A federal district court in New Jersey recently entered an unopposed default judgement for breach of contract against Mani Hotels, LLC and Mehulkumar Ahir arising from the early termination of a franchise agreement with Days...more
A federal court in California recently declined to dismiss a former franchisee’s suit against Nadia Gruzd, the CEO and COO of AllMed Search, a healthcare recruitment franchise system. Pasture Gate Holdings, Inc. v. Gruzd,...more
A federal court in North Dakota recently denied a motion to dismiss vicarious liability claims against the corporate entities constituting the Subway franchise system. C.S. v. Subway Worldwide, Inc., 2025 WL 472475 (D.N.D....more
3/10/2025
/ Assault ,
Corporate Liability ,
Criminal Convictions ,
Employment Litigation ,
Franchise Agreements ,
Franchisee ,
Franchises ,
Human Trafficking ,
Joint Employers ,
Kidnapping ,
Liability ,
Motion to Dismiss ,
Negligence ,
Sexual Assault ,
Subway ,
Vicarious Liability
A federal court in Ohio recently narrowed two hotel franchisors’ attempt to implead their franchisee in a lawsuit under the Trafficking Victims Protection Reauthorization Act (TVPRA). A.S. v. Red Roof Inns, Inc., 2024 WL...more
The California Court of Appeals upheld a decision finding that a Texas court had personal jurisdiction over California franchisees. GlobalCFO LLC v. Venkataramanappa, 2024 WL 4220439 (Cal. Ct. App. Sept. 18, 2024)....more
10/14/2024
/ Business & Professions Code ,
Franchise Agreements ,
Franchisee ,
Franchises ,
Franchisors ,
Motion to Vacate ,
Non-Compete Agreements ,
Non-Disclosure Agreement ,
Permanent Injunctions ,
Personal Jurisdiction ,
Venue
On Friday, July 12, 2024, the Federal Trade Commission (“FTC”) published an analysis of the information it received in response to its Request for Information related to franchisors’ business practices, launched in March...more
7/17/2024
/ Contract Terms ,
Disclosure ,
Federal Trade Commission (FTC) ,
Fees ,
Franchise Agreements ,
Franchisee ,
Franchises ,
Franchisors ,
FTC Act ,
New Guidance ,
Policy Statement ,
Request For Information
A state trial court in Minnesota granted Renters Warehouse USA, LLC’s motion for a temporary injunction, and enjoined Life Property Managers, LLC (LPM) from violating its post-termination obligations and a covenant not to...more
The Federal Circuit Court of Appeals reversed a preliminary injunction granted as to franchisor Urban Air’s patent and trade dress infringement claims against Kangaroo, LLC. UATP IP, LLC v. Kangaroo, LLC, 2024 WL 658205 (Fed....more
3/19/2024
/ Contract Termination ,
Default ,
Franchise Agreements ,
Franchisee ,
Franchises ,
Franchisors ,
Infringement ,
IP License ,
Patent Infringement ,
Patents ,
Preliminary Injunctions ,
Remand ,
Reversal ,
Trade Dress
An appellate court in California has affirmed a trial court’s rejection of more than $4 million in lost business profits, which appellant Glen Suh alleged in a breach of contract action against franchisor Boba Time, Inc. Suh...more
3/15/2024
/ Appeals ,
Breach of Contract ,
Business Litigation ,
Business Losses ,
Contract Terms ,
Exclusive Territory ,
Franchise Agreements ,
Franchisee ,
Franchises ,
Franchisors ,
Royalties
A federal court in Illinois recently granted partial summary judgment to LMLC Franchising, LLC (LMLC-F), LMLC Management, LLC (LMLC-M), and Todd Barnhardt on claims brought by John Doe and Aylin & Ramtin, LLC (A&R) for breach...more