A California federal court denied a motion to dismiss a former franchisee’s complaint against a healthcare recruitment franchisor’s Chief Executive Officer....more
A federal court in Missouri granted franchisor’s motion for preliminary injunction against its former franchisee, enjoining the former franchisee from operating a competing business from the former franchised location....more
6/30/2025
/ Breach of Contract ,
Business Operations ,
Confidential Information ,
Franchise Agreements ,
Franchise Termination ,
Franchisee ,
Franchisors ,
Irreparable Harm ,
Misappropriation ,
Non-Compete Agreements ,
Preliminary Injunctions ,
Proprietary Information ,
Trade Secrets ,
Trademarks
The Texas Supreme Court reversed a lower court’s decision against a franchisor based on a theory of negligence after a customer was assaulted by an employee of the franchisee. The court concluded that franchisor did not owe a...more
6/27/2025
/ Assault ,
Duty of Care ,
Employee Misconduct ,
Employer Liability Issues ,
Franchise Agreements ,
Franchisee ,
Franchisors ,
Hiring & Firing ,
Independent Contractors ,
Negligence ,
Reversal ,
Right to Control ,
TX Supreme Court
A New York federal court denied a franchisor’s motion to dismiss a franchisee’s complaint for misrepresentations and improper financial performance representations which allegedly induced the franchisee to enter into multiple...more
An Ohio federal court granted a franchisor’s motion to dismiss a putative class of franchisees alleging antitrust violations and related claims, including interference to deflate franchisees’ reimbursement rates. Other class...more
5/29/2025
/ Antitrust Violations ,
Breach of Contract ,
Dismissals ,
Franchise Agreements ,
Franchisee ,
Franchisors ,
Interference Claims ,
Misrepresentation ,
Negligence ,
Putative Class Actions ,
Statute of Limitations ,
Time-Barred Claims ,
Vendors
A California federal court denied a franchisor’s motion to dismiss a franchisee’s complaint claiming the franchisee failed to first mediate the dispute before filing an action as required under the franchise agreement....more
A federal district court in Tennessee granted a motion for a default judgment in the franchisor’s favor against its former franchisee requiring the franchisee to pay damages and comply with the post-termination obligations...more
4/1/2025
/ Arbitration ,
Contract Termination ,
Damages ,
Default Judgment ,
Franchise Agreements ,
Franchise Termination ,
Franchisee ,
Franchisors ,
Non-Compete Agreements ,
Permanent Injunctions ,
Trademark Infringement
An employee of a Domino’s Pizza franchisee, returning from a pizza delivery, collided with a motorcyclist who suffered serious injuries. After a Pennsylvania jury found Domino’s (as franchisor) vicariously liable for the...more
A district court in Arizona granted a franchisor’s motion to transfer venue to Missouri pursuant to the terms of the franchise agreement.
S&G Elite LLC (“S&G”) and ST National Franchising, LLC (“Franchisor”) entered into a...more
Last May, the Federal Trade Commission looked to ban non-compete agreements in most employment contracts aside from franchise agreements. Although scheduled to become effective in September, a federal court vacated the ruling...more
2/13/2025
/ Appeals ,
Competition ,
Employment Contract ,
Federal Trade Commission (FTC) ,
Franchise Agreements ,
Franchisee ,
Franchises ,
Franchisors ,
NASAA ,
New Guidance ,
Non-Compete Agreements ,
Trade Secrets
A California federal court partially granted a motion to compel arbitration by car care franchisor Spiffy Franchising. However, the court invalidated provisions in the franchise agreement providing for dispute resolution in...more
1/31/2025
/ Addendums ,
Arbitration ,
Arbitration Agreements ,
Choice-of-Law ,
Dispute Resolution ,
Forum Selection ,
Franchise Agreements ,
Franchisee ,
Franchisors ,
Motion to Compel ,
Notice of Intent
A Mississippi federal court granted summary judgment in favor of Leisure Systems, Inc. (“LSI”), a franchisor of Yogi Bear themed children’s parks and campgrounds, on negligence and premises liability claims. The case was...more
The Los Angeles wildfires pose significant challenges for businesses, including franchised businesses. But if a business is lost in a national disaster, support already exists within a franchise system. It’s organic. That is...more
A New Jersey federal district court granted summary judgment in favor of 7-Eleven, Inc. in a dispute with a franchisee.
The franchisee signed a franchise agreement to operate a 7-Eleven store in Princeton, New Jersey,...more
A California federal court granted summary judgment in favor of Red Roof Inns, a hotel franchisor, on sex trafficking claims brought under the Trafficking Victims Protection Reauthorization Act, or TVPRA....more
A Washington federal court denied a franchisor’s motion to dismiss for lack of personal jurisdiction, finding the court had personal jurisdiction over a franchisor’s agents who reside in Louisiana, based on their purposeful...more
A Colorado federal court denied a franchisor’s request for preliminary injunction that would enforce a non-compete provision against a former franchisee.
The franchisor of spice and tea shops known as Spice & Tea Merchants...more
A New Jersey federal court granted in part a hotel franchisor’s motion for summary judgment against its franchisee and the guarantor of the personal guaranty, for breach of the parties’ franchise agreement. The franchisee did...more
A California federal court granted a motion to compel arbitration by retail franchisor Batteries Plus and its two executives, and dismissed a franchisee’s action alleging violations of the California Franchise Investment Law,...more
A federal district court in New Jersey recently found that restaurant franchisor Golden Corral was entitled to nearly $1.2 million in consequential damages after terminating a franchised Golden Corral restaurant....more
A federal district court in Texas denied a preliminary injunction filed by a franchisee (“EYM”) after Pizza Hut, as franchisor, terminated the franchise agreements....more
7/1/2024
/ Breach of Contract ,
Breach of Duty ,
Failure to Comply ,
Fiduciary Duty ,
Forbearance Agreements ,
Franchise Agreements ,
Franchise Termination ,
Franchisee ,
Franchisors ,
Notice of Default ,
Preliminary Injunctions ,
Tortious Interference
A trial judge for the United States Bankruptcy Court in Illinois denied a franchisee’s motion to enforce an automatic stay against The UPS Store (“TUPSS”), concluding that TUPSS’ termination of the franchise agreement was...more
A Florida district court granted a motion to stay court proceedings pending arbitration between a franchisor and a third-party, non-signatory to a franchise agreement, containing an arbitration clause....more
An Illinois federal district court granted partial summary judgment in a trademark dispute against Ledo Pizza System, Inc. (“System”) and Ledo Pizza Carryouts, Ltd. (“Carryouts”), a franchisor of pizza restaurants...more
A Maryland federal district court denied a restaurant franchisor’s motion to dismiss, concluding that a restaurant manager at a franchised location alleged sufficient facts to support a finding that the franchisor is a joint...more