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Franchisee Development Agreements

Lathrop GPM

Michigan Court of Appeals Affirms Dismissal of Certain Franchisee Claims Against Franchisor Due to Release of Liability and...

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The Michigan Court of Appeals recently affirmed a trial court’s dismissal of certain claims by franchisees Red Fit, LLC and Cali Red, LLC against franchisor Red Effect International Franchise, LLC based on a release of...more

Lathrop GPM

Oregon Federal Court Holds Nonsignatory Owners Are Not Subject to Arbitration Provision

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In a case involving an unorthodox procedural posture, a federal court in Oregon determined that nonsignatory franchisee owners are not subject to a franchise agreement arbitration provision. Goergen v. Black Rock Coffee B.,...more

Lewitt Hackman

Franchisee 101: Forum Selection Clause is Just what the Doctor Ordered

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A federal appellate court held that a forum selection clause requiring litigation to be in the jurisdiction where the franchisor’s principal place of business was located when the action was brought is enforceable. A...more

Lewitt Hackman

Franchisee 101: Meet the New Boss

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A Tim Hortons franchisee sued the franchisor for breach of six franchise agreements and an area development agreement. Tim Hortons counterclaimed for breach of contract based on failure by the franchisee to meet the...more

Lewitt Hackman

Franchisor 101: No Tax on Renewals

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A federal court in Virginia denied tax franchisor, Liberty Tax’s, motion to dismiss complaints by two of its area developers (“ADs”). The ADs claimed Liberty Tax breached their contract for wrongfully terminating, failing to...more

Lewitt Hackman

Franchisee 101: No Shaking Franchisor’s TRO

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An Indiana federal court granted hamburger and milkshake franchisor, Steak n Shake, a temporary restraining order (“TRO”) against a franchisee to enforce post-termination obligations under franchise and area development...more

Lewitt Hackman

Franchisee 101: Strong Releases Protect Fitness Franchisor

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A franchisee sued its franchisor, OsteoStrong Franchising, LLC, in Texas federal court after OsteoStrong terminated the franchise and development agreements. Termination occurred after the franchisee failed to timely develop...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

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