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Lawsuit Dismissed and Franchisor Sanctioned After Court Finds Claims Barred by Prior Arbitration Award

The U.S. District Court for the District of North Dakota granted a franchisee’s motion to dismiss for failure to state a claim and its motion for Rule 11 sanctions, finding that franchisor ABC, Inc. improperly attempted to...more

Third Circuit Affirms Liquidated Damages in Favor of Hospitality Franchisor

The Third Circuit Court of Appeals affirmed summary judgment for a franchisor on a franchisee’s breach of contract claims, finding that the franchise agreement unambiguously granted the franchisor the right to suspend the...more

Ohio Federal Court Rejects Hotel Franchisors’ Pursuit of Indemnification Under Federal Trafficking Statute but Permits State Law...

A federal court in Ohio recently narrowed two hotel franchisors’ attempt to implead their franchisee in a lawsuit under the Trafficking Victims Protection Reauthorization Act (TVPRA). A.S. v. Red Roof Inns, Inc., 2024 WL...more

New Jersey Appellate Court Holds Automotive Retailers Association Has Associational Standing to Assert Claims Under New Jersey...

A New Jersey appellate court, reversing a summary judgment decision, recently held that the New Jersey Coalition of Automotive Retailers, Inc. (the Coalition) had associational standing to bring an action against Ford Motor...more

Illinois Federal Court Grants Franchisor’s Motion to Dismiss Terminated Franchisee’s Fraudulent Misrepresentation and Breach of...

A federal court in Illinois recently dismissed a former franchisee’s counterclaims for alleged fraudulent misrepresentation, breach of contract regarding the franchisor’s advertising fund, and breach of contract and implied...more

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