News & Analysis as of

Fraud Franchisors

Fraud is the making of false representations or engaging in deceptive behavior in order to unlawfully secure financial or personal gain. 
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

Eleventh Circuit Holds Franchisor’s Justified Threat of Criminal Prosecution Does Not Justify Setting Aside Settlement Agreement...

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The Eleventh Circuit Court of Appeals recently upheld a settlement agreement between a franchisor and former franchisee that the franchisee alleged was obtained under the threat of criminal prosecution. Sewalk v. Valpak...more

Lathrop GPM

Illinois Federal Court Grants Franchisor’s Motion to Dismiss Terminated Franchisee’s Fraudulent Misrepresentation and Breach of...

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A federal court in Illinois recently dismissed a former franchisee’s counterclaims for alleged fraudulent misrepresentation, breach of contract regarding the franchisor’s advertising fund, and breach of contract and implied...more

Foley & Lardner LLP

Federal District Court Offers Broad Ruling on a Franchisor and Individual Officer’s Motion to Dismiss

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A franchisee, Functional HIIT Fitness, has filed suit in U.S. District Court in the Eastern District of Michigan against a franchisor, F45 Training Incorporated, and five of its officers: Adam Gilchrist, Robert Deutsch, Marc...more

Lathrop GPM

North Carolina Federal Court Rules That Franchise Agreement’s 1-Year Statute of Limitations Clause Barred Action Against...

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A federal court in North Carolina recently dismissed a complaint brought by Bigelow Corporation against its franchisor Hound Town USA because the claims were time barred. Bigelow Corporation v. Hounds Town USA, LLC, 2023 WL...more

Fox Rothschild LLP

NASAA Adopts New Franchise Questionnaire Policy

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As expected, the North American Securities Administrators Association (NASAA) announced last week that it voted to adopt a “Statement of Policy Regarding the Use of Franchise Questionnaires and Acknowledgements” (NASAA...more

Lathrop GPM

The Franchise Memorandum - Issue #269

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Two Illinois Federal Courts Deny Class Certification in Anti-Poaching Class Actions Against Franchisors - Two federal courts in Illinois have rejected motions to certify classes of employees who worked in franchised...more

Lathrop GPM

The Franchise Memorandum - Issue # 268 (Distribution Issue)

Lathrop GPM on

Welcome to The Franchise Memorandum by Lathrop GPM. Periodically, The Franchise Memorandum focuses on topics primarily of interest to companies that use distributors and dealers rather than manage a business format franchise...more

Lathrop GPM

The Franchise Memorandum - Issue # 265

Lathrop GPM on

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

Lathrop GPM

The Franchise Memorandum - Issue # 261

Lathrop GPM on

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

Lathrop GPM

The Franchise Memorandum - Issue # 257

Lathrop GPM on

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

Foley & Lardner LLP

Liar, Liar: Texas Supreme Court Rejects Fraud As Basis For Ignoring Dealer Agreements

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One of the most important tools manufacturers and franchisors have available to manage their networks are the agreements they sign with their channel partners. Significant time and effort go into those contracts, ensuring...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

Lewitt Hackman

Franchisor 101: The Proof Is in the Writing

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Ten years after the franchisor of the EXIT real estate system entered into a franchise agreement for a franchisee to operate an EXIT franchise in Maitland, Florida, the parties entered into another franchise agreement for a...more

Lewitt Hackman

Franchisor 101: Hot Doggin' Franchisee Sales Pitches

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Hot dog franchisor, Charlie Graingers, was unable to obtain dismissal of a federal lawsuit brought by franchisees alleging fraud, misrepresentation and breach of fiduciary duty....more

Lewitt Hackman

FRANCHISOR 101: Liability as Certain as Death & Taxes

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Structuring a franchise to reduce risk of joint employment and vicarious liability means limiting a franchisor's control over franchisees. This is a challenge in a professional services franchise, where the brand is...more

Baker Donelson

California Dreams Becoming Reality for Franchisees; Amended Franchise Relationship Law Nears Passage

Baker Donelson on

The California State Assembly saw the seventh amended version of proposed changes to the California Franchise Relationship Act (CFRA) introduced August 17, 2015. This amendment is the product of industry negotiations that...more

Lewitt Hackman

Focused on Franchise - April 2014

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FRANCHISEE 101: Terminated Franchisee Can Pursue Fraudulent Disclosure Claims - In Solanki v. 7-Eleven, Inc., a U. S. District Court in New York ruled that a terminated 7-Eleven franchisee who decided to purchase a...more

Lewitt Hackman

Focused on Franchise Law - February 2014

Lewitt Hackman on

FRANCHISOR 101: Franchisor Successfully Fends Off Fraud Claims - There are circumstances when a fraud claim will not succeed against a franchisor. In Dunkin' Donuts Franchised Restaurants, LLC v. Claudia I, LLC, a...more

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