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Lathrop GPM

New Jersey Appellate Court Holds Automotive Retailers Association Has Associational Standing to Assert Claims Under New Jersey...

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A New Jersey appellate court, reversing a summary judgment decision, recently held that the New Jersey Coalition of Automotive Retailers, Inc. (the Coalition) had associational standing to bring an action against Ford Motor...more

Lathrop GPM

California Court of Appeals Affirms Rejection of Reverse Royalty Damages in a Breach of Contract Action by Franchisee

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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

Foley & Lardner LLP

Seventh Circuit Revives Franchise No-Poach Case, Holds Per Se Treatment Possible

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A recent opinion by the U.S. Court of Appeals for the Seventh Circuit reinstates allegations against McDonald’s that no-poach provisions in the company’s franchise agreements violate the antitrust laws, holding that such...more

Foley & Lardner LLP

Third Circuit Rules Texas Auto Dealer Incentive Programs Must Use Reliable Standards

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The Texas Third Court of Appeals has offered guidance on the use of dealer incentive programs (DIPs) under the Texas Occupations Code (TOC). In Star Houston, Inc. v. Volvo Cars of North America, LLC and the Board of the Texas...more

Foley & Lardner LLP

Court Looks at What a Franchise Is Under the Minnesota Franchise Act

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In Louis Degidio, Inc. v. Industrial Combustion, LLC, Louis Degidio, Inc. (Degidio) and Louis Degidio Services, Inc. (Degidio Services) sued Industrial Combustion, LLC (IC), a manufacturer of “institutional boiler system”...more

Kilpatrick

Georgia Court of Appeals joins growing wave of courts rejecting local government franchise fee claims against streaming companies

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The Georgia Court of Appeals recently joined a host of trial and appellate courts across the country that have rejected local governments’ demands for video service franchise fees from streaming service companies. See...more

Lathrop GPM

New York Appellate Court Dismisses Royalties Claim Because of Franchisor’s Breach Under Preliminary Injunction

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A state appellate court in New York recently held a franchisor was not entitled to unpaid royalty fees because of its own breach of a franchise agreement reinstated by preliminary injunction. Integrity Real Estate Consultants...more

Lathrop GPM

California Court of Appeals Denies Franchisor’s Motion to Compel Customer to Arbitrate Based on “Terms of Use”

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A California appellate court recently affirmed a trial court’s ruling that a customer had not agreed to arbitrate claims against a franchisor when she was presented with a “Terms of Use Agreement” at a franchised location....more

Lathrop GPM

Ninth Circuit Affirms Decision that Franchisees Are Not Employees of Franchisor

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The Ninth Circuit Court of Appeals recently affirmed a decision that a group of franchisees are not employees of their franchisor, even though the trial court failed to apply the correct test. Haitayan v. 7-Eleven, Inc., 2022...more

Foley & Lardner LLP

Federal Appeals Court Rules on Franchisor’s Power to Impose Changes on Franchise System

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The Eleventh Circuit Court of Appeals recently issued an opinion concerning a dispute over a franchisor’s effort to mandate changes to a franchisee’s operations. The Court granted the franchisor a mixed result. The decision...more

Lathrop GPM

The Franchise Memorandum - Issue #271

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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

Lewitt Hackman

Franchisee 101: Jani-King Franchisees Wear Many Crowns

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Past and present franchisees of commercial cleaning service franchisor, Jani-King, brought claims for violation of Connecticut minimum wage and anti-kickback laws, and unjust enrichment. They claimed Jani-King misclassified...more

Lewitt Hackman

Franchisee 101: No Excuse for Late Notice

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The U.S. Court of Appeals for the Fifth Circuit reversed a trial court judgment against a Texas franchisor, finding the lower court erred in excusing an untimely renewal notice of area development agreements. The Court held a...more

Lathrop GPM

The Franchise Memorandum - Issue # 261

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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

Best Best & Krieger LLP

“You Can’t Stand in the Way of Progress”

California Appellate Court Says Public Utility Must Pay to Relocate Pipelines to Make Way for Public Transportation Project - In a landmark victory for transportation agencies, the California Court of Appeal brought...more

White & Case LLP

Dallah Revisited: The French and English Courts in Conflict Again Regarding Arbitral Jurisdiction Over Non-Signatories

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The ongoing Kout Food saga provides a salutary reminder that difficult issues can sometimes arise when parties choose different systems for the substantive law of their contractual relationship and the curial law of the seat...more

Lewitt Hackman

FRANCHISEE 101: Bar-B-Q Blues — A Tale of Friendship, Partnership, and Deceit

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A federal appeals court reversed dismissal of a claim against a barbeque restaurant franchisor. The court found that, despite having signed releases in favor of the franchisor, a former franchisee had valid claims for...more

BCLP

Indonesia in Focus - February 2020

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Constitutional Court Accepts Judicial Review of Fiducia Security Law - Following the judicial review of Article 15(2) and Article 15(3) of Law No. 42 of 1999 on Fiducia Security (the “Fiducia Law”), the Constitutional...more

Cozen O'Connor

Ninth Circuit Court of Appeals Holds Franchisor Not Liable as a Joint Employer Of its Franchisee

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On October 1, 2019, the 9th Circuit Court of Appeals decided by majority opinion by Circuit Judge Susan Graber, with a partial dissent filed by Chief Circuit Judge Sidney Thomas, Salazar v. McDonald's Corp. No. 17- 15673 (9th...more

Manatt, Phelps & Phillips, LLP

Lovin’ It: Ninth Circuit Rules McDonald’s Is Not a Joint Employer

The U.S. Court of Appeals for the Ninth Circuit ruled that McDonald’s is not a joint employer with a franchisee under the definitions found in California Wage Order 5-2001, as it did not have direct control over the store...more

ArentFox Schiff

Lovin' It: Ninth Circuit Rules McDonald's is Not a Joint Employer with Franchisee in California

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In a case that should grab the attention of franchisors across the country, a panel of the US Court of Appeals for the Ninth Circuit has ruled that McDonald’s Corporation is not the joint employer of the employees of a...more

ArentFox Schiff

Lovin' It: Ninth Circuit Rules McDonald's is Not a Joint Employer with Franchisee in California

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In a case that should grab the attention of franchisors across the country, a panel of the US Court of Appeals for the Ninth Circuit has ruled that McDonald’s Corporation is not the joint employer of the employees of a...more

Littler

Dynamex Retroactivity Question Sent to California State Court

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On September 24, 2019, the U.S. Court of Appeals for the Ninth Circuit certified to the Supreme Court of California the question of whether that court’s landmark 2018 decision in Dynamex v. Superior Court should be applied...more

BCLP

New California Law Disrupts Franchise Relationships

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Winter is coming for franchisors in California.  Last year, the California Supreme Court decided to hold California businesses liable for the violation of Massachusetts labor statutes when it adopted the ABC test for...more

Littler

Highest Court in Canada Says Substance, not Form, will Determine Independent Contractor or Employee Status

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A recent Supreme Court of Canada (SCC) decision considered whether a franchisee who entered into a franchise agreement with a franchisor was an employee or an independent contractor. The fact-specific case, Modern Cleaning...more

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