A federal district court in California granted in part a franchisee’s motion to enforce a temporary restraining order (“TRO”) issued by a state court, finding the franchisor engaged in coercive “self-help” measures by...more
A group of franchisees filed a petition to compel arbitration against two franchisor entities and their parent company. The district court found that the franchisees failed to show the parent company was bound by the...more
A federal district court in New York recently dismissed a case for lack of diversity subject matter jurisdiction where the franchisee plaintiff and franchisor defendant were both foreign entities, even though they both...more
5/1/2026
/ Diversity Jurisdiction ,
Failure to Cure ,
Foreign Corporations ,
Foreign Entities ,
Forum Selection ,
Franchise Agreements ,
Franchise Termination ,
Franchisee ,
Franchisors ,
Motion to Dissolve ,
Notice of Default ,
Principal Place of Business ,
Subject Matter Jurisdiction ,
TRO
The federal district court in North Dakota granted a franchisee’s motion to dismiss a franchisor’s complaint for failure to state a claim and its motion for sanctions, finding the franchisor improperly attempted to relitigate...more
4/30/2026
/ Arbitration ,
Arbitration Agreements ,
Arbitration Awards ,
Breach of Contract ,
Claim Preclusion ,
Failure to Comply ,
Failure To Pay ,
Failure To State A Claim ,
Final Judgment ,
Franchise Agreements ,
Franchise Termination ,
Franchisee ,
Franchisors ,
Frivolous Lawsuits ,
Implied Contract ,
Motion for Sanctions ,
Motion to Dismiss ,
Res Judicata ,
Royalties
A California federal court denied a franchisee’s motion for summary judgment on its California Franchise Investment Law (“CFIL”) claims and denied the franchisee’s request to add new affirmative defenses....more
A Utah federal court denied a motion by Larada Sciences, Inc. (“LCA”), a franchisor of lice clinics, for a preliminary injunction preventing a former LCA franchisee, The MIH Group, LLC (“MIH”), from operating competing lice...more
3/30/2026
/ Breach of Contract ,
Franchise Agreements ,
Franchise Termination ,
Franchisee ,
Franchisors ,
Irreparable Harm ,
Loss of Goodwill ,
Non-Compete Agreements ,
Preliminary Injunctions ,
Proprietary Information ,
Public Interest ,
Trade Secrets ,
Unfair Competition
The Connecticut court of appeals held that petroleum retailers were not franchisees, and therefore not entitled to the protections afforded under the Connecticut Petroleum Franchise Act (CPFA)....more
A Louisiana district court held that a franchisee waived its right to remove a dispute with its franchisor from state court to federal court, based on the forum selection clause in the parties’ franchise agreement....more
A Washington district court analyzed whether franchisor Wyndham Hotels & Resorts could be held vicariously liable under the Trafficking Victims Protection Reauthorization Act (“TVPRA”). The plaintiff alleged she was...more
A federal court in Illinois granted a franchisor’s motion for preliminary injunction against a former franchisee in California, accused of breaching post-termination obligations in a franchise agreement. Applying Illinois...more
1/30/2026
/ Breach of Contract ,
California ,
Choice-of-Law ,
Franchise Agreements ,
Franchise Termination ,
Franchisee ,
Franchisors ,
Illinois ,
Likelihood of Success ,
Motion To Enjoin ,
Non-Compete Agreements ,
Non-Solicitation Agreements ,
Preliminary Injunctions ,
Proprietary Information ,
Restrictive Covenants
The federal district court in Michigan granted a motion to stay the franchisee’s case pending resolution of an arbitration between the franchisee and Spray Foam Genie International (“SFGI”), a spray foam insulation business...more
A federal district court in New Jersey granted summary judgment in favor of Choice Hotels International (“Choice”) in a trademark infringement action against a former franchisee who operated a hotel under Choice’s Econo Lodge...more
The federal district court in Maryland granted in part and denied in part franchisor Spiffy Franchising, LLC’s motion to compel arbitration in a lawsuit brought by a franchisee. The court compelled arbitration for the...more
11/26/2025
/ Addendums ,
Arbitration ,
Arbitration Agreements ,
Breach of Contract ,
Contract Negotiations ,
Contract of Adhesion ,
Franchise Agreements ,
Franchisee ,
Fraudulent Inducement ,
Motion to Compel ,
Notice of Intent ,
Unconscionable Contracts ,
Venue
The federal district court in New Jersey denied franchisor Days Inn Worldwide, LLC’s motion for summary judgment for breach of contract, where the terms of the franchise agreement did not make clear that a franchisee would be...more
A district court in Pennsylvania confirmed a final arbitration award in favor of a franchisor, denying the franchisees’ motion to vacate the award.
An association of franchisees sued franchisor Choice Hotels International,...more
11/3/2025
/ Arbitration ,
Arbitration Agreements ,
Arbitration Awards ,
Arbitrators ,
Cross Motions ,
Federal Arbitration Act ,
Franchisee ,
Franchisors ,
Motion to Vacate ,
Pennsylvania ,
Vacatur
A district court in Maryland granted a franchisor’s motion to dismiss against an employee in a discrimination and wrongful termination case. The court concluded the employee failed to show that she was an employee of the...more
10/31/2025
/ Disability Discrimination ,
Disparate Treatment ,
Employer Liability Issues ,
Employment Discrimination ,
Employment Litigation ,
Franchisee ,
Franchisors ,
Hiring & Firing ,
Hostile Environment ,
Joint Employers ,
Maryland ,
Motion to Dismiss ,
Race Discrimination ,
Wrongful Termination
A federal court in Michigan largely denied a franchisor’s motion for preliminary injunction against its former franchisees, accused of breach of contract, trademark infringement, trade secret misappropriation, and civil...more
10/1/2025
/ Breach of Contract ,
Civil Conspiracy ,
Clear and Convincing Evidence ,
Confidential Business Information (CBI) ,
Franchise Agreements ,
Franchisee ,
Franchisors ,
Injunctive Relief ,
Likelihood of Success ,
Misappropriation ,
Motion To Enjoin ,
Preliminary Injunctions ,
Proprietary Information ,
Trade Secrets ,
Trademark Infringement ,
Unclean Hands
A California federal court denied a franchisee’s motion to dismiss a franchisor’s counterclaims related to the loss of future royalties after terminating two separate franchise agreements in Ohio....more
An Arizona federal court dismissed a franchisee’s counterclaims for breach of contract, defamation, and injunctive relief against LeTip World Franchise, a professional networking franchisor....more
A California federal court stayed proceedings in favor of the franchisor and ordered the parties to undertake the dispute resolution procedures in the franchise agreement, holding that the parties clearly and unmistakably...more
A Texas federal court granted American Dairy Queen Corporation’s motion for partial summary judgment against a terminated franchisee, finding no dispute to the material facts establishing the franchisee’s material breach of...more
A California federal court denied a motion to dismiss a former franchisee’s complaint against a healthcare recruitment franchisor’s Chief Executive Officer....more
A federal court in Missouri granted franchisor’s motion for preliminary injunction against its former franchisee, enjoining the former franchisee from operating a competing business from the former franchised location....more
6/30/2025
/ Breach of Contract ,
Business Operations ,
Confidential Information ,
Franchise Agreements ,
Franchise Termination ,
Franchisee ,
Franchisors ,
Irreparable Harm ,
Misappropriation ,
Non-Compete Agreements ,
Preliminary Injunctions ,
Proprietary Information ,
Trade Secrets ,
Trademarks
The Texas Supreme Court reversed a lower court’s decision against a franchisor based on a theory of negligence after a customer was assaulted by an employee of the franchisee. The court concluded that franchisor did not owe a...more
6/27/2025
/ Assault ,
Duty of Care ,
Employee Misconduct ,
Employer Liability Issues ,
Franchise Agreements ,
Franchisee ,
Franchisors ,
Hiring & Firing ,
Independent Contractors ,
Negligence ,
Reversal ,
Right to Control ,
TX Supreme Court
A New York federal court denied a franchisor’s motion to dismiss a franchisee’s complaint for misrepresentations and improper financial performance representations which allegedly induced the franchisee to enter into multiple...more