3 Key Takeaways | Is Franchising Doomed? The 2024 Version
One Month to More Effective Compliance on Business Ventures - Day 19 - Franchisor Compliance
Is Franchising Doomed?
Strategies for Negotiating with a Franchisee and Franchisor
Day 20 of One Month to More Effective Compliance for Business Ventures-Franchisor Liability
Mandelbaum Barrett PC secured a significant victory defending a class action lawsuit filed against Retro Fitness gym franchises throughout New Jersey. After ten years of litigation, a favorable decision from the Appellate...more
A federal court in California recently granted a franchisor’s motion to dismiss a class action suit alleging discrimination in violation of the Americans with Disabilities Act (ADA). Garland v. Dunkin’ Donuts, LLC, 2024 WL...more
A federal court in North Carolina denied a hotel franchisor’s motion to dismiss a customer’s breach of contract claim. Brittian v. Extended Stay America, 2024 WL 1841600 (W.D. N.C. Apr. 26, 2024)....more
A federal court in Maryland recently granted a motion for class certification by consumers who brought negligence, breach of contract, and consumer protection claims against hotel franchisor Marriott International and data...more
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
Three industries suffered setbacks last month in independent contractor misclassification cases, while another targeted industry targeted scored a success. As we have reported in many prior blog posts, class action lawyers...more
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
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
In 2017, four former franchisees brought a class action in California, claiming 7-Eleven owed them unreimbursed expenses. The ex-franchisees claimed they were employees, not independent contractors of 7-Eleven. The court...more
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
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
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
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
Seyfarth Synopsis: The third key trend from our 16th Annual Workplace Class Action Litigation Report involves governmental enforcement litigation, including an overview of priorities and filings by the EEOC, the U.S....more
Sunday’s release of a long-awaited Labor Department final rule on joint employment spells trouble for workers hoping to “sue large companies for wrongdoing by contractors or franchisees.” The rule reverses Obama-era policies...more
Our quarterly report takes a look back at the most significant class action developments over the last year, including litigation trends, court decisions, and legislative and regulatory changes that are certain to invite...more
Seyfarth Synopsis: The Ninth Circuit’s recent decision in Salazar v. McDonald’s Corporation is welcome news for entities facing concerns about joint employment status under California law, and in particular, for franchisors....more
In a win for franchisors, the Ninth Circuit recently affirmed the district court’s summary judgment in favor of fast-food behemoth McDonald’s Corp., ruling that the franchisor is not a joint employer of its franchisees’...more
In a case that should grab the attention of franchisors across the country, a panel of the US Court of Appeals for the Ninth Circuit has ruled that McDonald’s Corporation is not the joint employer of the employees of a...more
In an important wage-and-hour decision for franchisors, Salazar, et al. v. the McDonald’s Corp., et al., the Ninth Circuit Court of Appeals ruled that employees of one of the hamburger giant’s California-based franchisees...more
There were several notable court and administrative cases over the past two months, but they were overshadowed by a legislative matter: the enactment of Assembly Bill 5 in California, which was the subject of our September...more
On Thursday, March 7, the Antitrust Division intervened in three antitrust class actions to urge the court that no-poach agreements between vertically related firms, such as between franchisor and franchisee, should be...more
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
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