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Federal Court Enforces Forum Selection Clause in Dealer Dispute with Equipment Manufacturer

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

Stick to the Status Quo: TRO Stops Franchisor from Terminating Franchise Agreement Pending Motion to Transfer

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

Actions Speak Louder Than Words: A Franchise Relationship Can Exist in Spite of a Contract’s Express Terms to the Contrary

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

Court Relies on Contractual Terms to Dismiss Dealership Suit Against Auto Manufacturer

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

Permissive Forum Selection Clause Is Not Enforceable in Franchisor’s Suit Against Franchisee

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

Clear Terms of Franchise Agreement Are Enforced Against Franchisee

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

Franchisor Enforces Its Trademark Rights Against Former Prospective Franchisee

A franchisor may pursue claims for declaratory and injunctive relief for potential trademark infringement against a former prospective franchisee even though the prospect never actually used the marks in question. Grainier...more

Manufacturer Acted Reasonably in Terminating a Franchisee for Failure to Abide by Agreement

Tasty Baking Company (“Tasty”), a manufacturer of prepackaged goods, terminated Distefano, Inc. (“Distefano”), Maryland-based owner of a franchise with rights to sell Tasty products in a prescribed area called a “route.”...more

Franchisee Claims for Promissory Estoppel and Violations of the Michigan Franchise Investment Law Fail

A recent court decision explained the circumstances under which a plaintiff may assert a claim for promissory estoppel and whether a private right of action exists for a certain alleged violation of the Michigan Franchise...more

Federal Court Protects Franchisor’s Rights Pursuant to Clear Terms of Franchise Agreement

In Bank United, NA v. GC of Vineland, LLC, Karen and William Scism and GC Vineland, LLC (“GVC”) (collectively the “Scism Parties”) filed a complaint in the U.S. District Court for the District of New Jersey against Golden...more

LeTip World Franchise LLC v. Long Island Social Media Group LLC

In LeTip World Franchise LLC v. Long Island Social Media Group LLC, the U.S. District of Court for the District of Arizona granted a temporary restraining order in favor of a franchisor, LeTip World Franchise LLC (“LeTip”)...more

Federal District Court Offers Broad Ruling on a Franchisor and Individual Officer’s Motion to Dismiss

A franchisee, Functional HIIT Fitness, has filed suit in U.S. District Court in the Eastern District of Michigan against a franchisor, F45 Training Incorporated, and five of its officers: Adam Gilchrist, Robert Deutsch, Marc...more

Court Looks at What a Franchise Is Under the Minnesota Franchise Act

In Louis Degidio, Inc. v. Industrial Combustion, LLC, Louis Degidio, Inc. (Degidio) and Louis Degidio Services, Inc. (Degidio Services) sued Industrial Combustion, LLC (IC), a manufacturer of “institutional boiler system”...more

Federal Court Deals with Personal Jurisdiction and Choice of Law Issues

In Luxury Concepts, Inc. v. Bateel International, LLC, a franchisee, Luxury Concepts, Inc. (LCI), sued a retail outlet and e-commerce franchisor, Bateel International LLC (Bateel), as well as multiple Bateel directors in...more

Real Estate Case Serves as a Reminder About Adherence to the Terms of a Franchise Agreement—Until a Court Permits Otherwise

In Integrity Real Estate Consultants v. Re/Max of New York, Inc., a franchisee, Integrity Real Estate Consultants (“Integrity”), sued a real estate service provider franchisor, Re/Max of New York, Inc. (“Re/Max”), in New York...more

Travelodge Hotels, Inc. v. Durga, LLC: A Case Study on How to Document Compliance Obligations under Franchise Agreements

In Travelodge Hotels, Inc. v. Durga, LLC, a hotel franchisor, Travelodge Hotels, Inc. (Travelodge), sued Durga LLC and its sole member (Durga), a hotel franchisee, in the U.S. District Court for the District of New Jersey,...more

Farm Equipment Supplier Case Demonstrates Vermont Court’s Willingness to Enforce Plain Meaning of Applicable Statutes

In Northeast Farm Sales and Service, Inc. v. Krone NA, Inc., a farm equipment dealer, Northeast Farm Sales and Service, Inc. (Northeast Farm), sued Krone NA, Inc. (Krone), a supplier of farm equipment, in the dealer’s home...more

Sixth Circuit Holds Michigan Franchise Investment Law Voids Forum Selection Clause

The Sixth Circuit has held that a contractual forum-selection clause in a franchise agreement was unenforceable because it violated state law. In Lakeside Surfaces, Inc. v. Cambria Company, LLC, Lakeside Surfaces, a...more

Federal Court Dismisses Case When Franchisee Association Fails to Satisfy Requirements to Establish Associational Standing

A recent federal court decision explores the concept of associational standing, the right of an association of franchisees to sue a franchisor on behalf of its member franchises. In APFA Inc. v. UTAP Management, LLC, the...more

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