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Unfair or Deceptive Trade Practices Franchises

Lathrop GPM

Ohio Federal Court Dismisses Franchisees’ Class Action Against Luxottica

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A federal court in Ohio dismissed a putative class action brought by franchisee-eyewear sellers against their franchisor, Luxottica of America. Brave Optical, Inc. v. Luxottica of Am. Inc., 2025 WL 962827 (S.D. Ohio Mar. 31,...more

Lathrop GPM

Washington Court Grants Summary Judgment Against Attorney General and Awards Fees to Franchisor

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A state court in Washington has granted summary judgment and awarded over $3.4 million in attorneys’ fees and costs to a franchisor in a dispute brought by the Washington Attorney General under the Washington’s Consumer...more

Foley & Lardner LLP

Louisiana Based Franchisor and Its Employees Cannot Avoid Personal Jurisdiction in Washington State

Foley & Lardner LLP on

Washington-state based franchisees Greg and Gabriela Skistimas brought suit against Hotworx Franchising LLC in the U.S. District Court for the Western District of Washington alleging misleading and unfair practices related to...more

Lathrop GPM

Minnesota Supreme Court Holds that Franchisees Based Outside of Minnesota Are Not Barred from Asserting Claims Under the Minnesota...

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The Supreme Court of Minnesota has held that there is no territorial limit to the Minnesota Franchise Act’s (MFA) provision barring unfair practices, but nevertheless affirmed dismissal of MFA claims where the parties’...more

Cozen O'Connor

FTC Announces New Efforts Targeting Unfair and Deceptive Franchisor Practices

Cozen O'Connor on

The FTC announced that it has taken multiple actions to address growing concern about unfair and deceptive practices by franchisors. The FTC released a Policy Statement on Franchisors’ Use of Contract Provisions, Including...more

Fox Rothschild LLP

A Tax(ing) Return: Sale of Prep Franchises Fails and Remaining Assets Come Back

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In a dispute about tax preparation businesses that one member of Compass Tax Services LLC was selling to the entity, precious little was for certain. Even the parties’ agreement lacked clarity about whether Compass Tax, or...more

Lathrop GPM

Massachusetts Federal Court Grants Manufacturer’s Motion to Dismiss Distributor’s Franchise Law Counterclaims

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A federal court in Massachusetts has dismissed franchise claims brought against a manufacturer, concluding that the distributor had failed to identify a franchise fee that would qualify it for protection from non-renewal...more

Fox Rothschild LLP

Violation of Settlement Agreement Deemed Non-Dischargeable

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Rarely do we see a franchise dispute settled, only to generate more litigation. In Pirtek USA, LLC v. James Bradley Lager, et al., 2023 WL 4676067 (Bankr. N.D. Texas, 2023), Bankruptcy Judge Michelle Jerson addressed several...more

Polsinelli

FTC Turns Its Attention to Franchising

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On Friday, March 10, 2023, the Federal Trade Commission issued a Request for Information (“RFI”) soliciting public comments on various issues pertaining to the franchisor-franchisee relationship, including franchisor supply...more

Shook, Hardy & Bacon L.L.P.

Buffalo Wild Wings Deceives Consumers on its Boneless Wings, Man Alleges

An Illinois man has filed a lawsuit against Buffalo Wild Wings, accusing the restaurant chain of misleading consumers into believing its boneless wings are actually chicken wings. Halim v. Buffalo Wild Wings Inc., No. 23-1495...more

Foley & Lardner LLP

Federal Appeals Court Rules on Franchisor’s Power to Impose Changes on Franchise System

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The Eleventh Circuit Court of Appeals recently issued an opinion concerning a dispute over a franchisor’s effort to mandate changes to a franchisee’s operations. The Court granted the franchisor a mixed result. The decision...more

Stark & Stark

FTC Issues Penalty Offenses Concerning Money Making Opportunities to Hundreds of Franchise Companies

Stark & Stark on

The Federal Trade Commission (“FTC”) has kept itself busy as of late, issuing a series of notices to over 1,000 businesses (many of them franchise companies) advising them that they could face civil penalties for conduct that...more

Foley & Lardner LLP

Federal Court Dismisses Case When Franchisee Association Fails to Satisfy Requirements to Establish Associational Standing

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A recent federal court decision explores the concept of associational standing, the right of an association of franchisees to sue a franchisor on behalf of its member franchises. In APFA Inc. v. UTAP Management, LLC, the...more

Cozen O'Connor

Wine Asset Sale Watered Down | Fake Vaccination Cards | Misleading Franchisee Offer

Cozen O'Connor on

2022 AG Elections- County District Attorney Launches Bid for Wisconsin Attorney General- •Fond du Lac County DA Eric Toney announced his candidacy for the Republican nomination in the 2022 race for the Wisconsin AG’s...more

Lewitt Hackman

New Franchise Regulations on the Horizon?

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On September 16, 2020, Rohit Chopra, one of the five commissioners on the Federal Trade Commission (FTC), declared on Twitter that “[franchise] regulators must stop unfair, deceptive, and discriminatory practices that target...more

Lewitt Hackman

FRANCHISEE 101: Recruitment Reprimand

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A Massachusetts state court ruled that real estate franchisor, Re/Max of New England (Franchisor), breached its franchise agreements, the implied covenant of good faith and fair dealing and violated Massachusetts’ consumer...more

Lewitt Hackman

FRANCHISEE 101: Bar-B-Q Blues — A Tale of Friendship, Partnership, and Deceit

Lewitt Hackman on

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

Holland & Knight LLP

Food and Beverage Law Update: February 2020

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Individual Examination into Effect of Alleged False "No Artificial Flavors" Label Necessary - In Marotto v. Kellogg Co., No. 18 Civ 3545, 2019 WL 6798290 (S.D. N.Y. Dec. 5, 2019), the court declined to certify a putative...more

Seyfarth Shaw LLP

Fast Food Restaurant Scores A Victory in Dismissal of Food Marketing Class Action

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A federal judge recently held that a plaintiff cannot state a claim for false advertising under Illinois law by cherry picking statements in isolation if, on the whole, the information available to plaintiff dispelled the...more

Baker Donelson

Failure to Follow Franchising Disclosure Laws Isn't Necessarily Unfair Trade Practice

Baker Donelson on

The recent Cooper v. Primary Care Solutions considered, among other things, franchising law in the context of the Louisiana Unfair Trade Practice Act (LUTPA), which punishes unfair and deceitful conduct in the conduct of...more

Shook, Hardy & Bacon L.L.P.

Food & Beverage Litigation Update | February 2018

Cooke Aquaculture Fined $332,000 For Puget Sound Salmon Pen Collapse - The Washington Department of Ecology has reportedly fined Cooke Aquaculture $332,000 for violations of state water quality laws related to a net pen...more

Perkins Coie

Rulings, Orders, Settlements – January 30, 2018

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Parties Settle Kombucha False Advertising Action - Retta, et al. v. Millennium Products, Inc., No. 2:15-cv-01801 (C.D. Cal.): The Ninth Circuit entered an order granting Objector-Appellant’s motion for voluntary dismissal...more

Seyfarth Shaw LLP

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

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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

Dorsey & Whitney LLP

Cybersecurity: New Front for Attacks on Franchise Model

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Much has been written on the growing risks of data breaches and other cyberattacks, especially after the massive security breach at Equifax in September 2017. Recent cases holding franchisors liable for franchisees’ data...more

Lewitt Hackman

FRANCHISEE 101: What to Do About Franchisor’s Harmful New Policies

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Franchisees aren't always excited when their franchisor introduces a new policy. But if a new policy overreaches and might doom a franchisee's business, can it be stopped before it starts?...more

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