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Franchise Civil Remedies

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

Manufacturer Acted Reasonably in Terminating a Franchisee for Failure to Abide by Agreement

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Tasty Baking Company (“Tasty”), a manufacturer of prepackaged goods, terminated Distefano, Inc. (“Distefano”), Maryland-based owner of a franchise with rights to sell Tasty products in a prescribed area called a “route.”...more

Foley Hoag LLP

Massachusetts Supreme Judicial Court Rules 7-Eleven Franchisees Are Not Employees

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On September 5, 2024, the Massachusetts Supreme Judicial Court (“SJC”) ruled in Patel v. 7-Eleven that 7-Eleven franchisees are not employees of the franchisor under the independent contractor statute. The SJC looked beyond...more

Lathrop GPM

Ohio Appellate Court Reverses Summary Judgment Holding Regarding Applicability of Area Representative Agreement to Individuals

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An Ohio appellate court, reversing a summary judgment decision, recently held that the “full-time efforts” section of an Area Representative Agreement was applicable only to the area representative entity and not the...more

Lathrop GPM

Michigan Federal Court Grants Franchisor’s Motion for Preliminary Injunction Against Former Restoration Service Franchisee

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A federal court in Michigan has granted a franchisor’s motion for preliminary injunction against former franchisees for violating the franchise agreements’ post-termination noncompete provisions. 1-800 Water Damage Int’l LLC...more

Lathrop GPM

Michigan Precedent on Michigan Franchise Investment Law Held to Trump Inconsistent Sixth Circuit Precedent on Private Right of...

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A federal court in Michigan recently granted several related franchisors’ motions to dismiss a franchisee’s claims for violations of the Michigan Franchise Investment law. Benjamin Franklin Franchising SPE LLC v. David...more

Lathrop GPM

Appellate Court in Pennsylvania Affirms Ruling on Gas Station Franchisor’s Indemnification Claims

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A state appellate court in Pennsylvania recently affirmed a trial court’s summary judgment ruling addressing a franchisor’s claims for indemnification in a personal injury dispute. Sunoco (R&M), LLC v. Pa. Nat'l Mut. Cas....more

Lathrop GPM

Virginia Federal Court Rules It has Subject Matter Jurisdiction Over DTSA Claim Because Foreign Bankruptcy Proceeding Only Stayed...

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A federal court in Virginia recently ruled that it had federal question subject matter jurisdiction over a Defend Trade Secrets Act (DTSA) claim, rejecting Defendants’ argument that a foreign bankruptcy proceeding stayed the...more

Lathrop GPM

Washington Federal Court Grants Home Healthcare Services Franchisor’s Motion to Compel Arbitration in Accordance with the...

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A federal court in Washington recently granted a motion brought by franchisor Nurse Next Door Home Healthcare Services, Inc. (NND) to compel arbitration of a Florida-based franchisee’s claims. Nurse Next Door Home Healthcare...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Massachusetts Supreme Judicial Court Clarifies Franchisee vs. Employee Classification

In the ever-evolving landscape of employment law, a recent Massachusetts Supreme Judicial Court (SJC) opinion, Patel v. 7-Eleven, Inc., has shed light on a critical question: When is a franchisee considered an employee of the...more

Proskauer - Tax Talks

California Franchise Tax Board (FTB) to Apply Market-Based Sourcing Rules to Nonresident Directors of California Based...

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On Monday, September 9, 2024, the California FTB approved proposed amendments to California’s personal income tax code. This proposed rule would impose California income tax on non-resident/non-employee corporate...more

Foley & Lardner LLP

Franchisee Claims for Promissory Estoppel and Violations of the Michigan Franchise Investment Law Fail

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A recent court decision explained the circumstances under which a plaintiff may assert a claim for promissory estoppel and whether a private right of action exists for a certain alleged violation of the Michigan Franchise...more

Seyfarth Shaw LLP

New York Joins States Permitting Dealers To Claim Warranty Reimbursement Using Third Party Labor Time Guides - Seyfarth's Future...

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On September 4, 2024, New York Gov. Kathy Hochul signed into law an amendment to New York’s warranty reimbursement statute, N.Y. Veh. & Traf. Law § 465, requiring manufacturers to compensate dealers for labor using the...more

Morgan, Brown & Joy, LLP

Supreme Judicial Court Rules That Typical Franchise Operators Are Independent Contractors, Not Employees

On September 5, 2024, the Massachusetts Supreme Judicial Court (“SJC”) held that 7-Eleven franchisees operating in a “typical” franchisor-franchisee relationship were independent contractors and not “employees” of 7-Eleven,...more

Polsinelli

Court Rules that the FTC Rule Banning Non-Competition Clauses in Employment Agreements is Unlawful and Order Has “Nationwide...

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On August 20, 2024, the Northern District of Texas in the case of Ryan, LLC v. Federal Trade Commission granted summary judgment to the Plaintiff Ryan, LLC, enjoining the FTC from implementing its rule banning non-compete...more

Lewitt Hackman

Franchisee 101: Non-Compete Jumpstarted in Bankruptcy

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A Michigan bankruptcy court held that a debtor-franchisee seeking to reject a franchise agreement for an auto repair center could not reject either a stand-alone confidentiality agreement with the franchisor or the...more

Lewitt Hackman

Franchisor 101: Charging Toward Arbitration

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A California federal court granted a motion to compel arbitration by retail franchisor Batteries Plus and its two executives, and dismissed a franchisee’s action alleging violations of the California Franchise Investment Law,...more

Akerman LLP

Leisure Law Insider (Vol. 3) - Summer 2024

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Welcome to the third edition of The Leisure Law Insider! Released quarterly, we cover the latest news and developments in leisure and hospitality law, regulation, and policy. Expect content on hotels, franchising, labor and...more

Seyfarth Shaw LLP

Fifth Circuit Set to Weigh Challenge to FTC’s CARS Rule - Seyfarth's Future of Automotive Series

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The administrative challenge brought by the National Automobile Dealers Association (NADA) and another trade association against the Combating Auto Retail Scams (“CARS”) Trade Regulation Rule, issued last year by the Federal...more

Seyfarth Shaw LLP

FTC Continues Aggressive Enforcement Actions To Deter Deceptive Pricing Practices By Car Dealers - Seyfarth's Future of Automotive...

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On Thursday, August 15, 2024, the Federal Trade Commission (FTC) and Arizona Attorney General announced a $2.6 million settlement to resolve claims that Coulter Motor Company used deceptive online advertising to lure...more

Freeman Law

Texas Franchise Tax Basics | Nexus

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If you own a business in Texas, you’ve likely encountered (for better or worse) the Texas franchise tax. The franchise tax is a tax imposed on any “taxable entity” that does business in Texas or that is chartered or...more

Mandelbaum Barrett PC

Victory in a Decade-Long Battle Against Retro Fitness Class Action

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Mandelbaum Barrett PC secured a significant victory defending a class action lawsuit filed against Retro Fitness gym franchises throughout New Jersey. After ten years of litigation, a favorable decision from the Appellate...more

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

Lewitt Hackman

Franchisor 101: All-Franchisor-Can-Eat

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A federal district court in New Jersey recently found that restaurant franchisor Golden Corral was entitled to nearly $1.2 million in consequential damages after terminating a franchised Golden Corral restaurant....more

Davis Wright Tremaine LLP

Warns Franchisors Against Unfair Practices and Spotlights Risks in Franchising

The FTC administers the federal franchise sales law, which requires all franchisors engaged in franchise sales in the United States to deliver a franchise disclosure document (FDD) to their prospective franchise buyers unless...more

Parker Poe Adams & Bernstein LLP

NLRB Waves White Flag on Expansion of Joint Employer Definition

Last week, the National Labor Relations Board withdrew its appeal of a federal court decision that blocked its 2023 rule that significantly expanded the definition of joint employment under federal labor law....more

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