A recent decision from the Connecticut Appellate Court highlights how commission‑based fuel arrangements can limit franchise liability when suppliers retain control over pricing and inventory. In Branford Quick Mart, LLC v....more
The independent contractor test under the Fair Labor Standards Act (FLSA), which determines whether an individual is classified as an employee or an independent contractor, has started to resemble a ping-pong match — over the...more
3/3/2026
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Department of Labor (DOL) ,
Employer Liability Issues ,
Fair Labor Standards Act (FLSA) ,
Federal Labor Laws ,
Independent Contractors ,
Labor Reform ,
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Regulatory Reform ,
Rulemaking Process ,
Trump Administration ,
Wage and Hour
A federal district court in Wisconsin recently denied a manufacturer’s motion to dismiss a dealer’s claims for violations of the Wisconsin Fair Dealership Law. The case offers insights into how the WFDL can apply to their...more
A federal court recently dismissed employment discrimination claims against a franchisor asserted by its franchisees’ employee after holding that the employee failed to allege facts sufficient to establish that she was an...more
A recent federal court decision underscores courts’ willingness to enforce clear language in franchise agreements imposing reasonable post-termination obligations on franchisees held to be in breach....more
A federal court recently granted a third-party supplier’s motion to dismiss a franchisee’s lawsuit, holding that the franchisee was not an intended third-party beneficiary of the contract between the supplier and the...more
On September 10, 2025, a bipartisan group in the U.S. House of Representatives introduced the American Franchise Act (H.R. 5267). The proposal would directly amend the National Labor Relations Act (NLRA) and the Fair Labor...more
The Fifth Circuit Court of Appeals has opened the door to a broad interpretation of the Texas Fair Practices of Equipment Manufacturing, Distributors, Wholesalers, and Dealers Act (the “Dealers Act”), finding “equipment”...more
In the era of globalization, companies are increasingly reliant on complex international supply chains to design, manufacture, and distribute their products. These extended partnerships—with contract manufacturers, component...more
Scion Hotels LLC appealed a federal district court’s ruling regarding the non-renewal of a franchise agreement under the New Jersey Franchise Practices Act (NJFPA). The United States Court of Appeals for the Third Circuit’s...more
A federal court recently denied a dealer’s request for preliminary injunction to halt the termination of a dealership agreement with a manufacturer of liquor control systems. The dealer’s acts and omissions during the...more
6/30/2025
/ Appeals ,
Breach of Contract ,
Business Litigation ,
Contract Disputes ,
Contract Termination ,
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Non-Compete Agreements ,
Preliminary Injunctions
A federal court recently denied a franchisor’s motion to dismiss a workplace-abuse lawsuit filed by its franchisee’s employee because the employee stated a claim upon which relief could be granted under Federal Rule of Civil...more
On May 2, 2025, the Texas Supreme Court held that a franchisor owes no duty of care for injuries caused by a franchisee’s employee unless the franchisor retained or exercised control over the hiring of that employee....more
A federal court recently granted in part and denied in part a franchisor’s motion to enjoin the post-termination activities of its former franchisees and two related entities. Rooterman, LLC is a plumbing services franchisor....more
6/23/2025
/ Business Litigation ,
Confidential Information ,
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Franchise Agreements ,
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Restrictive Covenants ,
Trademark Infringement
A federal district court recently enforced a forum selection clause in National Equipment Dealers, LLC v. IROCK Crushers LLC, transferring the case to Ohio and confirming the enforceability of venue clauses in commercial...more
A federal court recently enjoined a franchisor from terminating a franchise agreement or interfering with a franchisee’s operations pending the resolution of the franchisor’s motion to transfer venue....more
Dispute resolution provisions in franchise agreements often address how, when, and where parties will mediate. However, the enforceability of these provisions can change depending on the law of the state governing the...more
The Eighth Circuit recently applied a novel, broad reading of the Missouri Franchise Act granting franchise protection to distributors which previously would not likely have been considered franchisees....more
On May 1, 2025, the Wage and Hour Division (“WHD”) of the U.S. Department of Labor (“DOL”) issued a Field Assistance Bulletin stepping back from a restrictive independent contractor rule issued under the Biden...more
On May 1, 2025, the Wage and Hour Division (WHD) of the U.S. Department of Labor (DOL) issued a Field Assistance Bulletin stepping back from a restrictive independent contractor rule issued under the Biden administration — a...more
5/13/2025
/ Department of Labor (DOL) ,
Enforcement Actions ,
Enforcement Guidance ,
Federal Labor Laws ,
Franchisors ,
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State Labor Laws ,
Wage and Hour
Effective June 1, 2025, the U.S. Small Business Administration (SBA) will reinstate its Franchise Directory, a critical development for franchise systems and franchisees seeking SBA financing. Originally launched in 2018 and...more
5/7/2025
/ Financial Institutions ,
Franchise Agreements ,
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In OTG New York, Inc. v. Ottogi America, Inc., OTG was the exclusive regional distributor for food company Ottogi from 2008–23, during which Ottogi shipped inventory to OTG’s New Jersey warehouse. In 2024, Ottogi terminated...more
Decozen Chrysler Jeep Corp. (“Decozen”), a New Jersey-based automobile dealership, filed a lawsuit against Fiat Chrysler Automobiles, LLC (“FCA”), in U.S. District Court for the District of New Jersey alleging that FCA...more
4/11/2025
/ Antitrust Violations ,
Automotive Industry ,
Breach of Contract ,
Contract Disputes ,
Dealerships ,
False Claims Act (FCA) ,
Franchise Agreements ,
Franchise Laws ,
Fraud ,
Manufacturers ,
Misrepresentation ,
Motion to Dismiss ,
Unfair Competition
A key term of any franchise agreement is the venue selection clause as this page has previously explained.
This issue was at the forefront of Convenience Stores Leasing & Management, LLC’s (“CSLM”) August 2024 suit...more
A recent federal court decision in T&T Management, Inc. v. Choice Hotels, Inc. underscores key contractual and operational considerations for franchisors. T&T filed suit in U.S. District Court for the District of Minnesota...more
3/27/2025
/ Acquisitions ,
Breach of Contract ,
Contract Terms ,
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Motion to Dismiss ,
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