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Motion to Dismiss Franchise Agreements

Lewitt Hackman

Franchisee 101: Lights, Camera, Jurisdiction

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A federal district court in Texas denied an individual defendant’s motion to dismiss for lack of personal jurisdiction, finding the defendant—the owner of the company that was granted a franchise—was bound in his individual...more

Foley & Lardner LLP

Distributor’s Claims Against Manufacturer Under Puerto Rican Law Are Denied

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Lyvette Mercado Velez, a dietitian, entered into a distribution agreement with Insulet Corporation, a leading medical device manufacturer, to promote and sell diabetes treatment products and services in Puerto Rico. Shortly...more

Lathrop GPM

New York Federal Court Grants Hotel Franchisors’ Motion to Dismiss for Lack of Jurisdiction on Negligence Claims

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A federal court in New York recently granted a motion to dismiss for lack of personal jurisdiction in an action asserting claims that franchisor Hyatt Corporation acted with negligence in connection with assaults to guests...more

Foley & Lardner LLP

Federal Court Holds That Franchisee’s Owner Can Be Individually Bound by Franchise Agreement

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In Alamo Intermediate II Holdings, LLC. v. Birmingham Alamo Movies, the U.S. District Court for the Western District of Texas, denied franchise owner Hunter Renfroe’s motion to dismiss for lack of personal jurisdiction. The...more

Foley & Lardner LLP

Federal Court Protects Franchisor’s Rights Pursuant to Clear Terms of Franchise Agreement

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In Bank United, NA v. GC of Vineland, LLC, Karen and William Scism and GC Vineland, LLC (“GVC”) (collectively the “Scism Parties”) filed a complaint in the U.S. District Court for the District of New Jersey against Golden...more

Lewitt Hackman

Franchisor 101: Joint Employer? Check √

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A Maryland federal district court denied a restaurant franchisor’s motion to dismiss, concluding that a restaurant manager at a franchised location alleged sufficient facts to support a finding that the franchisor is a joint...more

Lewitt Hackman

Franchisor 101: Hunka, Hunka Confusion

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A federal district court in Florida denied a former moving and junk hauling franchisee’s motion to dismiss claims of trademark infringement and unfair competition by franchisor College Hunks Hauling Junk (“CHHJ”)....more

Lathrop GPM

Maine Federal Court Grants Franchisor’s Motion to Dismiss Age Discrimination Claim Brought by Franchisee’s Independent Contractor

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A federal court in Maine granted a franchisor’s motion to dismiss claims asserting that a franchisor was liable for its franchisee’s alleged age discrimination in employment. Goodwill v. Anywhere Real Est., 2023 WL 4034372...more

Lathrop GPM

Michigan Federal Court Grants Motion to Dismiss for Lack of Personal Jurisdiction and Forum Non Conveniens

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A federal court in Michigan granted a motion to dismiss claims that franchisor Bateel International, LLC had violated the Michigan Franchise Investment Law and the Texas Business Opportunity Act. Luxury Concepts, Inc. v....more

Lewitt Hackman

Franchisor 101: Pizza Franchisor’s Release Overcooked

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A federal district court denied a pizza franchisor’s motion to dismiss a former franchisee’s complaint, finding the former franchisee sufficiently pleaded the franchisor coerced the franchisee into signing a general release....more

Lathrop GPM

Delaware Bankruptcy Court Grants Motion to Dismiss Time-Barred Claims for Breach of Franchise Agreement

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A federal bankruptcy court in Delaware has dismissed time-barred claims that a Chapter 7 Trustee alleged on behalf of a bankrupt franchisor, AVF Franchising, LLC, against several of its franchisees. In re Start Man Furniture,...more

Lathrop GPM

Maryland Federal Court Denies Motion to Dismiss for Forum Non Conveniens but Grant’s Franchisee’s Motion to Dismiss for Personal...

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A federal court in Maryland granted a foreign hotel franchisee’s motion to dismiss for lack of personal jurisdiction but denied a forum non conveniens motion in a personal injury case naming both franchisor and franchisee as...more

Lewitt Hackman

Franchisee 101: Subject Matter Mania…

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A federal court in Florida dismissed an action by franchisees against their franchisor for lack of subject-matter jurisdiction. The franchisees asserted claims under California and Florida laws alleging the franchisor, OR...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: Real Estate Amendment Not Up to Interpretation

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A franchisee sued real estate franchisor Century 21 for a declaration whether the franchisee could end its franchise agreement early despite a provision that deleted the franchisee’s early termination right. Noting the...more

Lathrop GPM

The Franchise Memorandum - Issue # 260

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Welcome to The Franchise Memorandum by Lathrop GPM, formerly known as The GPMemorandum. Periodically, The Franchise Memorandum focuses on topics primarily of interest to companies that use distributors and dealers rather than...more

Foley & Lardner LLP

The FranChoice, Inc. Cases – A Case Study in Extraterritorial Application of Franchise Laws

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A series of cases decided last December included claims under four different states’ franchise laws, and thus serve as a compact case study of the circumstances when the franchise laws of these states—New York, Michigan,...more

Seyfarth Shaw LLP

California Supreme Court Clarifies Pleading Requirements for Claims of Tortious Interference with At-Will Contracts and Adopts...

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Called upon by the Ninth Circuit in Ixchel Pharma, LLC v. Biogen, Inc. to answer two key questions concerning the validity of a settlement provision requiring a party’s termination of a collaboration agreement with a...more

Lewitt Hackman

Franchisee 101: A Franchisor Without Urgency

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A federal court in Alabama denied an urgent care franchisee’s motion to dismiss a suit brought by its franchisor. The franchisee argued the franchise agreement required suits to be brought within a one-year period. But the...more

Lewitt Hackman

Franchisee 101: Over Supply of Gasoline Burns Potential Sale

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A gasoline franchisee defeated a motion to dismiss brought by its franchisor, seeking to avoid a claim under the federal Petroleum Marketing Practices Act (PMPA). In 2018, Global Companies (Global) sent the franchisee a...more

Akin Gump Strauss Hauer & Feld LLP

A Fresh Approach to No-Poach Provisions in Franchise Agreements

• The Antitrust Division of the Department of Justice (DOJ) and the Federal Trade Commission (FTC) have indicated in the past that they believe that certain agreements between employers not to poach each other’s employees are...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

BakerHostetler

Update: Section 1 Challenge to Jimmy John’s No-Poach Agreement Survives Motion to Dismiss

BakerHostetler on

We recently wrote that the Department of Justice’s and the Federal Trade Commission’s announcements condemning no-poaching agreements have sparked civil class actions, including a putative class action against Jimmy John’s....more

Foley & Lardner LLP

Franchisor Bankruptcy Case Dismissed as a Bad Faith Filing

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The United States Bankruptcy Court for the District of Delaware recently issued an opinion discussing the tension between using bankruptcy as a legitimate tool to maximize value versus using bankruptcy merely as a litigation...more

Shook, Hardy & Bacon L.L.P.

Food & Beverage Litigation Update | January 2018 #3

House Panel Questions FDA Officials on Food-Recall Audit - One day after the U.S. Food and Drug Administration (FDA) issued draft guidance on proposals to expedite product warnings and recalls, FDA and other health officials...more

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