In This Issue:

- Missouri District Court Upholds Termination Of Franchise Based On Fraud:

The United States District Court for the Eastern District of Missouri recently upheld a franchisor’s decision to terminate a group of franchisees that fraudulently concealed the true ownership of their operating company when entering into their franchise agreement.

- Fourth Circuit Affirms District Court’s Decision That Expiration Of A Franchise Agreement Did Not Constitute Termination:

The Fourth Circuit affirmed in part the decision of the Western District of Virginia that certain post-term restrictive covenants did not apply to a former franchisee, finding that the expiration of the franchise agreement did not constitute a termination.

- New Mexico District Court Finds Franchisor May Be Vicariously Liable For Death Of Franchisee’s Employee:

A federal district court in New Mexico held that a franchisor may be liable for its franchisee’s failure to provide a safe working environment after an armed robbery resulted in the death of the franchisee’s employee.

- Court Examines Arbitrability Of Wage Act Claims In The Awuah Dispute:

As part of the continuing saga of Awuah v. Coverall N. Am., Inc., 2013 U.S. Dist. LEXIS 171870 (D. Mass. Dec. 5, 2013), a Massachusetts federal district court recently re- examined the arbitrability of some of the plaintiffs’ state wage claims.

- Court Rejects Challenge To Arbitration Award By Franchisee Who Claimed That Franchisor’s Lawyer Engaged In Unethical Conduct:

In Doctor’s Associates, Inc. v. Windham, 2013 U.S. Dist. LEXIS 546 (Conn. App. Nov. 26, 2013), the Connecticut Court of Appeals found that alleged violations of the Connecticut Rules of Professional Conduct by the franchisor’s lawyers…

- Franchise Dispute Over Advertising Fund Not Subject To Dismissal:

A federal court in Indiana declined to dismiss a breach of contract claim concerning the collection of advertising and marketing funds by the franchisor of a members-only buying club franchise.

- California Court Of Appeal Upholds Order Dissolving Preliminary Injunctive Relief In Favor Of Franchisee:

A California Court of Appeal recently affirmed a trial court’s ruling that subsequent evidence of franchisee misconduct warranted the dissolution of a preliminary injunction.

Please see full Publication below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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