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Fraudulent Inducement Franchisors

Lathrop GPM

Tennessee Federal Court Compels Arbitration in Fraudulent Inducement Dispute

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A federal court in Tennessee recently compelled arbitration for parties in a franchise disclosure dispute. B&P Glass Mirror, LLC v. Clozetivity Franchising, LLC, 2023 WL 3484205 (M.D. Tenn. May 16, 2023). Plaintiff B&P...more

Lathrop GPM

Tennessee Federal Court Compels Arbitration in Fraudulent Inducement Case and Grants Preliminary Injunction Enjoining Enforcement...

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A federal court in Tennessee granted franchisor Frost Shades’ motion to compel arbitration of franchisee Lunt’s fraudulent inducement of contract claims, but the court also granted in part franchisee Lunt’s request for a...more

Lathrop GPM

New Jersey Federal Court Finds Franchisee’s Defense of Fraudulent Inducement Sufficient to Block Franchisor’s Motion for Summary...

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A federal court in New Jersey has denied a franchisor’s motion for summary judgment on its claim for breach of contract by its franchisee, finding that the franchisee raised issues of material fact regarding whether it had...more

Lewitt Hackman

Franchisee 101: Transaction Totaled

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Franchisee Cipercen, LLC operated several Meineke Car Care Centers. By 2017, Cipercen owed $550,000 in unpaid franchise fees to Meineke and decided to sell the franchises. Cipercen believed Meineke offered to waive the unpaid...more

Lathrop GPM

The Franchise Memorandum - Issue # 261

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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

Lewitt Hackman

FRANCHISOR 101: Catch-all Disclaimers No Substitute for Untrained Salespeople

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How strong are "non-reliance disclaimers" or "integration" or "merger" provisions in franchise agreements at protecting a franchisor when it really matters? Only so much, a New York court recently decided....more

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