A federal court in Arizona recently granted a franchisee’s motion for temporary restraining order preventing termination of its franchise agreement and the franchisor’s withdrawal of any funds from the franchisee’s accounts....more
A federal court in California recently granted franchisor Spiffy Franchising, LLC’s motion to compel arbitration of a franchisee’s claims, but found the North Carolina forum selection and choice of law provisions in the...more
A federal court in Pennsylvania recently granted battery supplier C&D Technologies, Inc.’s motion to dismiss counterclaims brought by its former distributor Elliott Auto Supply Co, Inc. d/b/a Factor Motor Parts’ (FMP). C&D...more
A federal court in Michigan recently granted Domino’s motion to compel arbitration of a collective action relating to wage claims but denied Domino’s motion for sanctions and motion to dismiss, instead staying the case...more
A federal court in Virginia recently granted a motion brought by equipment suppliers DET Diesel Emission Technologies, LLC and Synergy Catalyst, LLC, together doing business as “Recore,” to enforce a forum selection clause...more
A federal court in Washington recently granted a motion brought by franchisor Nurse Next Door Home Healthcare Services, Inc. (NND) to compel arbitration of a Florida-based franchisee’s claims. Nurse Next Door Home Healthcare...more
The Michigan Court of Appeals recently affirmed a trial court’s dismissal of certain claims by franchisees Red Fit, LLC and Cali Red, LLC against franchisor Red Effect International Franchise, LLC based on a release of...more
7/5/2024
/ Arbitration ,
Contract Termination ,
Development Agreements ,
Dismissals ,
Franchisee ,
Franchises ,
Franchisors ,
Proof of Damages ,
Release of Liability ,
Royalties ,
Witnesses
A federal court in Illinois recently denied cross motions for partial summary judgment as to franchisor 360 Painting, LLC’s claims for breach of contract by painting franchisee R. Sterling Enterprises, Inc. (RSE), and breach...more
A New Jersey appellate court, reversing a summary judgment decision, recently held that the New Jersey Coalition of Automotive Retailers, Inc. (the Coalition) had associational standing to bring an action against Ford Motor...more
A federal court in Illinois recently dismissed a former franchisee’s counterclaims for alleged fraudulent misrepresentation, breach of contract regarding the franchisor’s advertising fund, and breach of contract and implied...more
3/15/2024
/ Advertising ,
Breach of Contract ,
Counterclaims ,
Dismissals ,
Federal Loans ,
Franchisee ,
Franchises ,
Franchisors ,
Fraud ,
Misrepresentation ,
SBA Lending Programs
A federal court in Florida recently granted in part and denied in part a former franchisee’s motion to dismiss claims for breaching a post-termination noncompete agreement, trademark infringement, and unfair competition. CHHJ...more
A federal court in Maryland recently granted a motion for class certification by consumers who brought negligence, breach of contract, and consumer protection claims against hotel franchisor Marriott International and data...more
1/19/2024
/ Breach of Contract ,
Choice-of-Law ,
Class Action ,
Class Certification ,
Data Breach ,
Federal Rules of Civil Procedure ,
Franchisors ,
Hotels ,
Marriott ,
Multidistrict Litigation ,
Negligence ,
Venue ,
Waivers
The Seventh Circuit Court of Appeals affirmed an Indiana court's order dismissing a claim by inventor Thomas Russell that his exclusive distributor, Zimmer, Inc., failed to use commercially reasonable efforts to sell...more
A federal court in New Jersey recently declined to issue an order invalidating the class action waiver and arbitration provision used by franchisor The UPS Store, Inc. and certain TUPSS franchisees’ (collectively, TUPSS) and...more
The Fifth Circuit Court of Appeals recently affirmed the enforcement of a jury trial waiver against a franchisee. Pizza Hut L.L.C. v. Pandya, 79 F.4th 535 (5th Cir. Aug. 22, 2023). Pizza Hut originally filed suit against...more
A federal court in Michigan granted Little Caesar Pizza Enterprises, Inc.’s motion for summary judgment seeking to enforce its termination of the franchise agreements between it and franchisee S&S Pizza Enterprises, Inc....more
The Fifth Circuit Court of Appeals affirmed a Texas federal court’s (i) dismissal of a distributor’s fraud claims against an automobile-product manufacturer and (ii) grant of summary judgment in favor of the manufacturer on...more
A federal court in Tennessee recently compelled arbitration for parties in a franchise disclosure dispute. B&P Glass Mirror, LLC v. Clozetivity Franchising, LLC, 2023 WL 3484205 (M.D. Tenn. May 16, 2023). Plaintiff B&P...more
A federal court in Tennessee granted franchisor Frost Shades’ motion to compel arbitration of franchisee Lunt’s fraudulent inducement of contract claims, but the court also granted in part franchisee Lunt’s request for a...more
6/13/2023
/ Arbitration ,
Contract Terms ,
Federal Arbitration Act ,
Franchise Agreements ,
Franchisee ,
Franchises ,
Franchisors ,
Fraudulent Inducement ,
Motion to Compel ,
Non-Compete Agreements ,
Preliminary Injunctions
Reflecting a shifting national landscape on restrictive covenants, the Minnesota Legislature recently adopted legislation that prohibits franchisors from placing certain nonsolicitation and no-poach restrictions in franchise...more
Join Lathrop GPM attorneys Rachel O’Connor and Carlos White for a discussion on the benefits, challenges, and strategies for developing and implementing ESG standards into a franchise system....more
A federal court in Oklahoma granted franchisor Pizza Inn, Inc.’s motion for preliminary injunction preventing two former Pizza Inn franchisees – Odetallah and Allen’s Dynamic Food – from operating competing pizza restaurants...more
A federal court in Tennessee denied a manufacturer’s motion to dismiss claims that it acted in bad faith and constructively terminated a dealership when it denied the dealer’s proposed relocation sites. Hyundai Subaru of...more
A federal court in Virginia recently enforced an alleged “scrivener’s error” that extended the term of a development agreement for one developer, while enforcing notice requirements to uphold a nonrenewal for another...more
A federal court in New York has denied a franchisor’s motion for preliminary injunction aimed at preventing a former franchisee from operating a competing business in the same location as its former franchised business...more