A federal court in Wisconsin recently denied a haircare product dealer’s motion for summary judgment on its Wisconsin Fair Dealership Law (WFDL) and breach of contract claims against the dealer’s national distributor. Brava...more
A big sigh of relief for franchisors: the FTC’s new rule prohibiting non-compete covenants will not apply to the franchisor-franchisee relationship.
As expected by many, yesterday the FTC adopted sweeping new...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
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
The Eleventh Circuit Court of Appeals recently affirmed in part, and vacated in part, a district court’s issuance of an injunction preventing a franchisor’s enforcement of a noncompete covenant as written but allowing...more
1/19/2024
/ Blue Pencil Contract Modification ,
Contract Term ,
Contract Terms ,
Employment Litigation ,
Enforceability ,
Franchises ,
Franchisors ,
Geographic Markets ,
Non-Compete Agreements ,
Partial Reversal ,
Public Interest ,
Restrictive Covenants
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 Tenth Circuit has ruled in favor of KFC in a dispute with a franchisee alleging a breach of the implied covenant of good faith and fair dealing. Kazi v. KFC US, LLC, 2023 WL 4983119 (10th Cir. Aug. 4, 2023)....more
In a case involving an unorthodox procedural posture, a federal court in Oregon determined that nonsignatory franchisee owners are not subject to a franchise agreement arbitration provision. Goergen v. Black Rock Coffee B.,...more
An appellate court in Louisiana recently affirmed summary judgment in favor of a franchisor, dismissing negligence and premises liability claims asserted by a customer was injured on unauthorized exercise equipment. Flynn v....more
The United States Supreme Court recently issued its long-awaited opinion clarifying what qualifies as an “autodialer” and is therefore governed by the Telephone Consumer Protection Act of 1991 (TCPA), potentially providing...more
With the expansion of the Coronavirus (COVID 19) domestically and internationally, it is a prudent time for franchisors to plan for potential disruptions related to the spread of the virus and lessen the burden on affected...more