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Franchise Civil Remedies

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

Navigating The Private Right Of Action Under The California Franchise Investment Law

by Mulcahy LLP on

The California Franchise Investment Law (“CFIL”) regulates both the sale and disclosure of franchise opportunities within the state. The law was enacted to “provide each prospective franchisee with the information necessary...more

FRANCHISEE 101: Cold Brew Remedy

by Lewitt Hackman on

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

FRANCHISEE 101: McDonald's Shaking Damages for OT Policy

by Lewitt Hackman on

In Los Angeles Superior Court, McDonald's claimed victory when 6,600 workers seeking $41 million in back pay and penalties came away with less than 2% of the amount sought in a claim that the fast-food giant cheated them out...more

FRANCHISEE 101: Contract Curveballs

by Lewitt Hackman on

In every Franchise Agreement, the franchisor and franchisee promise to fulfill obligations to the other. For some promises, whether or not they were performed can be a clear "yes" or "no." For example: either a franchisee...more

FRANCHISEE 101: Technical Disclosure Violations

by Lewitt Hackman on

The consequences to an unwitting franchisor can be severe when it fails to provide disclosure documents required by franchise law. Most franchise laws provide for rescission of the franchise agreement, allowing the franchisee...more

Don’t Read This: 2016 Workplace Law Year In Review

by Fisher Phillips on

Reverse psychology isn’t the only explanation for the title of this article (although, if you’ve made it this far, it seems to have worked). No, another explanation is that 2016 was a very rough year for employers when it...more

THANKSGIVING EDITION [FROM THE ARCHIVES]: Court Protects Quizno’s Franchise Turkey Trade Secrets

This Thanksgiving, Trade Secrets Watch is serving a delicious tale about protecting trade secrets in a franchising relationship. In 1994, Quizno’s entered into a franchise agreement with Robert Kampendahl, an...more

FRANCHISOR 101: Original Content Needed to Protect Ops Manuals

by Lewitt Hackman on

An important part of the franchise system is the confidential operating manual. Many franchisors claim protection of operating manuals under the law of trade secrets and copyright. Keeping the contents confidential is...more

Motel 6 Sued By EEOC for Pregnancy Discrimination

New Orleans Motel Placed Employee on Unwanted Leave of Absence, Federal Agency Charges - NEW ORLEANS - G6 Hospitality, dba Motel 6, unlawfully placed a pregnant employee on leave solely because of the fact that she was...more

FRANCHISEE 101: How Far Do Earnings Projections Go?

by Lewitt Hackman on

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

District Court: CFPB May Hold Law Firm Owners Individually Liable for Alleged Violations

by Holland & Knight LLP on

The U.S. District Court for the Western District of Wisconsin ruled on July 20, 2016, that the Consumer Financial Protection Bureau (CFPB) may hold the owners of two law firms offering debt relief services liable for alleged...more

Notice of Rights Enhances Trade Secret Protection

by LeClairRyan on

In order to access the full range of remedies the Defending Trade Secrets Act of 2016 (DTSA) offers, a trade secret owner must notify employees and contractors of certain rights they have under the DTSA....more

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

by Lewitt Hackman on

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

New Tool to Protect Franchisors’ Trade Secrets

by LeClairRyan on

On May 11, 2016, President Obama signed into law the Defending Trade Secrets Act of 2016 (the Act). The Act amends the Economic Espionage Act of 1996 (EEA) to create a federal private right of action for the misappropriation...more

FRANCHISOR 101: Protecting Interests in Preliminary Injunctions

by Lewitt Hackman on

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

by McDermott Will & Emery on

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

by Field Law on

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

Rulings Pose Obstacles to Franchisors Seeking to Stop Wrongful Trademark Use

by LeClairRyan on

A series of recent Circuit Court decisions has made it more difficult for a franchisor to enjoin a former franchisee from using the franchisor’s federally registered trademarks after the franchise agreement has been...more

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

by Lewitt Hackman on

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

Subway franchise sued by EEOC for disability discrimination

Sheridan, IN. Employee Fired After Disclosing His HIV Status, Federal Agency Charges - INDIANAPOLIS - KAY QSRS, Inc. d/b/a Subway, violated federal law by firing an employee after the employee disclosed his disability to...more

FRANCHISOR 101: Florida Franchisor Awarded Lost Future Profits

by Lewitt Hackman on

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

by Carlton Fields on

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

by Lewitt Hackman on

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

by DLA Piper on

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!

by Baker Donelson on

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

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