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
The Second Circuit recently affirmed the dismissal of claims under the New York Franchised Motor Vehicle Dealer Act and various contract claims. Garrand Bros. LLC v. Am. Honda Motor Co., 2024 WL 4691004 (2d Cir. Nov. 6,...more
The California Court of Appeals upheld a decision finding that a Texas court had personal jurisdiction over California franchisees. GlobalCFO LLC v. Venkataramanappa, 2024 WL 4220439 (Cal. Ct. App. Sept. 18, 2024)....more
10/14/2024
/ Business & Professions Code ,
Franchise Agreements ,
Franchisee ,
Franchises ,
Franchisors ,
Motion to Vacate ,
Non-Compete Agreements ,
Non-Disclosure Agreement ,
Permanent Injunctions ,
Personal Jurisdiction ,
Venue
In July 2024, the National Labor Relations Board (NLRB) withdrew its appeal of a March 2024 federal district court decision striking down the NLRB’s 2023 joint employer rule. In that decision, the Eastern District of Texas...more
A federal court in Washington recently granted in part and denied in part a former distributor’s partial motion to dismiss claims for breach of a post-termination noncompete agreement, breach of the implied duty of good faith...more
A state appellate court in California reversed a superior court’s denial of a massage franchisor’s motion to compel arbitration. Jane Doe #1 (I.G.) v. Massage Envy Franchising, LLC, 2023 WL 8801517 (Cal. Ct. App. Dec. 20,...more
A federal court in Washington denied the State of Washington’s motion to dismiss an out-of-state distiller’s constitutional challenge to Washington’s distillery regulatory scheme. Shady Knoll Orchards & Distillery LLC v....more
12/11/2023
/ Constitutional Challenges ,
Distilleries ,
Dormant Commerce Clause ,
Interstate Commerce ,
Motion to Dismiss ,
Out-of-State Companies ,
Regulatory Oversight ,
State Constitutions ,
Twenty-First Amendment ,
Washington ,
Wine & Alcohol
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 Tennessee determined that a binding contract existed between a sales representative and CWS Powder Coatings Company governing the percentage of commissions to be paid to the representative for sales to...more
A federal court in Michigan recently denied a franchisor’s motion to dismiss claims alleging that it was liable as a joint employer for claims under Title VII of the Elliott-Larsen Civil Rights Act, Michigan’s state...more
6/13/2023
/ Economic Realities Test ,
Employer Liability Issues ,
Franchisee ,
Franchises ,
Franchisors ,
Hostile Environment ,
Joint Employers ,
Motion to Dismiss ,
Retaliation ,
Sexual Harassment ,
Title VII
A federal court in Tennessee denied a dealer’s motion to dismiss a supplier’s declaratory judgment action because it was unclear whether a CEO’s departure was a “substantial” change in ownership that would establish good...more
A state appellate court in New York recently held a franchisor was not entitled to unpaid royalty fees because of its own breach of a franchise agreement reinstated by preliminary injunction. Integrity Real Estate Consultants...more
3/9/2023
/ Appeals ,
Attorney's Fees ,
Breach of Contract ,
Contract Terms ,
Franchise Agreements ,
Franchisee ,
Franchises ,
Franchisors ,
Preliminary Injunctions ,
Reversal ,
Royalties
A federal court in Massachusetts has denied a franchisor’s summary judgment motion which sought attorneys’ fees related its defense of previously dismissed claims. Patel v. 7-Eleven, 2023 WL 35357 (D. Mass Jan. 4, 2023)....more
A California appellate court recently affirmed a trial court’s ruling that a customer had not agreed to arbitrate claims against a franchisor when she was presented with a “Terms of Use Agreement” at a franchised location....more