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Foley & Lardner LLP

Federal Court Enjoins Former Franchisees and Two Related Entities from Competing Against Franchisor

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A federal court recently granted in part and denied in part a franchisor’s motion to enjoin the post-termination activities of its former franchisees and two related entities. Rooterman, LLC is a plumbing services franchisor....more

Mintz Edge

Client Alert: Delaware Franchise Taxes

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Everyone told you to incorporate in Delaware. Podcast hosts, industry blogs, your co-founder, your lawyer, your college roommate, your dogwalker – they all said that when it comes to incorporating your startup, Delaware is...more

DLA Piper

The SBA Franchise Directory is Back

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The US Small Business Administration (SBA) has reinstated its SBA Franchise Directory after a two-year hiatus. Widely hailed as a valuable resource by stakeholders, the SBA Franchise Directory is a list of franchisors...more

Offit Kurman

SBA Franchise Directory Reinstated: Key 2025 Updates for Franchisors and Franchisees

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The U.S. Small Business Administration reinstated the Small Business Administration (SBA) Franchise Directory on June 1, 2025, reversing the 2023 decision to sunset the program. The Directory has long been the primary...more

BakerHostetler

[Podcast] The Cloakroom with Peter Roskam: 36th Annual Legislative Seminar – Congressman Kevin Hern, R-OK

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Former Congressman Peter Roskam, who leads BakerHostetler’s Federal Policy team, provides listeners with a front-row seat to the most important policy and political debates in Congress. In this episode of “The Cloakroom with...more

Foley & Lardner LLP

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

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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

Bilzin Sumberg

District Court Denies Burger King’s Motion to Dismiss Putative Class Action Related to No-Poaching Provisions in Franchise...

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Arrington v. Burger King Worldwide, Inc., No. 1:18-cv-24128 (S.D. Fla. Oct. 5, 2018) – In October 2018, Jarvis Arrington, a former employee at a Burger King franchisee in Illinois, filed a class action complaint against...more

Foley & Lardner LLP

Franchise Agreement Requiring Out of State Mediation Is Unenforceable in California Background

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Dispute resolution provisions in franchise agreements often address how, when, and where parties will mediate. However, the enforceability of these provisions can change depending on the law of the state governing the...more

Lathrop GPM

Supreme Court of Texas Holds Franchisor Lacked Control Over Franchisee Sufficient to Create Duty of Care to Customer that Alleged...

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The Supreme Court of Texas recently ruled that franchisor Massage Heights did not owe a duty of care to a massage customer who alleged a sexual assault, because, among other reasons, Massage Heights had neither the...more

Lathrop GPM

California Federal Court Denies Franchise CEO’s Motion to Dismiss Franchise Disclosure Claims

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A federal court in California recently declined to dismiss a former franchisee’s suit against Nadia Gruzd, the CEO and COO of AllMed Search, a healthcare recruitment franchise system. Pasture Gate Holdings, Inc. v. Gruzd,...more

Lathrop GPM

New Jersey Federal Court Enters Default Judgment Against Franchisee, Awards Franchisor Liquidated Damages

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A federal court in New Jersey recently entered default judgment against franchisee Nisha Investments, LLC and its guarantor Rajesh Patel arising from their early termination of a franchise agreement with La Quinta...more

Lathrop GPM

Arizona Federal Court Dismisses Franchisee’s Defamation Counterclaims Against Franchisor

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A federal court in Arizona recently dismissed a franchisee’s counterclaims for breach of contract, defamation, and injunctive relief against its former franchisor. LeTip World Franchise LLC v. Long Island Soc. Media Grp. LLC,...more

Lathrop GPM

California Federal Court Enforces Hotel Franchisor’s Arbitration Provision and Compels Arbitration

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A federal court in California recently granted a franchisor’s motion to compel arbitration and stay the lawsuit in a dispute alleging breach of contract, breach of the implied covenant of good faith and fair dealing, and...more

Lewitt Hackman

Service Franchisors: New Rules in California for Automatic Renewals July 1st

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From streaming services and gym memberships to software vendor agreements and e-commerce franchises, automatic contract renewals are common occurrences. Currently, California law protects consumers regarding automatic renewal...more

Fox Rothschild LLP

Franchise Times Dealmakers Predict Cloudy Forecast for Franchise M&A in 2025

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Last month, Franchise Times held its annual “Dealmakers Week” where it offers a series of webinars with top franchise dealmakers to discuss the year’s biggest franchise deals and industry trends. The week included a...more

Proskauer - Tax Talks

California FTB Releases Updated Proposed Regulations on Market-Based Sourcing Rules

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On May 20, 2025, California’s Franchise Tax Board (“FTB”) released changes to the proposed regulations (“Draft Regulations”) that would amend the rules regarding market-based sourcing for sales other than sales of tangible...more

Lewitt Hackman

Franchisee 101: Handle Profit Projections With Care

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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

Foley & Lardner LLP

Keep Wining: Franchise Statute Opens Door to Protections for Missouri Wine Distributor

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The Eighth Circuit recently applied a novel, broad reading of the Missouri Franchise Act granting franchise protection to distributors which previously would not likely have been considered franchisees....more

Lewitt Hackman

Franchisor 101: Farsighted Vision for System Changes

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An Ohio federal court granted a franchisor’s motion to dismiss a putative class of franchisees alleging antitrust violations and related claims, including interference to deflate franchisees’ reimbursement rates. Other class...more

Wiley Rein LLP

Privacy, AI, and Consumer Protection Takeaways from FTC Chairman’s House Testimony

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FTC Chairman Andrew Ferguson testified before the House Appropriations Committee’s Financial Services and General Government Subcommittee on May 15 to discuss the agency’s consumer protection and competition efforts and...more

Williams Mullen

2025 Alcohol Law Changes Brewing in North Carolina

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The North Carolina General Assembly is considering various alcohol bills during the long 2025 session. Proposed changes include legalizing happy hour, authorizing Sunday sales by ABC stores, clarifying special one-time...more

Fox Rothschild LLP

Texas Supreme Court Reverses Liability Finding Against Franchisor

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A recent Texas Supreme Court decision fully overturned a jury’s finding that a franchisor was liable for the criminal actions of a franchisee’s employee. This decision underscores the importance of a franchisor having clearly...more

Akerman LLP

Leisure Law Insider (Vol. 6) - Spring 2025

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Welcome to the fifth edition of The Leisure Law Insider! Released quarterly, we cover the latest news and developments in leisure and hospitality law, regulation, and policy. Expect content on hotels, franchising, labor and...more

Mandelbaum Barrett PC

Spotlight on Hotel Comfort Letters

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A hotel comfort letter is a document issued by a hotel franchisor to a lender when a hotel owner (the borrower) seeks financing. It provides the lender with assurances about the relationship between the franchisor, borrower,...more

Fox Rothschild LLP

Franchise Enforcement Trends: Are States Cracking Down on Non-Compliance?

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If you think franchise compliance is just a box to check, think again. As part of my presentation on Annual Developments in Franchise Law at the most recent ABA Forum on Franchising Annual Meeting, I did a deep dive into...more

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