The Supreme Court of Texas recently ruled that franchisor Massage Heights did not owe a duty of care to a massage customer who alleged a sexual assault, because, among other reasons, Massage Heights had neither the...more
6/9/2025
/ Business Litigation ,
Duty of Care ,
Employment Litigation ,
Franchise Agreements ,
Franchisee ,
Franchises ,
Franchisors ,
Negligence ,
Right to Control ,
Sexual Assault ,
TX Supreme Court
A federal court in Massachusetts recently granted, in part, a Motion for Preliminary Injunction as to enforcement of franchise agreement noncompete covenants but denied the motion as to claims of trademark infringement,...more
5/2/2025
/ Breach of Contract ,
Confidential Information ,
Contract Disputes ,
Employment Litigation ,
Franchise Agreements ,
Franchises ,
Intellectual Property Litigation ,
Non-Compete Agreements ,
Non-Solicitation Agreements ,
Preliminary Injunctions ,
Restrictive Covenants ,
Trademark Infringement ,
Trademarks
A federal court in Ohio recently granted, in part, defendants’ motion to dismiss various TVPRA claims and denied their motion to transfer in a suit concerning alleged sex trafficking at two Red Roof Inn locations in Virginia...more
3/10/2025
/ Choice-of-Venue ,
Dismissals ,
Employer Liability Issues ,
Federal Court Litigation ,
Franchises ,
Hotels ,
Jurisdiction ,
Motion to Dismiss ,
Motion to Transfer ,
Sex Trafficking ,
Vicarious Liability
The Federal Trade Commission recently sued PepsiCo, Inc. alleging that the company engaged in illegal price discrimination by providing a large retailer with unfair pricing advantages in violation of the Robinson-Patman Act....more
2/18/2025
/ Antitrust Provisions ,
Antitrust Violations ,
Enforcement Actions ,
Federal Trade Commission (FTC) ,
PepsiCo ,
Price Discrimination ,
Product Pricing ,
Resale Price Maintenance (RPM) ,
Robinson-Patman Act ,
Unfair Competition ,
Unfair or Deceptive Trade Practices ,
Unfair Pricing ,
Wal-Mart
A federal court in Minnesota recently granted franchisor Snap Fitness Inc.’s motion for preliminary injunction against an out-of-state franchisee that announced its intentions to open a competing gym during the term of the...more
A federal court in Virginia recently ruled that it had federal question subject matter jurisdiction over a Defend Trade Secrets Act (DTSA) claim, rejecting Defendants’ argument that a foreign bankruptcy proceeding stayed the...more
An Illinois federal court recently denied a motion by Southern Glazer Wine and Spirits, LLC and Republic National Distributing Company, LLC (RNDC) to dismiss various claims for violations of state and federal antitrust and...more
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
A Michigan bankruptcy court recently granted debtor/franchisee Empower Central Michigan Inc.’s motion to reject a franchise agreement as an executory contract but found that a non-compete clause and a related confidentiality...more
A federal court in Texas has denied Penthol’s claim for breach of contract against Vertex Energy for the improper sale of competing products in violation of noncompete clause. Penthol, LLC v. Vertex Energy Operating, LLC,...more
A Virginia federal court recently granted a motion to dismiss all six counts of a franchisor's complaint against a competing former franchisee for failure to plead with specificity under the Defend Trade Secrets Act of 2016...more
On March 8, 2024, a Texas federal court struck down the National Labor Relations Board's new 2023 joint employer rule, which was set to go into effect on March 11, 2024. Chamber of Commerce of the United States of America, et...more
A federal court in Tennessee recently granted a franchisor’s motion to compel arbitration, including as to questions of arbitrability, in response to a 15 count complaint brought by 54 separate franchisees. Anthony v. Van...more
The First Circuit Court of Appeals recently certified to the Massachusetts Supreme Court the question of whether franchisee plaintiffs in an ongoing case pass the threshold inquiry under the state’s three-prong employee...more
10/10/2023
/ 7-Eleven ,
Contract Terms ,
Employment Litigation ,
Franchise Agreements ,
Franchisee ,
Franchises ,
Independent Contractors ,
MA Supreme Judicial Court ,
Misclassification ,
Putative Class Actions ,
Wage and Hour
A federal court in North Carolina recently dismissed a complaint brought by Bigelow Corporation against its franchisor Hound Town USA because the claims were time barred. Bigelow Corporation v. Hounds Town USA, LLC, 2023 WL...more
9/8/2023
/ Affirmative Defenses ,
Breach of Contract ,
Contract Termination ,
Contract Terms ,
Franchise Agreements ,
Franchisee ,
Franchises ,
Franchisors ,
Fraud ,
Statute of Limitations ,
Time-Barred Claims
A Louisiana Federal court recently dismissed a complaint brought by Tesla against the Louisiana Automobile Dealers Association (LADA) and other associated dealerships and commissioners for various competition and...more
A federal court in Michigan granted a motion to dismiss claims that franchisor Bateel International, LLC had violated the Michigan Franchise Investment Law and the Texas Business Opportunity Act. Luxury Concepts, Inc. v....more
6/12/2023
/ Breach of Contract ,
Contract Terms ,
Dismissals ,
Forum Non Conveniens ,
Franchise Agreements ,
Franchisee ,
Franchises ,
Franchisors ,
Motion to Dismiss ,
Personal Jurisdiction ,
United Arab Emirates (UAE)
Reflecting a shifting national landscape on restrictive covenants, the Minnesota Legislature recently adopted legislation that prohibits franchisors from placing certain nonsolicitation and no-poach restrictions in franchise...more
A federal court in New York recently upheld an arbitration award, rejecting an argument that the arbitrator had improperly applied Puerto Rico law. Conmed Corp. v. First Choice Prosthetic & Orthopedic Serv., 2023 WL 157957...more
A federal court in Arizona recently denied preliminary relief enforcing franchisees’ noncompete provisions against nonsignatories to the franchise agreement because the franchisor failed to present sufficient evidence that...more