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Franchise Updates

Read need-to-know updates, commentary, and analysis on Franchise issues written by leading professionals.
Lathrop GPM

New Jersey Federal Court Denies Hotel Franchisee’s Motion to Dismiss TVPRA for Improper Venue and Untimeliness

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New Jersey federal court denied a Super 8 franchisee’s motion to dismiss, holding that venue in the District of New Jersey was proper and that the plaintiff’s Trafficking Victims Protection Reauthorization Act (TVPRA) claims...more

Lathrop GPM

Florida District Court Grants Summary Judgment in Favor of Franchisee and Franchisor Entities on TVPRA Claims.

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A Florida federal district court recently granted summary judgment, holding that claims under the Trafficking Victims Protection Reauthorization Act (TVPRA) were time-barred. Doe K.R. v. Choice Hotels, 2025 WL 3469855 (M.D....more

Lathrop GPM

Federal Court Dismisses Franchisor from Wage Suit for Conclusory Joint-Employer Allegations

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A federal court in Ohio dismissed wage-and-hour claims brought by a former employee of a Glass Doctor franchisee against Synergistic International LLC because the complaint inadequately pleaded Synergistic’s liability for the...more

Lathrop GPM

New York Federal Court Denies Franchisee’s Attempts to Reinstate Good Faith and Fair Dealing Claim

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A federal district court in New York recently denied a franchisee’s motion to amend its complaint and its motion to file an interlocutory appeal of the court’s dismissal of its breach of contract claim. Michell v. McDonald’s...more

Lathrop GPM

Third Circuit Affirms Liquidated Damages in Favor of Hospitality Franchisor

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The Third Circuit Court of Appeals affirmed summary judgment for a franchisor on a franchisee’s breach of contract claims, finding that the franchise agreement unambiguously granted the franchisor the right to suspend the...more

Lathrop GPM

Puerto Rico Federal Court Grants TRO to Prevent Termination of Sale of Gas Station Franchise

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A federal district court in Puerto Rico recently granted a franchisee’s request for a temporary restraining order under the Petroleum Marketing Practices Act (PMPA), preventing its franchisor from terminating or selling the...more

Lathrop GPM

Washington Federal Court Allows TVPRA Claims to Proceed Against Hotel Franchisor Under Vicarious Liability Theory, but Dismisses...

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A federal court in Washington granted in part and denied in part a hotel franchisor’s motion to dismiss, holding that the franchisor may be found indirectly liable under the Trafficking Victims Protection Reauthorization Act...more

BakerHostetler

Caution - Don’t Mix Politics and Hotel Reservations! Takeaways from the Minnesota Hilton Situation

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In January 2026, a Hampton Inn by Hilton in Lakeville, Minnesota, allegedly and repeatedly refused service to U.S. Immigration and Customs Enforcement (ICE) agents, canceling their reservations and allegedly asking them by...more

Lewitt Hackman

Hilton Franchisee Gets Iced: The Impact of Controversy on the Franchise Relationship

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A productive franchise relationship encompasses various elements that both the franchisor and franchisee must consider and balance. This intricate connection of contractual obligations, financial commitments, and...more

Troutman Pepper Locke

Franchisors Remain Under Attack for IC Misclassification: December 2025 IC Legal News Update

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We report below on three new lawsuits filed last month for independent contractor (IC) misclassification. In the first, an automotive repair tool company operating on a franchise business model was sued by mobile tool dealers...more

Foley & Lardner LLP

Federal Court Denies Claim that Franchisor Is a Joint Employer with Franchisee

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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

Lewitt Hackman

Franchisee 101: Judicial Insulation for Arbitration

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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

Lewitt Hackman

Franchisor 101: No Room for Contempt

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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

DLA Piper

Franchise Regulations In Canada Expand Into Saskatchewan

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Saskatchewan will begin to enforce its Franchise Disclosure Act (the Act) and accompanying regulations (Regulations) on June 30, 2026. The Act and Regulations mark Saskatchewan’s foray into franchise regulation, joining six...more

Lewitt Hackman

Multi-Unit Franchising: Navigating the Risk and Reward

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While the saying “the more the merrier” is not usually associated with franchising, the rise of purchases of multi-unit franchises in the United States makes it more relevant than ever....more

Miles Mediation & Arbitration

The Power of Prescence: From Where I Sit, It’s Time for In-Person Mediation to Resume

A lawyer for whom I have mediated has a favorite expression: “What you see depends on where you sit.” In the past six to seven years, I’ve sat in and mediated 250+ mediations, virtually all involving disputes over franchise...more

Fox Rothschild LLP

Buying and Investing in the Brand

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Companies with strong brands, like franchise companies, are often seen as excellent investment vehicles. Because these brands have recurring revenue and can be “asset-light,” the revenue stream is considered an annuity....more

Offit Kurman

The American Franchise Act Could Secure the Future of Franchising in the U.S.

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A bill pending before the U.S. House of Representatives, if signed into law, would finally establish clarity on how and when employer responsibility is shared by franchisors and franchisees under the National Labor Relations...more

Foley & Lardner LLP

Franchisee Must Comply with Reasonable Post-Termination Obligations in Franchise Agreements

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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

Nelson Mullins Riley & Scarborough LLP

“Reasonableness” in State Warranty Reimbursement Statutes Takes a Hit in 2025

Legislatures in several states overhauled their warranty reimbursement statutes in 2025, which generally require OEMs to pay “reasonable” reimbursement to dealers for labor performed by service technicians for repairs to...more

Foley & Lardner LLP

Franchisee’s Breach of Contract Claims Dismissed for Lack of Standing as Third-Party Beneficiary

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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

Lewitt Hackman

Franchisee 101: Double Parked

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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

Sheppard Mullin Richter & Hampton LLP

Congress Introduces the “American Franchise Act” to Clarify Joint Employer Liability

On September 10, 2025, Representative Kevin Hern (OK-01), together with Democrat co-lead Representative Don Davis (NC-01), introduced the American Franchise Act (H.R. 5267, hereinafter “AFA”). The AFA is designed to provide...more

Lewitt Hackman

Franchisor 101: Total Vacancy

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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

Akerman LLP

Restaurant Brand Licensing: A Scalable Path To Growth

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Restaurant brands—especially franchises—already possess a critical ingredient for licensing success: consumer recognition for quality food. Yet many have not extended their brands into retail or non-traditional formats, even...more

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