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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

Lathrop GPM

Citing California Franchise Relations Act, California Federal Court Rejects Franchisor’s Attempt to Dismiss Case

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A federal court in California recently denied a franchisor’s motion to dismiss litigation, holding that a franchise agreement provision requiring the parties to mediate in Texas prior to instituting litigation or arbitration...more

Foley & Lardner LLP

Clear Terms of Franchise Agreement Are Enforced Against Franchisee

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A recent federal court decision in T&T Management, Inc. v. Choice Hotels, Inc. underscores key contractual and operational considerations for franchisors. T&T filed suit in U.S. District Court for the District of Minnesota...more

Lathrop GPM

California Federal Court Grants Remediation Franchisor’s Motion to Stay Proceedings

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A federal court in California recently granted Ringside Development Company’s motion to stay a franchisee-initiated lawsuit pending resolution through alternative dispute resolution. Jameson v. Ringside Development Company,...more

Lathrop GPM

Arizona Federal Court Grants Franchisee Temporary Restraining Order to Prevent Termination

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A federal court in Arizona recently granted a franchisee’s motion for temporary restraining order preventing termination of its franchise agreement and the franchisor’s withdrawal of any funds from the franchisee’s accounts....more

Fox Rothschild LLP

IFA Takeaways: How Smart Franchisors Stay Out of Court

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The International Franchise Association’s Annual Convention is always filled with useful take home information for franchise practitioners. Last week, I attended the session “Proactive Strategies for Franchisors to Prevent...more

Lathrop GPM

New Jersey Appellate Court Confirms Terminated Retailer Is Not in a Franchise Relationship with Manufacturer

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A New Jersey appellate court affirmed a state trial court’s ruling that a terminated retailer of custom outdoor kitchens was not in a franchise relationship with a manufacturer of outdoor grills and that the New Jersey...more

Lathrop GPM

Minnesota Federal Court Grants Franchisor’s Motion for Preliminary Injunction for Noncompete and Lanham Act Violations by...

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A federal court in Minnesota recently granted franchisor Snap Fitness Inc.’s motion for preliminary injunction against an out-of-state franchisee that announced its intentions to open a competing gym during the term of the...more

Lathrop GPM

Tennessee Appellate Court Finds that Venue Clause in Franchise Agreement is Permissive and Not Mandatory

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The Tennessee Court of Appeals reversed a district court’s dismissal of a franchisee’s declaratory judgment claim, finding that the claim was properly brought in Tennessee.  Lakeway Real Estate2, LLC v. ERA Franchise Sys.,...more

Lathrop GPM

Michigan Federal Court Grants Motion to Dismiss Claims Against One Owner of Franchisor, Denies Motion to Dismiss Claims Against...

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A federal court in Michigan recently granted a motion to dismiss for lack of personal jurisdiction against one owner of a franchisor, while denying the motion to dismiss against the other owner and granting the franchisor’s...more

Lathrop GPM

Franchisee’s Execution of Competing Franchise Agreement During Franchise Term Forecloses Claims Against Former Franchisor

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A federal court in New Jersey granted the franchisor of the Holiday Inn and Holiday Inn Express brands (Holiday Hospitality) summary judgment on former franchisee Scion Hotels’ complaint alleging violations of the New Jersey...more

Lathrop GPM

Massachusetts Supreme Judicial Court Rules that Franchisees Did Not Perform Services for Franchisor Within the Meaning of the...

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The Massachusetts Supreme Judicial Court answered “no” to a certified question from the First Circuit Court of Appeals asking whether plaintiff franchisees “‘perform any service’ for 7-Eleven within the meaning of [the...more

Falcon Rappaport & Berkman LLP

Michigan Bankruptcy Court Holds That a Non-Compete Clause Survives the Rejection of an Executory Contract and That a...

In a recent decision of interest, the Bankruptcy Court for the Eastern District of Michigan held that a non-compete clause within a franchise agreement as well as confidentiality agreement could not be rejected as an...more

Lathrop GPM

Michigan Federal Court Grants Franchisor’s Motion for Preliminary Injunction Against Former Restoration Service Franchisee

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A federal court in Michigan has granted a franchisor’s motion for preliminary injunction against former franchisees for violating the franchise agreements’ post-termination noncompete provisions. 1-800 Water Damage Int’l LLC...more

Lathrop GPM

Michigan Precedent on Michigan Franchise Investment Law Held to Trump Inconsistent Sixth Circuit Precedent on Private Right of...

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A federal court in Michigan recently granted several related franchisors’ motions to dismiss a franchisee’s claims for violations of the Michigan Franchise Investment law. Benjamin Franklin Franchising SPE LLC v. David...more

Lathrop GPM

Washington Federal Court Grants Home Healthcare Services Franchisor’s Motion to Compel Arbitration in Accordance with the...

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A federal court in Washington recently granted a motion brought by franchisor Nurse Next Door Home Healthcare Services, Inc. (NND) to compel arbitration of a Florida-based franchisee’s claims. Nurse Next Door Home Healthcare...more

Lathrop GPM

FTC Takes Action Impacting the Franchise Relationship

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On Friday, July 12, 2024, the Federal Trade Commission (“FTC”) published an analysis of the information it received in response to its Request for Information related to  franchisors’ business practices, launched in March...more

Polsinelli

FTC Issues Statements Signaling Major Changes to its Oversight of Franchise Relationships and Franchise Disclosure Requirements

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On July 12, 2024, the FTC released several statements and a News Release as its first response to comments collected in response to the March 2023 Franchise Request for Information (RFI). These actions are part of the FTC’s...more

Lathrop GPM

New York Federal Court Concludes Interim Arbitration Order Is Final and Confirms the Order Requiring Franchisor’s Payments to...

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A federal court in New York recently ruled that an interim arbitration order was final and granted a developer’s petition to confirm the order which required the franchisor to make payments to the developer while the...more

Lathrop GPM

Minnesota State Court Grants Franchisor’s Motion for Preliminary Injunction Enjoining Franchisee from Violating Post-Termination...

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A state trial court in Minnesota granted Renters Warehouse USA, LLC’s motion for a temporary injunction, and enjoined Life Property Managers, LLC (LPM) from violating its post-termination obligations and a covenant not to...more

Lathrop GPM

Illinois Federal Court Denies Cross Motions for Summary Judgment on Breach of Contract and Guaranty Claims Due to Ambiguity in the...

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A federal court in Illinois recently denied cross motions for partial summary judgment as to franchisor 360 Painting, LLC’s claims for breach of contract by painting franchisee R. Sterling Enterprises, Inc. (RSE), and breach...more

Lathrop GPM

California Federal Court Grants Retail Franchisor’s Motion to Compel Arbitration and Dismisses Action

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A federal court in California recently granted a motion brought by a franchisor and two of its employees to compel arbitration and dismiss an action alleging violations of the California Franchise Investment Law, breach of...more

Lathrop GPM

Colorado Federal Court Denies Franchisee’s Motion to Dismiss on the Basis of Forum Non Conveniens Based on Forum Selection Clause...

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A federal court in Colorado denied WD Ventures, LLC’s motion to dismiss for forum non conveniens pursuant to the forum selection clause in the parties’ franchise agreement indicating that the parties contemplated federal...more

Foley & Lardner LLP

Federal Court Holds That Franchisee’s Owner Can Be Individually Bound by Franchise Agreement

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In Alamo Intermediate II Holdings, LLC. v. Birmingham Alamo Movies, the U.S. District Court for the Western District of Texas, denied franchise owner Hunter Renfroe’s motion to dismiss for lack of personal jurisdiction. The...more

Lathrop GPM

Bankruptcy Court Grants Motion of Franchisee Debtor to Reject Franchise Agreement, Concludes Noncompete and Confidentiality...

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A Michigan bankruptcy court recently granted debtor/franchisee Empower Central Michigan Inc.’s motion to reject a franchise agreement as an executory contract but found that a non-compete clause and a related confidentiality...more

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