3 Key Takeaways | Is Franchising Doomed? The 2024 Version
Is Franchising Doomed?
II-27 - Our 1st Anniversary Special: Bringing Back Our Inaugural Guest to Discuss What Was and What Will Still Be With President Trump
Employment Law This Week: Break Pay, Misclassification of Franchisees, California Computer Professional Exemption, Non-Compete Payment
A federal court in Florida recently declined to apply a choice-of-law provision in a dealership agreement between the parties on public policy grounds. MI-BOX of North Florida, LLC v. MI-BOX Florida, LLC, 2026 WL 821207...more
A federal court in Ohio recently granted summary judgment to an automotive manufacturer, finding that discontinuation of a certain line of commercial vehicles did not amount to termination of a franchise under the Ohio Motor...more
Ontario appellate courts continue to underscore that civil conspiracy claims must observe principles of corporate separateness. In Cervantes v. Pizza Nova Take Out Ltd., 2026 ONSC 713, the Ontario Divisional Court reaffirmed...more
The US Court of Appeals for the Sixth Circuit affirmed a district court’s partial denial of a franchisor’s request for a preliminary injunction, finding that the franchisor’s inequitable conduct barred broader injunctive...more
A California federal court denied a franchisee’s motion for summary judgment on its California Franchise Investment Law (“CFIL”) claims and denied the franchisee’s request to add new affirmative defenses....more
A Utah federal court denied a motion by Larada Sciences, Inc. (“LCA”), a franchisor of lice clinics, for a preliminary injunction preventing a former LCA franchisee, The MIH Group, LLC (“MIH”), from operating competing lice...more
Preventable Consequences. The Federal Trade Commission has obtained a landmark $17 million settlement against Xponential Fitness, a franchisor operating popular fitness brands including Club Pilates, Pure Barre, YogaSix,...more
A federal court in Virginia granted in part a franchisee’s motion to dismiss the counterclaims filed by franchisor Window Gang, LLC in the parties’ dispute. Willett v. Window Gang, LLC, 2026 WL 575903 (W.D. Va. Mar. 2, 2026)....more
New Jersey franchised auto dealers stand to gain significant increases in warranty and recall reimbursements under a sweeping new law that takes effect April 1, 2026. The Motor Vehicle Open Recall Notice and Fair Compensation...more
The U.S. District Court for the Southern District of Ohio granted in part and denied in part Brave Optical’s motion for reconsideration of the court’s earlier dismissal of its claims against Luxottica. Brave Optical Inc. v....more
In a dispute over whether the Fair Labor Standards Act precludes the settlement of non-FLSA claims, the Eleventh Circuit held that, when a settlement agreement settles both FLSA and non-FLSA claims, the FLSA does not limit...more
The U.S. District Court for the District of North Dakota granted a franchisee’s motion to dismiss for failure to state a claim and its motion for Rule 11 sanctions, finding that franchisor ABC, Inc. improperly attempted to...more
A federal court in New York recently dismissed a case for lack of diversity subject matter jurisdiction where the franchisee plaintiff and a franchisor defendant were both foreign entities, even though they both maintained...more
A Utah federal court denied a motion by Larada Sciences, Inc. d/b/a Lice Clinics of America (“LCA”) for a preliminary injunction preventing former LCA franchisee The MIH Group, LLC from operating competing lice treatment...more
A recent decision from the Connecticut Appellate Court highlights how commission‑based fuel arrangements can limit franchise liability when suppliers retain control over pricing and inventory. In Branford Quick Mart, LLC v....more
The Connecticut court of appeals held that petroleum retailers were not franchisees, and therefore not entitled to the protections afforded under the Connecticut Petroleum Franchise Act (CPFA)....more
The National Labor Relations Board officially restored a business-friendly joint-employer rule on February 26 in the latest chapter of a saga that has spanned the last decade. The new final rule makes it more difficult for...more
A Louisiana district court held that a franchisee waived its right to remove a dispute with its franchisor from state court to federal court, based on the forum selection clause in the parties’ franchise agreement....more
A federal court in North Carolina granted Liberty Tax Service’s motion for summary judgment and denied the cross-motion of its franchisee, entering judgment for Liberty on claims for breach of franchise agreements and default...more
In 1 Percent Lists Franchises, LLC v. Sell Smart, LLC, 2026 WL 183512 (E.D. La. Jan. 23, 2026), 1 Percent Lists Franchises, a real estate franchisor brought claims in state court against Sell Smart, a former franchisee, and...more
The Minnesota district court granted a motion for judgment on the pleadings by John Golle, the CEO and an owner of the Urbanize Farms franchise system, and dismissed with prejudice all claims brought by former franchisee Big...more
The Connecticut Appellate Court held that convenience store operators who dispensed fuel as commissioned agents were not “retailers” under the Connecticut Petroleum Franchise Act (CPFA). Branford Quick Mart, LLC v. Aldin...more
The U.S. District Court for the District of New Jersey granted a motion for summary judgment in favor of Lehigh Gas, a franchisor of gas stations and convenience stores, finding that it properly terminated seventeen franchise...more
Understanding joint employer liability is critical for companies in the franchise sector, as it directly impacts risk management and compliance. If the American Franchise Act (AFA) were enacted, it would provide significant...more
A Washington district court analyzed whether franchisor Wyndham Hotels & Resorts could be held vicariously liable under the Trafficking Victims Protection Reauthorization Act (“TVPRA”). The plaintiff alleged she was...more