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Trade Secrets Franchisors

A Trade Secret is any information, not generally known or easily ascertainable, by which an enterprise develops an economic advantage over competitors or customers. In order to maintain trade secrets'... more +
A Trade Secret is any information, not generally known or easily ascertainable, by which an enterprise develops an economic advantage over competitors or customers. In order to maintain trade secrets' protected legal status, enterprises must make reasonable efforts to keep the information secret and prevent unnecessary disclosure.  Trade Secrets may include processes, formulas, methods, designs, patterns, et cetera.   less -
Lathrop GPM

Virginia Federal Court Rules It has Subject Matter Jurisdiction Over DTSA Claim Because Foreign Bankruptcy Proceeding Only Stayed...

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A federal court in Virginia recently ruled that it had federal question subject matter jurisdiction over a Defend Trade Secrets Act (DTSA) claim, rejecting Defendants’ argument that a foreign bankruptcy proceeding stayed the...more

Lathrop GPM

Pennsylvania Federal Court Rules It Has Subject Matter Jurisdiction to Decide Trade Secret Claim but Dismisses as Untimely...

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A federal court in Pennsylvania granted in part and denied in part a former franchisee’s motion to dismiss a franchisor’s allegation that she misappropriated trade secrets and breached the franchise agreement. JTH Tax, LLC v....more

Lewitt Hackman

Franchisor 101: The Secret is Not in the Dough

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A Utah federal judge denied cookie franchisor Crumbl an injunction preventing its competitor, Dirty Dozen, from opening new locations while litigation between the two franchisors was pending....more

Bradley Arant Boult Cummings LLP

LADR Case Notes (August 2022-October 2022) and FLJ Currents (Winter 2023)

A gym franchisor recently secured a preliminary injunction against its former franchisee prohibiting the franchisee from operating an independent gym on the same location and using the franchisor’s trade secrets. Chris...more

Lewitt Hackman

Franchisor 101: Court Hits Brakes on Former Franchisees

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An Ohio appellate court upheld the state trial court’s decision to grant a permanent injunction against two former franchisees of an auto body shop franchise working for a competitor in violation of the franchise agreement’s...more

Lewitt Hackman

Franchisee 101: Docked Injunction

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After obtaining a temporary restraining order, Freedom Franchise Systems (“Freedom”), the franchisor of a boat-club business, was denied a preliminary injunction to stop a former franchisee prospect from using claimed trade...more

Lathrop GPM

Franchise Memorandum - Issue #270

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Second Circuit Affirms Dismissal of Franchisees’ Minimum Wage and Unjust Enrichment Claims - A divided panel of the Second Circuit Court of Appeals has concluded that claims of improper wage deductions and unjust...more

Lathrop GPM

The Franchise Memorandum - Issue # 266

Lathrop GPM on

Welcome to The Franchise Memorandum by Lathrop GPM. Below are summaries of recent legal developments of interest to franchisors. Post-Termination Injunction: Noncompete Covenants - California Federal Court Enforces...more

Lewitt Hackman

Franchisee 101: Trashing the Competition

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In a misappropriation of trade secrets action, a franchisor sued a prospective franchisee, claiming breach of a non-disclosure agreement ("NDA") by operating a competing business. The prospective franchisee signed the NDA...more

Lathrop GPM

The Franchise Memorandum - Issue 250

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Ohio Federal Court Awards Damages to Matco for Breach of Contract, Trademark Infringement, and Misappropriation of Trade Secrets - A federal court in Ohio has granted a franchisor’s unopposed motion for summary judgment...more

Seyfarth Shaw LLP

Federal Court Rules Against Calzone Franchisor In Meaty Lawsuit Against Former Franchisee

Seyfarth Shaw LLP on

In a meaty decision involving the intersection of restrictive covenant and franchise law, the United States District Court for the Southern District of Ohio recently denied a request by D.P. Dough Franchising, LLC (“D.P....more

Lewitt Hackman

FRANCHISOR 101: Original Content Needed to Protect Ops Manuals

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An important part of the franchise system is the confidential operating manual. Many franchisors claim protection of operating manuals under the law of trade secrets and copyright. Keeping the contents confidential is...more

Orrick - Trade Secrets Group

Trade Secret Sauce: Trade Secrets, Not Copyright, Protect Chefs

While they say that a grand jury could “indict a ham sandwich,” the First Circuit recently reminded chefs that you can’t copyright a chicken sandwich. Specifically, a former employee of a Puerto Rican Church’s Chicken...more

Snell & Wilmer

Global Connection - November 2013: Entering the U.S. Franchise Market: a Summary of Legal Considerations

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Franchisors that have developed successful programs in their home countries will frequently consider expansion opportunities in other countries. In the past, the U.S. was not necessarily an attractive venue in light of the...more

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