An appellate court in California has affirmed a trial court’s rejection of more than $4 million in lost business profits, which appellant Glen Suh alleged in a breach of contract action against franchisor Boba Time, Inc. Suh...more
3/15/2024
/ Appeals ,
Breach of Contract ,
Business Litigation ,
Business Losses ,
Contract Terms ,
Exclusive Territory ,
Franchise Agreements ,
Franchisee ,
Franchises ,
Franchisors ,
Royalties
A federal court in Minnesota has dismissed a claim under the Minnesota Franchise Act (MFA), holding that a franchisor’s consent to the assignment of a franchise does not constitute a sale or an offer to sell under the Act....more
Ninth Circuit Reverses Class Action Settlement Approval and Fee Award -
The Ninth Circuit Court of Appeals has reversed the approval of a $10 million voucher settlement and a $2.6 million attorneys’ fee award in a class...more
11/4/2021
/ Americans with Disabilities Act (ADA) ,
Appeals ,
Arbitration ,
Attorney's Fees ,
Class Action ,
Contract Terms ,
Damages ,
Forum Selection ,
Franchise Agreements ,
Franchisee ,
Franchises ,
Franchisors ,
Future Royalties ,
Injunctive Relief ,
Judgment on the Pleadings ,
Reversal ,
Royalties ,
Settlement ,
Unenforceable Contract Terms ,
Vouchers
Second Circuit Affirms Dismissal of Franchisees’ Minimum Wage and Unjust Enrichment Claims -
A divided panel of the Second Circuit Court of Appeals has concluded that claims of improper wage deductions and unjust...more
10/8/2021
/ Breach of Contract ,
Damages ,
Diversity and Inclusion Standards (D&I) ,
Employee Definition ,
Franchise Agreements ,
Franchisee ,
Franchises ,
Franchisors ,
Misappropriation ,
Non-Compete Agreements ,
Trade Secrets ,
Wage and Hour
Two Illinois Federal Courts Deny Class Certification in Anti-Poaching Class Actions Against Franchisors -
Two federal courts in Illinois have rejected motions to certify classes of employees who worked in franchised...more
9/3/2021
/ Affiliates ,
Arbitration ,
Arbitration Awards ,
Bona Fide Purchaser ,
Class Action ,
Contract Terms ,
Forum Selection ,
Franchise Agreements ,
Franchisee ,
Franchises ,
Franchisors ,
Fraud ,
Jimmy John's ,
McDonalds ,
Misrepresentation ,
Motion for Reconsideration ,
No-Poaching ,
Right of First Refusal ,
Standard Contractual Clauses
Welcome to The Franchise Memorandum by Lathrop GPM. Periodically, The Franchise Memorandum focuses on topics primarily of interest to companies that use distributors and dealers rather than manage a business format franchise...more
8/6/2021
/ Arbitration ,
Breach of Contract ,
Choice-of-Law ,
Contract Termination ,
Contract Terms ,
Franchise Agreements ,
Franchisee ,
Franchises ,
Franchisors ,
Fraud ,
Misrepresentation ,
Preliminary Injunctions
Welcome to The Franchise Memorandum by Lathrop GPM. Below are summaries of recent legal developments of interest to franchisors.
Missouri Federal Court Holds Franchisor Controls Sufficient to Survive Motion to Dismiss...more
7/9/2021
/ Breach of Contract ,
Contract Terms ,
Failure To State A Claim ,
Franchise Agreements ,
Franchisee ,
Franchises ,
Franchisors ,
Injunctions ,
Injunctive Relief ,
Joint Employers ,
Non-Compete Agreements ,
Personal Jurisdiction ,
Successor Interests
Welcome to The Franchise Memorandum by Lathrop GPM. Below are summaries of recent legal developments of interest to franchisors.
Post-Termination Injunction: Noncompete Covenants -
California Federal Court Enforces...more
6/4/2021
/ Antitrust Litigation ,
Class Action ,
Dismissals ,
Forum Non Conveniens ,
Forum Selection ,
Franchise Agreements ,
Franchisee ,
Franchises ,
Franchisors ,
Injunctions ,
Non-Compete Agreements ,
Post-Termination Acts ,
Preliminary Injunctions ,
Standing ,
Trade Secrets ,
Venue
Welcome to The Franchise Memorandum by Lathrop GPM. Below are summaries of recent legal developments of interest to franchisors.
Fraud/Misrepresentation -
Minnesota Federal Court Rules that Fraud and Misrepresentation...more
5/6/2021
/ Arbitration Agreements ,
Binding Arbitration ,
Brokers ,
Coronavirus/COVID-19 ,
Franchise Agreements ,
Franchisee ,
Franchises ,
Franchisors ,
Fraud ,
Hotels ,
Joint Employers ,
Misrepresentation ,
Preliminary Injunctions ,
Puffery ,
Putative Class Actions ,
Vicarious Liability ,
Wrongful Death
Illinois Federal Court Excludes Plaintiffs’ Expert Testimony on Certification Motion in Anti-Poaching Class Action -
A federal court in Illinois granted Jimmy John’s motion to exclude expert testimony of a putative class...more
3/11/2021
/ CAFA ,
Choice-of-Law ,
Contract Termination ,
Default ,
Expert Testimony ,
Fast-Food Industry ,
Franchise Agreements ,
Franchises ,
Franchisors ,
Jimmy John's ,
Jurisdiction ,
No-Poaching ,
Petition for Writ of Certiorari ,
Putative Class Actions ,
Remand ,
Restaurant Industry ,
Standing ,
Trademarks
California Supreme Court Applies Independent Contractor Standard Retroactively; Does Not Reach Applicability to Franchises -
The California Supreme Court has held that its Dynamex decision applies retroactively, answering...more
2/12/2021
/ Biden Administration ,
CA Supreme Court ,
Choice-of-Law ,
Contract Disputes ,
Contract Terms ,
Department of Labor (DOL) ,
Employer Liability Issues ,
Final Rules ,
Franchise Agreements ,
Franchisee ,
Franchises ,
Franchisors ,
Hotel Management Agreements ,
Independent Contractors ,
Regulatory Freeze ,
Retroactive Application ,
Unfair Competition ,
Wrongful Death
Welcome to The Franchise Memorandum by Lathrop GPM. Below are summaries of recent legal developments of interest to franchisors.
Fifth Circuit Reverses Trial Court’s Excusal of Area Representative’s Tardy Renewal Notice -...more
1/15/2021
/ Appeals ,
Contract Renewal ,
Contract Termination ,
Contract Terms ,
Covenant of Good Faith and Fair Dealing ,
Federal Trade Commission (FTC) ,
Franchise Agreements ,
Franchisee ,
Franchises ,
Franchisors ,
Fraud ,
Fraudulent Inducement ,
Joint Employers ,
Liquidated Damages ,
McDonalds ,
Reversal ,
Trademarks
Welcome to The Franchise Memorandum by Lathrop GPM, formerly known as The GPMemorandum. Periodically, The Franchise Memorandum focuses on topics primarily of interest to companies that use distributors and dealers rather than...more
12/10/2020
/ Breach of Contract ,
Contract Terms ,
Dismissals ,
Distributors ,
Franchise Agreements ,
Franchises ,
IP License ,
License Agreements ,
Manufacturers ,
Motion to Dismiss ,
Tortious Interference ,
Trademarks
Colorado Federal Court Applies Forum Selection Clause to Non-Signatory Entities Controlled by Former Franchisees -
A federal court in Colorado held that entities controlled by former franchisees were bound by the forum...more
11/6/2020
/ Americans with Disabilities Act (ADA) ,
Breach of Contract ,
Contract Terms ,
Forum Selection ,
Franchise Agreements ,
Franchisee ,
Franchises ,
Franchisors ,
Injunctions ,
Injunctive Relief ,
Non-Compete Agreements ,
Personal Jurisdiction
Welcome to The Franchise Memorandum by Lathrop GPM, formerly known as The GPMemorandum. Periodically, The Franchise Memorandum focuses on topics primarily of interest to companies that use distributors and dealers rather than...more
Welcome to The Franchise Memorandum by Lathrop GPM, formerly known as The GPMemorandum. Below are summaries of recent legal developments of interest to franchisors.
Given the widespread and evolving impact of the COVID-19...more
Welcome to The Franchise Memorandum by Lathrop GPM, formerly known as The GPMemorandum. Since December 1997, The GPMemorandum has been presenting summaries of recent legal developments of interest to franchisors and companies...more
1/29/2020
/ Anti-Kickback Statute ,
Antitrust Provisions ,
Choice-of-Law ,
Commercial Bankruptcy ,
Department of Labor (DOL) ,
Employer Liability Issues ,
Final Rules ,
Franchise Agreements ,
Franchisee ,
Franchises ,
Franchisors ,
Joint Employers ,
McDonalds ,
NLRB ,
No-Poaching ,
Statute of Limitations ,
Trademarks ,
Unjust Enrichment ,
Vicarious Liability