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Franchise Updates

Read need-to-know updates, commentary, and analysis on Franchise issues written by leading professionals.
Miles Mediation & Arbitration

Successful Mediation of Franchise Disputes: Factors That Influence the Outcome

Franchising as a legal relationship has embraced mediation as a pre-filing requirement to a lawsuit or arbitration in many franchise agreements. So, how has it gone? Originally published in the ABA’s The Franchise Lawyer -...more

Lewitt Hackman

Franchisee 101: Suggestive Termination

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An Arizona federal court dismissed a franchisee’s counterclaims for breach of contract, defamation, and injunctive relief against LeTip World Franchise, a professional networking franchisor....more

Lewitt Hackman

Franchisor 101: Hey, That’s My ADR Provision

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A California federal court stayed proceedings in favor of the franchisor and ordered the parties to undertake the dispute resolution procedures in the franchise agreement, holding that the parties clearly and unmistakably...more

Foley & Lardner LLP

Scion Hotels vs. Holiday Hospitality: Navigating NJFPA Claims in Franchise Disputes

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Scion Hotels LLC appealed a federal district court’s ruling regarding the non-renewal of a franchise agreement under the New Jersey Franchise Practices Act (NJFPA). The United States Court of Appeals for the Third Circuit’s...more

Kohrman Jackson & Krantz LLP

How Small Businesses Can Expand: Strategies for Sustainable Growth

Small businesses often begin with a single location, a small team and a loyal customer base. But once they’ve proven their concept and achieved consistent revenue, many owners start looking for ways to grow. Expansion,...more

Burr & Forman

Could Franchises Be the Ultimate Beneficiary of the Death of the Shopping Mall?

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As shopping malls across the country face closures due to shifting consumer habits and the rise of e-commerce, franchises are finding new opportunities in the wake of these closures. With declining rents, access to...more

Bradley Arant Boult Cummings LLP

Texas Court Exposes Key Gap in Professional Liability Coverage for Home Health Franchisors

In the home health care business? Whether a franchisor, franchisee, or independent agency, beware of bodily injury exclusions in professional liability policies that could eliminate coverage for otherwise covered claims....more

Fox Rothschild LLP

What Federal Save Local Business Legislation Could Mean for the Joint Employer Standard

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Legislation is moving through Congress that, if enacted, would establish a new joint employer standard and end some of the uncertainty businesses have faced the past several years whenever a new party won the White House. ...more

Offit Kurman

Understanding the FDD and Franchise Agreement Before You Invest

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Franchise Agreements are typically drafted by the franchisor and presented on a “take it or leave it” basis. These contracts often impose strict controls over how you operate your business — from approved vendors and...more

Polsinelli

Deadline Approaches for Comments on NASAA Proposed Model Franchise Broker Law

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Key Takeaways: The North American Securities Administrators Association (NASAA) has proposed a Model Franchise Broker Registration Act that would require franchise brokers and their representatives to register with...more

Goodwin

Hotel Financing Considerations: Franchises Versus Brand-Managed Properties

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Hotel owners have many considerations when choosing between a franchise agreement or a management agreement with a hotel brand, most crucially factors such as how much control and flexibility an owner wishes to maintain...more

Lewitt Hackman

Franchisee 101: Franchisee’s Milkshake Brings All Claims to the Yard

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A Texas federal court granted American Dairy Queen Corporation’s motion for partial summary judgment against a terminated franchisee, finding no dispute to the material facts establishing the franchisee’s material breach of...more

Lowndes

Franchise Riders in Retail Leases: What You Need to Know as a Landlord

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Understanding Franchise Riders: Purpose, Content, and Potential Conflicts - When a franchisee signs a retail commercial lease to operate a franchised business, the franchisor may require a Franchise Rider, a document that...more

Lewitt Hackman

Franchisor 101: A Franchise Nondisclosure Document

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A California federal court denied a motion to dismiss a former franchisee’s complaint against a healthcare recruitment franchisor’s Chief Executive Officer....more

Miller Nash LLP

Franchise Exemptions: Tool or Strategy?

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A company considering franchising may see exemptions as an ideal way to avoid burdensome registration and disclosure requirements and streamline their path to market. Indeed, exemptions reduce time, avoid the process of...more

Hinch Newman LLP

FTC Announces Another Action Against Alleged eCommerce Business Opportunity Violators

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In 2024, FTC compliance lawyer wrote about the first case where the Federal Trade Commission charged a gig work company for allegedly misleading consumers about the money they could make on the company’s platform and...more

Nelson Mullins Riley & Scarborough LLP

New Jersey Poised to Adopt Unique Warranty Time Multiplier: Latest Development In Statutory Warranty Reimbursement Requirements

New Jersey appears poised to adopt a unique “average retail labor time allowance” multiplier to the compensation OEMs must pay dealers for warranty service, after both houses of that state’s Legislature voted on June 30, 2025...more

Lathrop GPM

South Carolina Federal Court Vacates Partial Summary Judgment Citing Abusive Litigation

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A federal court in South Carolina recently sua sponte vacated its own grant of partial summary judgment due to the abusive nature of the ongoing litigation. YGM Franchise, LLC v. Wong, 2025 WL 1549606 (D.S.C. May 30, 2025)....more

Lathrop GPM

Missouri Federal Court Denies Franchisor’s Request for Temporary Restraining Order for Alleged Violation of Noncompete

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A federal court in Missouri recently denied franchisor Three Dog Bakery, LLC’s request for a temporary restraining order (TRO) against its former franchisee, J.L.E.T. Enterprises SWF, LLC, and its owners, Joseph and Lynette...more

Lathrop GPM

Missouri Federal Court Grants Franchisor’s Motion for Preliminary Injunction for Alleged Violation of Noncompete

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A federal court in Missouri recently granted a franchisor’s motion for a preliminary injunction, finding that the franchisee’s operation of a competing business demonstrated irreparable harm. Three Dog Bakery, LLC v. Crit,...more

Lathrop GPM

West Virginia Court of Appeals Enforces Release, Reverses Fraudulent Inducement Finding Against National Broker

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The West Virginia Intermediate Court of Appeals reversed a decision that a national broker franchisor, Ameriprise Financial, Inc., fraudulently induced a franchisee into buying the business of another Ameriprise franchisee,...more

Lathrop GPM

New Jersey Federal Court Enters Default Judgment for Hotel Franchisor, Requests More Substantiation Before Ruling on Damages

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A federal district court in New Jersey recently entered an unopposed default judgement for breach of contract against Mani Hotels, LLC and Mehulkumar Ahir arising from the early termination of a franchise agreement with Days...more

Winstead PC

Incorporating Flag Standards in Hotel Construction Agreements

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Constructing a hotel is a complex endeavor that requires meticulous planning and execution to meet the expectations of both the developer and the flag. One of the critical aspects of this process is ensuring that the...more

Lathrop GPM

New York Federal Court Denies Motions for Reconsideration in Franchise Agreement Dispute

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A federal court in New York recently denied Community Care Companions, Inc. and Interim Healthcare, Inc.’s motions for reconsideration of the court’s summary judgment rulings in an ongoing franchise dispute. Cmty. Care...more

Jenner & Block

Client Alert: Navigating the Hazards of US Litigation: Lessons from Recent Decisions Involving Korean Companies

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Notwithstanding recent political turmoil, Korean companies have been expanding into the United States at a fast clip, continuing a trend of investment beneficial to businesses in both countries. As Korean brands increasingly...more

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