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Federal Court Enforces Forum Selection Clause in Dealer Dispute with Equipment Manufacturer

A federal district court recently enforced a forum selection clause in National Equipment Dealers, LLC v. IROCK Crushers LLC, transferring the case to Ohio and confirming the enforceability of venue clauses in commercial...more

Franchise Agreement Requiring Out of State Mediation Is Unenforceable in California Background

Dispute resolution provisions in franchise agreements often address how, when, and where parties will mediate. However, the enforceability of these provisions can change depending on the law of the state governing the...more

Actions Speak Louder Than Words: A Franchise Relationship Can Exist in Spite of a Contract’s Express Terms to the Contrary

In OTG New York, Inc. v. Ottogi America, Inc., OTG was the exclusive regional distributor for food company Ottogi from 2008–23, during which Ottogi shipped inventory to OTG’s New Jersey warehouse. In 2024, Ottogi terminated...more

Permissive Forum Selection Clause Is Not Enforceable in Franchisor’s Suit Against Franchisee

A key term of any franchise agreement is the venue selection clause as this page has previously explained. This issue was at the forefront of Convenience Stores Leasing & Management, LLC’s (“CSLM”) August 2024 suit...more

Franchise Agreements’ Arbitration Clauses Are Enforced Over Forum Selection Clauses in Subsequent Agreements with Franchisor

Franchise agreements’ arbitration clauses are enforceable even when subsequent agreements between the same parties contain forum selection clauses requiring litigation in different forums. Additionally, a trial court’s...more

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

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

Sixth Circuit Holds Michigan Franchise Investment Law Voids Forum Selection Clause

The Sixth Circuit has held that a contractual forum-selection clause in a franchise agreement was unenforceable because it violated state law. In Lakeside Surfaces, Inc. v. Cambria Company, LLC, Lakeside Surfaces, a...more

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