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
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
9/11/2024
/ Advertising ,
Breach of Contract ,
Declaratory Judgments ,
Enforcement ,
Fees ,
Franchise Agreements ,
Franchisee ,
Franchises ,
Investment ,
Popular ,
Promissory Estoppel ,
Royalties
The Federal Trade Commission’s efforts to ban noncompete agreements suffered a serious blow when a federal judge in Texas issued a nationwide injunction blocking the ban’s enforcement. Implementation of the ban could disrupt...more
9/3/2024
/ Federal Bans ,
Federal Trade Commission (FTC) ,
Final Rules ,
FTC Act ,
Non-Compete Agreements ,
Preliminary Injunctions ,
Regulatory Authority ,
Restrictive Covenants ,
Statutory Authority ,
Texas ,
Unfair or Deceptive Trade Practices
A Wisconsin-based supplier of hair products had an agreement with a foreign manufacturer for the exclusive rights to sell products in Wisconsin and Minnesota. The supplier filed suit for violations of the Wisconsin Fair...more
On July 12, 2024, the Federal Trade Commission (FTC) issued a policy statement regarding franchisors’ use of contract provisions such as non-disparagement, goodwill, and confidentiality clauses. This is another example of the...more
In Ice Rak, LLC v. Rita’s Franchise Co., LLC, the Court enforced an arbitration agreement against a non-signatory of the same agreement because courts will consider the significance of the franchisees’ actions and...more
Franchise agreements’ arbitration clauses are enforceable even when subsequent agreements between the same parties contain forum selection clauses requiring litigation in different forums. Additionally, a trial court’s...more
The U.S. District Court for the District of New Jersey refused a franchisee’s attempt to broaden the protections of the New Jersey Franchise Protection Act. William Minnebo and Philly Metal Supply LLC entered into a franchise...more
Share on Twitter Print Share by Email Share Back to top In Meta Med, LLC, et al., v. Insulet Corporation, et al., Lyvette Mercado Velez, a dietitian, entered into a distribution agreement with Insulet Corporation, a medical...more
6/25/2024
/ Cause of Action Accrual ,
Distributors ,
Fraud ,
Liability ,
Manufacturers ,
Motion to Dismiss ,
Public Policy ,
Puerto Rico ,
Selective Distribution Agreements ,
Termination ,
Wholesale
Lyvette Mercado Velez, a dietitian, entered into a distribution agreement with Insulet Corporation, a leading medical device manufacturer, to promote and sell diabetes treatment products and services in Puerto Rico. Shortly...more
In Alamo Intermediate II Holdings, LLC. v. Birmingham Alamo Movies, the U.S. District Court for the Western District of Texas, denied franchise owner Hunter Renfroe’s motion to dismiss for lack of personal jurisdiction. The...more
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
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
In the contemporary landscape of manufacturing, a silent revolution is taking place, driven by the integration of artificial intelligence (AI) into various processes. As factories become smarter and more interconnected, AI is...more
4/10/2024
/ Artificial Intelligence ,
Compliance ,
Data Privacy ,
Data Security ,
Ethics ,
Infrastructure ,
Investment ,
Liability ,
Manufacturers ,
Manufacturing Defects ,
Supply Chain
On October 26, 2023, the National Labor Relations Board (NLRB or the “Board”) issued its long-awaited final rule (the “New Rule”) addressing the standard for determining joint-employer status under the National Labor...more
On October 26, 2023, the National Labor Relations Board (NLRB or “the Board”) issued its long-awaited final rule (“New Rule”) addressing the standard for determining joint-employer status under the National Labor Relations...more
11/2/2023
/ Browning-Ferris Industries of California Inc. ,
Employer Liability Issues ,
Federal Labor Laws ,
Final Rules ,
Franchises ,
Joint Employers ,
Labor Reform ,
Labor Regulations ,
Labor Relations ,
NLRA ,
NLRB ,
Regulatory Reform ,
Regulatory Requirements ,
Unions
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
The Ninth Circuit has recently vacated a preliminary injunction prohibiting the termination of a beer distribution agreement. In City Beverages, LLC v. Crown Imports, LLC, City Beverages sued Crown Imports when Crown Imports...more
The latest phase of digitization in manufacturing or “smart manufacturing” has transformed the automotive industry. Through the growing use of artificial intelligence (AI), machine learning, and automation, auto manufacturers...more
The Texas Third Court of Appeals has offered guidance on the use of dealer incentive programs (DIPs) under the Texas Occupations Code (TOC). In Star Houston, Inc. v. Volvo Cars of North America, LLC and the Board of the Texas...more
In Acuff v. Dy N Fly, LLC, four female plaintiffs sued a franchisor of hair salons (Dy N Fly), two of its franchisees, and the owner of the two franchisees for wrongful retaliatory termination and sexual harassment in the...more
7/18/2023
/ Compensation ,
Employee Benefits ,
Franchises ,
Franchisors ,
Hostile Environment ,
Joint Employers ,
Motion to Dismiss ,
Retaliation ,
Severance Agreements ,
Sexual Harassment ,
Wrongful Termination
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
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
On March 10, 2023, the Federal Trade Commission (FTC) notified the public it is seeking comments from franchisors, franchisees, and other related parties about franchise agreements, franchisor business practices, and how...more
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