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Franchise Agreements Class Action

Troutman Pepper

Seventh Circuit Revives McDonald's Employee No-Poach Litigation

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In June of 2022, McDonald’s obtained a judgment on the pleadings, ending antitrust litigation challenging the legality of the no-hire restraints it previously included in its franchise agreements. More than a year later, the...more

Lathrop GPM

Seventh Circuit Reverses Dismissal of Anti-Poaching Class Action Against McDonald’s

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In an important case of first impression that drew amicus participation from the Department of Justice, the Federal Trade Commission, and the International Franchise Association, the Seventh Circuit reversed a judgment in...more

Bilzin Sumberg

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

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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

Kilpatrick

Eleventh Circuit reinstates no-hire antitrust claims against Burger King

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Takeaway: Restrictive covenants have generated a lot of controversy lately, especially with the Department of Justice’s continued focus on illegal no-poach hiring agreements between Silicon Valley companies and other firms. ...more

BakerHostetler

Decision Benefits Franchise Businesses and Finds Alston Bars Challenge to No-Poach Agreements

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In June 2021, the Supreme Court reaffirmed in NCAA v. Alston that antitrust claims under Section 1 of the Sherman Act “presumptively” call for rule-of-reason analysis and that only the rare case merits “quick look” or per se...more

Foley & Lardner LLP

Sixth Circuit Holds Michigan Franchise Investment Law Voids Forum Selection Clause

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The Sixth Circuit has held that a contractual forum-selection clause in a franchise agreement was unenforceable because it violated state law. In Lakeside Surfaces, Inc. v. Cambria Company, LLC, Lakeside Surfaces, a...more

Lewitt Hackman

Franchisor 101: Inhospitable Forum Selection Clause

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A hotel franchisee brought a class action lawsuit in Louisiana federal court on behalf of Louisiana franchisees. The franchisor moved to transfer the action to Georgia, based on the mandatory forum selection clause in the...more

Lathrop GPM

The Franchise Memorandum - Issue #271

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Ninth Circuit Reverses Class Action Settlement Approval and Fee Award - The Ninth Circuit Court of Appeals has reversed the approval of a $10 million voucher settlement and a $2.6 million attorneys’ fee award in a class...more

Lathrop GPM

The Franchise Memorandum - Issue #269

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Two Illinois Federal Courts Deny Class Certification in Anti-Poaching Class Actions Against Franchisors - Two federal courts in Illinois have rejected motions to certify classes of employees who worked in franchised...more

Lathrop GPM

The Franchise Memorandum - Issue # 266

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Welcome to The Franchise Memorandum by Lathrop GPM. Below are summaries of recent legal developments of interest to franchisors. Post-Termination Injunction: Noncompete Covenants - California Federal Court Enforces...more

Constangy, Brooks, Smith & Prophete, LLP

The Cons Of The PRO Act

The Protecting the Right to Organize Act of 2021 (also known as the “PRO Act”) is back with its laundry list of organized labor’s most-wanted government handouts. After decades of declining membership, unions see the PRO Act...more

Bennett Jones LLP

A Clarified Approach to Pure Economic Loss Claims

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In November 2020, the Supreme Court of Canada released its decision in 1688782 Ontario Inc. v Maple Leaf Foods Inc. This is an important decision clarifying the analytical approach to the duty of care analysis in negligence...more

Carlton Fields

Sixth Circuit Affirms Ruling That Arbitrator Is to Determine Arbitrability of Employment Dispute Between Franchise Employees and...

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The plaintiffs filed a class action against Domino’s, alleging that the company’s franchise agreement violated federal antitrust law as well as state law. ...more

Carlton Fields

Sixth Circuit Affirms Ruling That Arbitrator Is to Determine Arbitrability of Employment Dispute Between Franchise Employees and...

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The plaintiffs filed a class action against Domino’s, alleging that the company’s franchise agreement violated federal antitrust law as well as state law. Domino’s moved to compel arbitration, and the plaintiffs opposed on...more

Lewitt Hackman

Franchisor 101: The Wrong Tools to Avoid California Courts

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The Ninth Circuit ruled that a California Matco Tool franchisee, John Fleming, could bring a class action wage and hour suit in California, even though a forum selection clause in the distribution agreement specified Ohio...more

Faegre Drinker Biddle & Reath LLP

Court Denies Class Certification Due to Individualized Issues Regarding Recipients’ Consent to Receipt of Faxes

In E&G, Inc. v. Mount Vernon Mills, Inc., No. 17-0218, 2019 WL 4032951 (D.S.C. Aug. 22, 2019), the District of South Carolina denied class certification because individualized issues—specifically, whether recipients had...more

Bradley Arant Boult Cummings LLP

Ask and You Shall Be Deemed to Have Consented to Receive: The Eleventh Circuit Affirms TCPA Fax Summary Judgment

Consent is the most powerful weapon companies have against TCPA liability, and a recent Eleventh Circuit opinion illustrates how. In Gorss Motels, Inc. v. Safemark Systems, L.P., the Eleventh Circuit affirmed summary judgment...more

Lewitt Hackman

Franchisee 101: Un-Merry Maids

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Employees of a Merry Maids home cleaning franchise brought a class action against the franchisee, the franchisor, its owner and affiliated entities claiming they were joint employers. A California federal district court...more

Searcy Denney Scarola Barnhart & Shipley

United States Judicial Panel on Multidistrict Litigation – January 2019 Hearing Session Preview

The next hearing session of the United States Judicial Panel on Multidistrict Litigation (“JPML”) is scheduled for January 31, 2019 in Miami, Florida. Six matters are set for oral argument to consider motions to transfer each...more

Troutman Pepper

Legal Challenges to No-Poach Provisions in Franchise Agreements

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Over the last 18 months, no-poach provisions in franchise agreements have drawn considerable attention from academics, state attorneys general, politicians, and the class action plaintiffs’ bar. Originally published in...more

Foley & Lardner LLP

Antitrust Scrutiny of No-Poaching Agreements Continues to Pick Up Steam

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To most people, “poaching” is a bad thing, connoting a mix of elephant hunting and mediocre eggs. But in labor and employment—where “poaching” means recruiting away another employer’s talent—antitrust regulators, legislators,...more

Polsinelli

Anti-Poaching Provisions in Franchise Agreements Are Drawing Increased Scrutiny

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Franchise agreements often contain provisions prohibiting the franchisee from soliciting or hiring workers employed by the franchisor or other franchisees. Such “anti-poaching” agreements have recently come under increased...more

Lewitt Hackman

FRANCHISEE 101: Class Not in Session

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In May, the U.S. Supreme Court held that mandatory arbitration agreements containing class action or collective action waivers must be enforced as written....more

Seyfarth Shaw LLP

Franchise “No-Hire” Agreement Class Actions And The Single Enterprise Defense

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Seyfarth Synopsis: There are currently pending at least four class actions claiming that provisions contained in franchise agreements prohibiting the hiring of employees of other intrabrand franchisees without the consent of...more

Lewitt Hackman

Franchise Litigation Rising Over Dietary Considerations

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Rising concerns over food sourcing and preparation is leading to more and more litigation for restaurants and franchises. Most of the lawsuits claim discrimination, which makes sense as many dietary strictures are rooted...more

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