News & Analysis as of

Anti-Competitive Franchises

BCLP

Ban on Online Sales in a Franchise Network: The French Competition Authority Sanctions Franchisor De Neuville

BCLP on

On February 6, 2024, the French Competition Authority ("l'Autorité") fined chocolate producer De Neuville 4 million euros for vertical agreements. This decision is interesting in several respects...more

Quarles & Brady LLP

Seventh Circuit Rejects Dismissal of Franchisee No-Poach Clause Challenge

Quarles & Brady LLP on

In Deslandes v. McDonald’s USA LLC, issued August 25, 2023, the U.S. Court of Appeals for the Seventh Circuit overturned the dismissal of antitrust claims that challenged no-poach clauses in franchise agreements....more

Bilzin Sumberg

Eleventh Circuit Revives Putative Class Action Against Burger King for Violation of Federal Antitrust Laws Based on No-Poaching...

Bilzin Sumberg on

Arrington v. Burger King Worldwide, Inc., No. 20-13561 (11th Cir. Aug. 31, 2022) – In October 2018, a former line cook of a Burger King franchise restaurant in Illinois, filed a class action complaint in the District Court...more

Lewitt Hackman

Franchisor 101: Taking the Red Pill on Non-Competes

Lewitt Hackman on

Franchisors and franchisees in California have long conducted themselves based on precedent that voids post-termination covenants against competition in a franchise agreement in California. Recently, a franchisor’s ability to...more

Lewitt Hackman

FRANCHISOR 101: Not at Liberty to Compete

Lewitt Hackman on

A federal district court in Michigan granted a preliminary injunction in favor of tax preparation franchisor, Liberty Tax Service (JTH Tax, Inc. v. Magnotte, E.D. Mich., ¶16,575), finding it was likely to succeed on its...more

Skadden, Arps, Slate, Meagher & Flom LLP

DOJ Wades Deeper Into No-Poach Advocacy

In early February 2019, the Department of Justice (DOJ) announced its intent to file statements of interest in multiple ongoing private lawsuits to clarify how “no-poach” agreements should be evaluated under the federal...more

Lewitt Hackman

FRANCHISOR 101: Thrust Into Antitrust

Lewitt Hackman on

Jimmy John’s will face antitrust claims, after an Illinois federal judge declined to dismiss allegations in a class action. Plaintiffs claim the chain’s franchise agreement harmed competition by preventing franchisee...more

Troutman Pepper

Fast-Food Chains Agree to End Franchise No-Poach Restrictions

Troutman Pepper on

In order to avoid a lawsuit by the Washington State Attorney General, seven fast-food chains with store locations nationwide agreed to no longer enforce “no-poach/no-hire” provisions in their franchise agreements and to...more

McDermott Will & Emery

Sixth Circuit Tri County Decision Provides Much-Needed Clarity on “Successor” Provision in Ohio Franchise Law

McDermott Will & Emery on

I attach a copy of the US Court of Appeals for the Sixth Circuit’s recent decision in Tri County Wholesale Distributors v. Labatt USA Operating Company, Nos. 15-3710/3769 (6th Cir., July 6, 2016). For students of the...more

Maynard Nexsen

A Franchise Chain's Non-compete Agreement Comes Under Congressional Scrutiny

Maynard Nexsen on

Tremors were felt throughout the franchise community when a recent article in The Huffington Post reported that the Jimmy Johns sandwich franchise is under Congressional scrutiny for its franchisees’ practice of requiring...more

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