisees Enjoy Protection From...more

Unique Circumstances in Litigation Franchise Class Actions (Revised)

This is an update of an article I first presented with David Sterns in 2011 at the Canadian Institute 12th Annual National Forum on Class Actions Litigation in Toronto, Canada. The other co-authors are Geoff Grove of Osler,...more

Strategic Ouster of Hotel Operators: If You Can't Stop It, Discourage It

Do owners and operators drive the legal structure of hotel management agreements? They should, but some courts have concluded that principles of agency trump the bargain struck by sophisticated, well-represented parties that...more

Franchising vs. Licensing – the Illegal Franchise Dilemma

Think you may have bought an illegal, disguised franchise that's called a license or something else? Or are you a company looking to expand and have been told to go with inexpensive licensing instead of expensive franchising?...more

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