A federal court recently denied a dealer’s request for preliminary injunction to halt the termination of a dealership agreement with a manufacturer of liquor control systems. The dealer’s acts and omissions during the...more
6/30/2025
/ Appeals ,
Breach of Contract ,
Business Litigation ,
Contract Disputes ,
Contract Termination ,
Damages ,
Dealerships ,
Franchises ,
Litigation Strategies ,
Manufacturers ,
Non-Compete Agreements ,
Preliminary Injunctions
A federal court recently denied a franchisor’s motion to dismiss a workplace-abuse lawsuit filed by its franchisee’s employee because the employee stated a claim upon which relief could be granted under Federal Rule of Civil...more
A federal court recently granted in part and denied in part a franchisor’s motion to enjoin the post-termination activities of its former franchisees and two related entities. Rooterman, LLC is a plumbing services franchisor....more
6/23/2025
/ Business Litigation ,
Confidential Information ,
Enforcement Actions ,
Franchise Agreements ,
Franchises ,
Intellectual Property Litigation ,
Non-Compete Agreements ,
Non-Solicitation Agreements ,
Preliminary Injunctions ,
Restrictive Covenants ,
Trademark Infringement
A federal court recently enjoined a franchisor from terminating a franchise agreement or interfering with a franchisee’s operations pending the resolution of the franchisor’s motion to transfer venue....more
The Eighth Circuit recently applied a novel, broad reading of the Missouri Franchise Act granting franchise protection to distributors which previously would not likely have been considered franchisees....more
On May 1, 2025, the Wage and Hour Division (“WHD”) of the U.S. Department of Labor (“DOL”) issued a Field Assistance Bulletin stepping back from a restrictive independent contractor rule issued under the Biden...more
Effective June 1, 2025, the U.S. Small Business Administration (SBA) will reinstate its Franchise Directory, a critical development for franchise systems and franchisees seeking SBA financing. Originally launched in 2018 and...more
5/7/2025
/ Financial Institutions ,
Franchise Agreements ,
Franchises ,
Government Agencies ,
International Franchise Association (IFA) ,
Lenders ,
Loans ,
New Regulations ,
Regulatory Reform ,
SBA ,
SBA Lending Programs ,
Small Business
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
A recent New Jersey appellate court decision provides valuable guidance for franchisors and their in-house legal teams on structuring and protecting franchise relationships. The court affirmed that a terminated retailer of...more
In May of last year, the Federal Trade Commission (FTC) sought to ban non-compete agreements in most employment contracts. Franchise agreements were an exception. However, before the rule could take effect in September, a...more
2/18/2025
/ Antitrust Provisions ,
Compliance ,
Contract Terms ,
Federal Trade Commission (FTC) ,
Franchise Agreements ,
Franchises ,
Franchisors ,
NASAA ,
Non-Compete Agreements ,
Restrictive Covenants ,
Trade Secrets
With a Republican-controlled Congress and White House, business lobbyists are seizing the opportunity to push for permanent clarity on the issue of joint employment. The International Franchise Association (IFA) is advocating...more
2/6/2025
/ Compliance ,
Department of Labor (DOL) ,
Employment Litigation ,
Employment Policies ,
Fair Labor Standards Act (FLSA) ,
Franchises ,
Joint Employers ,
Labor Reform ,
New Legislation ,
NLRA ,
NLRB
A Washington state appeals court has clarified the scope of Washington’s Franchise Act in Lucid Group USA, Inc. v. State of Washington, Department of Licensing. There, Lucid Group USA, Inc. (“Lucid Group”), the dealer, wanted...more
On September 24, 2024, Governor Gavin Newsom signed Senate Bill 919 (“SB 919”), amending California’s Franchise Investment Law (“FIL”) to regulate franchise brokers and franchise sales organizations. The law will take effect...more
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
12/3/2024
/ Arbitration ,
Disclosure Requirements ,
Federal Trade Commission (FTC) ,
Franchise Agreements ,
Franchises ,
Franchisors ,
FTC Franchise Rule ,
Louisiana ,
Marketing ,
Misleading Statements ,
Motion to Compel ,
Personal Jurisdiction ,
Unfair or Deceptive Trade Practices ,
Washington
The Superior Court of Connecticut addressed a contractual dispute between a manufacturer of snow removal equipment and its distributor. HP Fairfield, a distributor of snow removal equipment, argued that a manufacturer, CIVES...more
A non-resident of Minnesota can sue a manufacturer for violation of the Minnesota Franchise Act. At the same time, the non-resident’s purchase of the manufacturer’s products at bona fide wholesale prices did not constitute...more
Tasty Baking Company (“Tasty”), a manufacturer of prepackaged goods, terminated Distefano, Inc. (“Distefano”), Maryland-based owner of a franchise with rights to sell Tasty products in a prescribed area called a “route.”...more
A recent court decision explained the circumstances under which a plaintiff may assert a claim for promissory estoppel and whether a private right of action exists for a certain alleged violation of the Michigan Franchise...more
9/11/2024
/ Advertising ,
Breach of Contract ,
Declaratory Judgments ,
Enforcement ,
Fees ,
Franchise Agreements ,
Franchisee ,
Franchises ,
Investment ,
Popular ,
Promissory Estoppel ,
Royalties
The U.S. District Court for the District of New Jersey refused a franchisee’s attempt to broaden the protections of the New Jersey Franchise Protection Act. William Minnebo and Philly Metal Supply LLC entered into a franchise...more
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
On October 26, 2023, the National Labor Relations Board (NLRB or “the Board”) issued its long-awaited final rule (“New Rule”) addressing the standard for determining joint-employer status under the National Labor Relations...more
11/2/2023
/ Browning-Ferris Industries of California Inc. ,
Employer Liability Issues ,
Federal Labor Laws ,
Final Rules ,
Franchises ,
Joint Employers ,
Labor Reform ,
Labor Regulations ,
Labor Relations ,
NLRA ,
NLRB ,
Regulatory Reform ,
Regulatory Requirements ,
Unions
The Texas Third Court of Appeals has offered guidance on the use of dealer incentive programs (DIPs) under the Texas Occupations Code (TOC). In Star Houston, Inc. v. Volvo Cars of North America, LLC and the Board of the Texas...more
In Acuff v. Dy N Fly, LLC, four female plaintiffs sued a franchisor of hair salons (Dy N Fly), two of its franchisees, and the owner of the two franchisees for wrongful retaliatory termination and sexual harassment in the...more
7/18/2023
/ Compensation ,
Employee Benefits ,
Franchises ,
Franchisors ,
Hostile Environment ,
Joint Employers ,
Motion to Dismiss ,
Retaliation ,
Severance Agreements ,
Sexual Harassment ,
Wrongful Termination
In Louis Degidio, Inc. v. Industrial Combustion, LLC, Louis Degidio, Inc. (Degidio) and Louis Degidio Services, Inc. (Degidio Services) sued Industrial Combustion, LLC (IC), a manufacturer of “institutional boiler system”...more
A case between a franchisor and franchisee in the U.S. District Court for the District of Minnesota offers guidance on interpreting Minnesota’s Franchise Act. In LG2, LLC v. American Dairy Queen Corp., LG2, LLC (LG2), a Dairy...more