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Franchisor 101: Pieces of the Trademark Pie

An Illinois federal district court granted partial summary judgment in a trademark dispute against Ledo Pizza System, Inc. (“System”) and Ledo Pizza Carryouts, Ltd. (“Carryouts”), a franchisor of pizza restaurants...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

IP Gets “Modernized” In Stimulus Bill

Embedded within the 5,600-page Consolidated Appropriations Act, 2021 – more commonly known as the $2.3 trillion Coronavirus Relief Stimulus Bill enacted on December 27, 2020 – are significant changes to federal trademark and...more

Franchisee 101: COVID Defense Leads to Contempt

A federal court in Tennessee held a Gus’s World Famous Fried Chicken former franchisee in contempt for failure to deidentify its restaurant after entry of a temporary restraining order and consent to a permanent...more

Franchisee 101: Successor Slips Out of Non-Compete

A Florida federal court granted a preliminary injunction against a terminated franchisee. The court enjoined the ex-franchisee from using the franchisor’s trademarks and trade dress. The court enforced the franchisor’s...more

Franchise 101: The Differences Between Franchises and Other Business Arrangements

Under California law, a business relationship is a “franchise” if: (1) the business will be substantially associated with the franchisor’s trademark; (2) the franchisee will directly or indirectly pay a fee to the franchisor...more

Franchisee 101: Trademark Licensee's Rights Survive "Rejection" of Agreement in Bankruptcy

On May 20, 2019, the U.S. Supreme Court ruled that a bankrupt debtor’s “rejection” of a trademark licensing agreement does not terminate the licensee’s rights. This was under a part of the Bankruptcy Code that provides for...more

Franchisor 101: Franchisor Fails to Escape State’s Changed Tax Interpretation

A state appellate court (“Court”) in New Mexico upheld a decision by the state’s Taxation and Revenue Department (“Department”) that royalties paid to out-of-state franchisors are subject to the state’s gross receipts tax...more

FRANCHISEE 101: Til Expiration Do Us Part

Though an individual owner and operator of a formerly franchised Church's Chicken restaurant in Texas was not a signer of the franchise agreement, a district court ruled the individual was subject to the agreement's...more

Franchisor 101: Copycat Restaurant Shutdown

A registered trademark is a valuable corporate asset and can be a significant part of a company's worth. A franchisor has an affirmative legal duty to police use of its mark by licensed franchisees and also third-party...more

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