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Faegre Drinker Biddle & Reath LLP

Minnesota Supreme Court Holds the Minnesota Franchise Act Does Not “Categorically Preclude” Enforcement by Out-of-State...

On September 11, 2024, the Minnesota Supreme Court issued an opinion holding that the Minnesota Franchise Act (MFA) does not “categorically preclude an out-of-state company from enforcing a claim for unfair practices” under...more

Foley & Lardner LLP

Manufacturer Acted Reasonably in Terminating a Franchisee for Failure to Abide by Agreement

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Tasty Baking Company (“Tasty”), a manufacturer of prepackaged goods, terminated Distefano, Inc. (“Distefano”), Maryland-based owner of a franchise with rights to sell Tasty products in a prescribed area called a “route.”...more

Lathrop GPM

Michigan Federal Court Grants Franchisor’s Motion for Preliminary Injunction Against Former Restoration Service Franchisee

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A federal court in Michigan has granted a franchisor’s motion for preliminary injunction against former franchisees for violating the franchise agreements’ post-termination noncompete provisions. 1-800 Water Damage Int’l LLC...more

Lathrop GPM

Michigan Precedent on Michigan Franchise Investment Law Held to Trump Inconsistent Sixth Circuit Precedent on Private Right of...

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A federal court in Michigan recently granted several related franchisors’ motions to dismiss a franchisee’s claims for violations of the Michigan Franchise Investment law. Benjamin Franklin Franchising SPE LLC v. David...more

Lathrop GPM

Appellate Court in Pennsylvania Affirms Ruling on Gas Station Franchisor’s Indemnification Claims

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A state appellate court in Pennsylvania recently affirmed a trial court’s summary judgment ruling addressing a franchisor’s claims for indemnification in a personal injury dispute. Sunoco (R&M), LLC v. Pa. Nat'l Mut. Cas....more

Lathrop GPM

Washington Federal Court Grants Home Healthcare Services Franchisor’s Motion to Compel Arbitration in Accordance with the...

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A federal court in Washington recently granted a motion brought by franchisor Nurse Next Door Home Healthcare Services, Inc. (NND) to compel arbitration of a Florida-based franchisee’s claims. Nurse Next Door Home Healthcare...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Massachusetts Supreme Judicial Court Clarifies Franchisee vs. Employee Classification

In the ever-evolving landscape of employment law, a recent Massachusetts Supreme Judicial Court (SJC) opinion, Patel v. 7-Eleven, Inc., has shed light on a critical question: When is a franchisee considered an employee of the...more

Foley & Lardner LLP

Franchisee Claims for Promissory Estoppel and Violations of the Michigan Franchise Investment Law Fail

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A recent court decision explained the circumstances under which a plaintiff may assert a claim for promissory estoppel and whether a private right of action exists for a certain alleged violation of the Michigan Franchise...more

Morgan, Brown & Joy, LLP

Supreme Judicial Court Rules That Typical Franchise Operators Are Independent Contractors, Not Employees

On September 5, 2024, the Massachusetts Supreme Judicial Court (“SJC”) held that 7-Eleven franchisees operating in a “typical” franchisor-franchisee relationship were independent contractors and not “employees” of 7-Eleven,...more

Morgan Lewis

FTC Expands Its Focus on Franchising Regulation with New Policy Statement and Staff Guidance

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The Federal Trade Commission (FTC) on July 12, 2024 released a policy statement warning that the use of contract provisions that prohibit franchisees from communicating with the government about legal violations are unlawful....more

Orrick, Herrington & Sutcliffe LLP

FTC reminds industries of its enforcement of the Franchisee Rule

On July 12, the FTC released a new policy statement, staff guidance, and an issue spotlight about allegedly unfair and deceptive practices by franchisors. The policy statement addressed the FTC’s concerns that franchisees...more

Lathrop GPM

FTC Takes Action Impacting the Franchise Relationship

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On Friday, July 12, 2024, the Federal Trade Commission (“FTC”) published an analysis of the information it received in response to its Request for Information related to  franchisors’ business practices, launched in March...more

Troutman Pepper

The FTC Intervenes in Franchise Relationships

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The U.S. Federal Trade Commission's (FTC) latest policy statement aims to dictate the outcome of contract negotiations between franchisors and their franchisees and to limit the potential negative impact on franchisees of...more

Lathrop GPM

New York Federal Court Concludes Interim Arbitration Order Is Final and Confirms the Order Requiring Franchisor’s Payments to...

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A federal court in New York recently ruled that an interim arbitration order was final and granted a developer’s petition to confirm the order which required the franchisor to make payments to the developer while the...more

Lathrop GPM

Michigan Court of Appeals Affirms Dismissal of Certain Franchisee Claims Against Franchisor Due to Release of Liability and...

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The Michigan Court of Appeals recently affirmed a trial court’s dismissal of certain claims by franchisees Red Fit, LLC and Cali Red, LLC against franchisor Red Effect International Franchise, LLC based on a release of...more

Lathrop GPM

Minnesota State Court Grants Franchisor’s Motion for Preliminary Injunction Enjoining Franchisee from Violating Post-Termination...

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A state trial court in Minnesota granted Renters Warehouse USA, LLC’s motion for a temporary injunction, and enjoined Life Property Managers, LLC (LPM) from violating its post-termination obligations and a covenant not to...more

Lathrop GPM

California Federal Court Dismisses Discrimination and Tortious Interference Claims Brought Against Car Manufacturer and Its...

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A federal court in California granted two motions to dismiss for failure to state a claim in an action asserting discrimination and tortious interference claims against Volvo Car USA and its franchisee Haron Motor Sales, Inc....more

Skadden, Arps, Slate, Meagher & Flom LLP

FAQs About the FTC’s Broad New Ban on Noncompetes

When the Federal Trade Commission (FTC) issued its long-awaited final rule banning virtually all noncompete clauses between workers and employers, it also published 500-plus pages of commentary....more

Kilpatrick

3 Key Takeaways | Is Franchising Doomed? The 2024 Version

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On June 12, Kilpatrick’s Marc Lieberstein, Franchise and Licensing Partner, and Chris Caiaccio, Labor and Employment Counsel, spoke for Celesq, a leading provider of legal education, on the topic of whether franchising was...more

Lathrop GPM

Illinois Federal Court Denies Cross Motions for Summary Judgment on Breach of Contract and Guaranty Claims Due to Ambiguity in the...

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A federal court in Illinois recently denied cross motions for partial summary judgment as to franchisor 360 Painting, LLC’s claims for breach of contract by painting franchisee R. Sterling Enterprises, Inc. (RSE), and breach...more

Lathrop GPM

California Federal Court Grants Retail Franchisor’s Motion to Compel Arbitration and Dismisses Action

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A federal court in California recently granted a motion brought by a franchisor and two of its employees to compel arbitration and dismiss an action alleging violations of the California Franchise Investment Law, breach of...more

Lathrop GPM

Colorado Federal Court Denies Franchisee’s Motion to Dismiss on the Basis of Forum Non Conveniens Based on Forum Selection Clause...

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A federal court in Colorado denied WD Ventures, LLC’s motion to dismiss for forum non conveniens pursuant to the forum selection clause in the parties’ franchise agreement indicating that the parties contemplated federal...more

Lathrop GPM

New York Federal Court Grants Hotel Franchisors’ Motion to Dismiss for Lack of Jurisdiction on Negligence Claims

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A federal court in New York recently granted a motion to dismiss for lack of personal jurisdiction in an action asserting claims that franchisor Hyatt Corporation acted with negligence in connection with assaults to guests...more

Foley & Lardner LLP

Federal Court Holds That Franchisee’s Owner Can Be Individually Bound by Franchise Agreement

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In Alamo Intermediate II Holdings, LLC. v. Birmingham Alamo Movies, the U.S. District Court for the Western District of Texas, denied franchise owner Hunter Renfroe’s motion to dismiss for lack of personal jurisdiction. The...more

Whiteford

Client Alert: Franchise Sales Likely to Get New Level of Regulation Over Third-Party Sellers

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A bill passed by the California Senate on May 22, 2024, Senate Bill No. 919 (“Bill 919”), will address a gap in the regulation of franchise sales – namely, a lack of transparency regarding the role and background of...more

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