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.

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