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Franchisor 101: Farsighted Vision for System Changes

An Ohio federal court granted a franchisor’s motion to dismiss a putative class of franchisees alleging antitrust violations and related claims, including interference to deflate franchisees’ reimbursement rates. Other class...more

Franchisee 101: When the Competition Leaks

A Massachusetts federal court granted a franchisor’s request to enforce the franchise agreement’s post-termination non-compete provision against a terminated franchisee....more

Franchisor 101: Convenient Franchise Practices

A New Jersey federal district court granted summary judgment in favor of 7-Eleven, Inc. in a dispute with a franchisee. The franchisee signed a franchise agreement to operate a 7-Eleven store in Princeton, New Jersey,...more

Franchisee 101: Muscling Through the Competition

A Minnesota district court issued a preliminary injunction against a former franchisee who engaged in a competing business during the franchise relationship. Snap Fitness, Inc., a gym franchisor, entered into a franchise...more

Franchisee 101: Kicking Injunctions to the Curb

A Kansas district court denied a franchisor’s motion for preliminary injunction against its former franchisee who engaged in competing businesses immediately after terminating the franchise relationship....more

Franchisee 101: No Spice; No Injunction

A Colorado federal court denied a franchisor’s request for preliminary injunction that would enforce a non-compete provision against a former franchisee. The franchisor of spice and tea shops known as Spice & Tea Merchants...more

Franchisor 101: Non-Performance – Fact or Fiction?

A New Jersey federal court granted in part a hotel franchisor’s motion for summary judgment against its franchisee and the guarantor of the personal guaranty, for breach of the parties’ franchise agreement. The franchisee did...more

Franchisee 101: Lights, Camera, Jurisdiction

A federal district court in Texas denied an individual defendant’s motion to dismiss for lack of personal jurisdiction, finding the defendant—the owner of the company that was granted a franchise—was bound in his individual...more

Franchisor 101: All-Franchisor-Can-Eat

A federal district court in New Jersey recently found that restaurant franchisor Golden Corral was entitled to nearly $1.2 million in consequential damages after terminating a franchised Golden Corral restaurant....more

Franchisee 101: Extra Cheesed Franchisee

A federal district court in Texas denied a preliminary injunction filed by a franchisee (“EYM”) after Pizza Hut, as franchisor, terminated the franchise agreements....more

Franchisee 101: Braking The Competing Business

A Massachusetts federal district court enforced a non-compete provision in a franchise agreement to enjoin former franchisees from operating a different branded automotive business at the same location as the former...more

Franchisor 101: Getting Away With Tax (Franchisor) Evasion

A Pennsylvania federal court refused to enforce non-competition and non-solicitation covenants in a franchise agreement of a nationwide tax preparation service franchisor. The court dismissed the franchisor’s request for...more

Franchisee 101: Leaky Forum Selection for Roofing Franchisor

A federal district court in Indiana held that a forum selection clause in the franchise agreement prevailed over a competing forum selection clause in the personal guaranty....more

Franchisor 101: Liquidated Damages, 30 Minutes or Less

A Michigan district court held a franchisee breached its obligations under its franchise agreements and upheld the liquidated damages clause in the agreements....more

Franchisee 101: An UnBakeable Non-Compete

A Minnesota federal court denied cookie dough franchisor Cookie Dough Bliss Franchising’s motion for a temporary restraining order and preliminary injunction against a former Minnesota franchisee and its owners....more

Franchisee 101: Blown Dry by the Competition

A Minnesota bankruptcy court granted Fantastic Sams a preliminary injunction against a former Fantastic Sams franchisee, finding the operation of four new hair salons by the former franchisee was prohibited by enforceable...more

Franchisor 101: A Broad Brush Addendum

A Virginia district court dismissed a lawsuit filed by 360 Painting, a franchisor of residential and commercial painting services, concluding an addendum to the parties’ franchise agreement precluded 360 Painting’s claims for...more

Franchisor 101: Pizza Franchisor’s Release Overcooked

A federal district court denied a pizza franchisor’s motion to dismiss a former franchisee’s complaint, finding the former franchisee sufficiently pleaded the franchisor coerced the franchisee into signing a general release....more

Franchisor 101: Court Hits Brakes on Former Franchisees

An Ohio appellate court upheld the state trial court’s decision to grant a permanent injunction against two former franchisees of an auto body shop franchise working for a competitor in violation of the franchise agreement’s...more

Franchisor 101: Promises to Prospectives

A federal district court in New Jersey denied Travelodge Hotels’ motion for partial summary judgment against a former franchisee, holding there are genuine issues of fact as to Travelodge’s breach of contract claims....more

Franchisor 101: A Tasty Appeal

The Eleventh Circuit Court of Appeals reversed a district court’s summary judgement order, granting a chocolate shop franchisor’s breach of contract and unfair competition claims. The appellate court concluded there were...more

Franchisee 101: Transaction Totaled

Franchisee Cipercen, LLC operated several Meineke Car Care Centers. By 2017, Cipercen owed $550,000 in unpaid franchise fees to Meineke and decided to sell the franchises. Cipercen believed Meineke offered to waive the unpaid...more

Franchisor 101: No Repairing Delayed Filing

A New Jersey federal court denied a franchisor’s motion for preliminary injunction against a franchisee due to franchisor’s 11 month delay in bringing the motion. Franchisee entered into two franchise agreements with H-1 Auto...more

Franchisor 101: Transfer DQ’d

A federal court in Wisconsin ruled that Dairy Queen did not breach a 1952 franchise agreement with a franchisee by requiring a prospective buyer of the franchise to sign an updated franchise agreement. Dairy Queen and a...more

Franchisee 101: Subject Matter Mania…

A federal court in Florida dismissed an action by franchisees against their franchisor for lack of subject-matter jurisdiction. The franchisees asserted claims under California and Florida laws alleging the franchisor, OR...more

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