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Before committing to a franchise business, consider...
A federal court in North Dakota recently denied a motion to dismiss vicarious liability claims against the corporate entities constituting the Subway franchise system. C.S. v. Subway Worldwide, Inc., 2025 WL 472475 (D.N.D....more
A federal court in Ohio recently granted, in part, defendants’ motion to dismiss various TVPRA claims and denied their motion to transfer in a suit concerning alleged sex trafficking at two Red Roof Inn locations in Virginia...more
A federal court in California recently granted summary judgment in favor of a hotel franchisor on sex trafficking claims brought under the Trafficking Victims Protection Reauthorization Act (TVPRA). J.M. v. Red Roof Inns,...more
An appellate court in Illinois upheld a trial court’s dismissal of claims that franchisor was vicariously liable for the alleged actions of its franchisees. Shavers v. The UPS Store, Inc., 2023 IL App (1st) 221407-U (Ill....more
An appellate court in Louisiana recently affirmed summary judgment in favor of a franchisor, dismissing negligence and premises liability claims asserted by a customer was injured on unauthorized exercise equipment. Flynn v....more
Welcome to The Franchise Memorandum by Lathrop GPM. Below are summaries of recent legal developments of interest to franchisors. Fraud/Misrepresentation - Minnesota Federal Court Rules that Fraud and Misrepresentation...more
Welcome to The Franchise Memorandum by Lathrop GPM, formerly known as The GPMemorandum. Below are summaries of recent legal developments of interest to franchisors. Given the widespread and evolving impact of the COVID-19...more
Welcome to The Franchise Memorandum by Lathrop GPM, formerly known as The GPMemorandum. Since December 1997, The GPMemorandum has been presenting summaries of recent legal developments of interest to franchisors and companies...more
Real Property Update - Foreclosure / Rehearing: Order denying rehearing on summary judgment motion and denying continuance affirmed where (1) affidavit in support of rehearing failed to disclose any genuine issue of...more
In 2018, the Supreme Court of California turned much of the established law regarding worker classification on its head with its decision in Dynamex Operations West Inc. v. Superior Court....more
Another case has been decided adding to the back and forth in the legal world on the issues of a joint employer relationship of a franchisor and its franchisee and vicarious liability and agency between a franchisor and...more
In a recent article published by the Franchise Law Journal, authors Mary-Christine Sungaila and Martin M. Ellison survey the current status of joint employer liability in the franchise context and the pervasive influence of...more
On August 27, 2015 the NLRB expanded its joint-employer test, which union supporters hope will apply to franchising. See January 2015 WaronFranchising.com blog entry for background. In a 3-2 decision on partisan lines, the...more
The California Supreme Court recently issued an important victory for franchisors, finding that a franchisor does not stand in an employment or agency relationship with the franchisee and its employees for purposes of holding...more
In This Issue: - SEC Pays First Whistleblower Award to Audit and Compliance Professional - Supreme Court Allows Affordable Care Act Contraceptives Religious Exemption - EEOC Adopts New Pregnancy...more
Franchise agreement recitals declaring your franchisee to be an independent contractor, not an employee, are not dispositive! Until now, the spotlight has never shined so brightly on franchising and, specifically, on...more
The California Supreme Court recently held in Patterson v. Domino’s Pizza, LLC, No. S204543 (Cal. Aug. 28, 2014) that a franchisor could not be held vicariously liable under the California Fair Employment and Housing Act...more
In Taylor Patterson v. Domino’s Pizza, LLC, the California Supreme Court restricted the ability of a franchisee’s employees to sue the franchisor based on theories of vicarious liability and the theory that the franchisor was...more
In a significant win for franchisors, the California Supreme Court ruled 4-3 that although Domino’s “imposes comprehensive and meticulous standards for marketing its trademarked brand and operating its franchises in a uniform...more
On August 28, 2014, the Supreme Court of California, in Patterson v. Domino's Pizza, LLC, decided whether a franchisor was entitled to summary judgment on the plaintiff's claims that the franchisor was vicariously liable for...more
On August 28, 2014, the California Supreme Court issued a landmark ruling in favor of Domino's Pizza and all business format franchisors that do business in California. In Patterson v. Domino's Pizza, LLC, ---P.3d---, 2014 WL...more
Patterson v. Domino’s Pizza, LLC, No. S204543 (August 28, 2014): On August 28, 2014, the California Supreme Court issued a decision holding that a franchisor that did not exhibit the characteristics of an “employer” was not...more
In a move with far-reaching ramifications for all businesses that license their brands to independent contractors including franchisees, the National Labor Relations Board (“NLRB”) announced on July 29, 2014 that it has...more
One of the hallmarks of franchising is consistency of the brand and operations across the franchise system. If well executed, that consistency gives the public the impression that the franchise system is a centrally-owned...more
FRANCHISOR 101: FRANCHISOR NOT LIABLE FOR ACTIONS OF FRANCHISEE'S MANAGERS - Cortland, a former bartender, sued GECP-Sunrise, LLC, a Buffalo Wild Wings franchisee, and its franchisor, Buffalo Wild Wings, Inc., claiming...more