Franchise Civil Remedies

Read need-to-know updates, commentary, and analysis on Franchise issues written by leading professionals.
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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

March 2015 Independent Contractor Compliance and Misclassification News Update

This past month’s headline developments involve three major developments in the area of independent contractor (IC) misclassification. The first case involves a large department store that agreed to pay most of the costs of...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

Oklahoma Chicken Express Franchiser to Pay $15,000 to Settle EEOC National Origin Discrimination Suit

Restaurants Exploited Class of Hispanic Cooks by Failing to Pay Overtime, Federal Agency Charged - OKLAHOMA CITY, Okla. - NSC Chicken, LP, dba Chicken Express, will pay $15,000 and furnish other relief to settle a...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

Restrictions in Franchise Agreements Narrowly Construed

Virginia’s public policy in favor of freedom of contract is well established. It may be most conspicuously evidenced by the Supreme Court of Virginia’s increasingly narrow construction of post-contract employment restrictions...more

Mister Softee vs. Master Softee: Non-Compete & Trademark Ice Cream Fight in the SDNY

Dimitrios Tsirkos first became a Mister Softee franchisee in the mid 1980’s. To be clear, we are talking about the ice cream truck business. Over the years, Tsirkos entered several franchise agreements with Mister Softee and...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

Trials Are About Truth; Consent Decrees Are About Pragmatism

I recently wrote about Judge Rakoff’s refusal to enter the SEC’s proposed consent decree in SEC v. Citigroup Global Markets, Inc., 827 F. Supp. 2d 328 (SDNY 2011) – and the shift in SEC enforcement policy that it prompted. ...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

Padgett Business Services Goes After Former Franchisee for Trademark Infringement

Smallbizpros, Inc., d/b/a Padgett Business Services (“Padgett”)asserts trademark infringement in connection with allegations of post-termination obligations of John A. Terris, Sr. (“Terris”) of Brunswick, Georgia, in its...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

Credit and Debit Card Payment Regulations and Laws

Legal Alert – Credit and Debit Card Payment Regulations and Laws Introduction To curb money laundering, corruption and tax evasion, the Nigerian apex regulatory Bank, the Central Bank of Nigeria (“CBN”) has continued...more

NJ BPU Affirms OAL Decision Denying Municipality the Right to Compete in Existing Franchise Area

Update - In August 2013, the New Jersey Board of Public Utilities (the Board) issued an order affirming an initial decision of the New Jersey Office of Administrative Law (OAL), which estopped the Borough of Woodland...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

Carrols Corp. To Pay $2.5 Million to Settle EEOC Sexual Harassment and Retaliation Lawsuit

89 Women To Benefit From Settlement With World's Largest Burger King Franchisee - NEW YORK - Carrols Corporation, the world's largest Burger King franchisee, will pay $2.5 million and take significant remedial steps to...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

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