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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

Foley & Lardner LLP on

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

Foley & Lardner LLP on

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

Lathrop GPM

Texas Court of Appeals Affirms Take-Nothing Judgment in Favor of Jack in the Box

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A state appellate court in Texas affirmed a take-nothing judgment in favor of Jack in the Box, rejecting a bankruptcy trustee’s claims for breach of contract, breach of the implied covenant of good faith and fair dealing, and...more

Akerman LLP

Leisure Law Insider (Vol. 8) - Winter 2025

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Welcome to the latest 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

Foster Swift Collins & Smith

When the Dough Rises Too Close to Home - A Hypothetical Trademark Story

The following is a hypothetical story meant for general educational purposes and is not based on any real-life business or dispute. Readers should consult an attorney prior to taking action to determine how this information...more

Lathrop GPM

Maryland Federal Court Grants Franchisor’s Motion to Dismiss Joint Employer Claims

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A federal court in Maryland recently dismissed a former franchisee employee’s joint-employer-based claims against the franchisor and discrimination and retaliation claims against her franchisee employers. Sharp v. Arthur...more

Lathrop GPM

Michigan Court of Appeals Enforces Arbitration Provision Among Conflicting Dispute Resolution Provisions

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A state appellate court in Michigan affirmed in part and reversed in part a trial court’s decision compelling arbitration and denying a motion to rescind two contracts related to a failed effort to establish a franchise...more

Lowndes

When Brand Control Goes Too Far (or Not Far Enough)

Lowndes on

Your glamorous branded residence deal could accidentally strip a luxury brand naked — legally speaking. In trademark law, naked licensing happens when a brand lets someone use its name but fails to control how it’s used. No...more

Lewitt Hackman

Franchisee 101: Going on Vacatur

Lewitt Hackman on

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

Lewitt Hackman

Franchisor 101: Waltzing Around Joint Employer Issues

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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

Nelson Mullins Riley & Scarborough LLP

Different Roads to “Reasonable”: How States Are Redefining Warranty-Labor Time

State legislatures across the country are reexamining how motor vehicle original equipment manufacturers (OEMs) reimburse dealers for warranty work. While approaches vary, the direction is clear: lawmakers are experimenting...more

Fox Rothschild LLP

Franchise Regulatory Update: What Franchisors Need to Know Now

Fox Rothschild LLP on

The 2026 franchise renewal season is already shaping up to be anything but routine. Evolving state examiner focus, regulatory changes and NASAA updates are altering the playbook for franchisors — impacting how franchise...more

Lathrop GPM

Maryland Introduces New Franchise Renewal Fast-Track Review Program

Lathrop GPM on

On October 8, Maryland Securities Commissioner Melanie Senter Lubin announced a Fast-Track Program, launching January 1, to expedite franchise renewal registrations. The program will benefit franchisors, franchisees, and the...more

Lathrop GPM

Pennsylvania Federal Court Confirms Arbitration Award for Choice Hotels Over Franchisee Objections

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A federal court in Pennsylvania recently confirmed a final arbitration award in favor of Choice Hotels, denying the franchisee’s motion to vacate the award. Choice Hotels Int’l, Inc. v. Jai Sai Baba LLC, 2025 WL 2636596 (E.D....more

Lathrop GPM

North Carolina Federal Court Declines to Dismiss Franchise Disclosure Document Malpractice Suit on Statute of Limitations Grounds

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A federal district court recently denied a law firm’s motion to dismiss a legal malpractice suit against it on statute of limitations grounds. Smash Franchise Partners, LLC v. Barber Power Law Grp., PLLC, 2025 WL 2598369...more

Lathrop GPM

New Jersey Federal Court Grants Franchisor’s Motion for Summary Judgment in a Breach of Contract Action Against Franchisee

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In La Quinta Franchising LLC v. Shin Hosp., Inc., 2025 WL 2751542 (D.N.J. Sept. 29, 2025), the franchisor brought claims for breach of a Franchise Agreement and liquidated damages against Shin Hospitality, Inc., Percy...more

Lathrop GPM

Virginia Federal Court Enters Unopposed Default Judgment Against 7-Eleven Franchisee

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A federal court in Virginia recently entered default judgment in favor of 7-Eleven, Inc. against a former franchisee, Sisara LLC. 7-Eleven, Inc. v. Sisara, LLC, 2025 WL 2453804 (W.D. Va. Aug. 26, 2025)....more

Saul Ewing LLP

Understanding the American Franchise Act

Saul Ewing LLP on

A new federal bill, The American Franchise Act, introduced on September 10, 2025 as H.R. 5267, represents a significant legislative effort to address the evolving landscape of the "joint employer" test, particularly as it...more

Shumaker, Loop & Kendrick, LLP

Texas Senate Bill 140: New Telemarketing Liabilities for Franchisors and Businesses Marketing to Texans

Effective September 1, 2025, franchisors and businesses supporting franchisees or subsidiaries in Texas face heightened legal risks under Texas Senate Bill 140 (SB 140). The law expands telemarketing regulations to cover...more

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