A federal district court in Michigan granted a preliminary injunction in favor of tax preparation franchisor, Liberty Tax Service (JTH Tax, Inc. v. Magnotte, E.D. Mich., ¶16,575), finding it was likely to succeed on its...more
5/1/2020
/ Anti-Competitive ,
Breach of Contract ,
Contract Termination ,
Customer Lists ,
Franchise Agreements ,
Franchisee ,
Franchises ,
Franchisors ,
Irreparable Harm ,
Loss of Goodwill ,
Lost Profits ,
Non-Compete Agreements ,
Preliminary Injunctions ,
Tax Preparers
A Wisconsin pizza maker, Heggie’s Pizza (Heggie’s) argued that its relationship with a purported pizza distributor A & B Distribution (A&B), did not meet the Wisconsin Fair Dealership Law (WFDL) definition of a “dealership.”...more
2/5/2020
/ Breach of Contract ,
Community of Interest ,
Contract Termination ,
Dealerships ,
Distributors ,
Food Manufacturers ,
Food Safety ,
Franchise Acts ,
Franchise Agreements ,
Franchisee ,
Good Cause ,
Notice Requirements ,
Oral Contracts ,
Right To Cure ,
State Law Claims
Twin City Lodging LLC bought a Best Western Hotel in Mankato, Minnesota, then entered into a “Membership Agreement” with Best Western International. Best Western granted Twin City a license to operate the hotel under Best...more
10/1/2019
/ Best Western ,
Breach of Contract ,
Community of Interest ,
Counterclaims ,
Franchise Fees ,
Franchise Termination ,
Franchisee ,
Franchises ,
Franchisors ,
Hotels ,
Licenses ,
Motion to Dismiss ,
Notice Requirements ,
Trademark Infringement
Ten years after the franchisor of the EXIT real estate system entered into a franchise agreement for a franchisee to operate an EXIT franchise in Maitland, Florida, the parties entered into another franchise agreement for a...more
7/31/2019
/ Appeals ,
Breach of Contract ,
Damages ,
Franchise Agreements ,
Franchisee ,
Franchisors ,
Fraud ,
Oral Contracts ,
Promissory Estoppel ,
Real Estate Transactions ,
Reversal ,
Statute of Frauds ,
Unjust Enrichment ,
Void and Unenforceable ,
Written Agreements
Eskimo Hut, a franchisor of convenience stores that sell frozen daiquiris-to-go, convinced a Texas appellate court that it would probably win on claims that South Plains, a franchisee using a nonconforming drink mix, breached...more
On May 20, 2019, the U.S. Supreme Court ruled that a bankrupt debtor’s “rejection” of a trademark licensing agreement does not terminate the licensee’s rights. This was under a part of the Bankruptcy Code that provides for...more
6/3/2019
/ Bankruptcy Code ,
Breach of Contract ,
Commercial Bankruptcy ,
Debtors ,
Executory Contracts ,
Franchisee ,
Franchisors ,
IP License ,
Mission Product Holdings Inc v Tempnology LLC ,
Rescission ,
Reversal ,
SCOTUS ,
Split of Authority ,
Trademark Licenses ,
Trademarks
A 7-Eleven franchisee of more than 40 years brought claims that the convenience store franchisor engaged in a region-wide scheme, dubbed “Operation Philadelphia,” to force older franchisees to terminate their franchise...more
5/2/2019
/ 7-Eleven ,
Breach of Contract ,
Bullying ,
Debit and Credit Card Transactions ,
Failure to Notify ,
Franchise Agreements ,
Franchisee ,
Franchisors ,
Independent Contractors ,
Investment Schemes ,
Transaction Fees
The U.S. Sixth Circuit Court of Appeals upheld summary judgment for franchisor Buffalo Wild Wings (“BWW”) rejecting a restaurant operator’s counterclaims for wrongful termination, malicious prosecution, and breach of...more
5/1/2019
/ Abeyance ,
Breach of Contract ,
Counterclaims ,
Declaratory Rulings ,
Franchise Agreements ,
Franchisors ,
License Agreements ,
Licensees ,
Malicious Prosecution ,
Notice of Default ,
Restaurant Industry ,
Summary Judgment ,
Trademark Licenses ,
Wrongful Termination