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Appeals Franchise Agreements

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

Carlton Fields

Second Circuit Affirms Confirmation of Arbitration Award Involving Dispute About Foreign Restaurant Franchises

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The Second Circuit Court of Appeals has rejected a challenge to a confirmation of an arbitration award upholding the nonrenewal of a master franchise agreement for Subway restaurants....more

Foley & Lardner LLP

Texas Supreme Court Limits Franchisor Liability in Franchisee Sexual Assault Case

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On May 2, 2025, the Texas Supreme Court held that a franchisor owes no duty of care for injuries caused by a franchisee’s employee unless the franchisor retained or exercised control over the hiring of that employee....more

Foley & Lardner LLP

Keep Wining: Franchise Statute Opens Door to Protections for Missouri Wine Distributor

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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

Fox Rothschild LLP

Texas Supreme Court Reverses Liability Finding Against Franchisor

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A recent Texas Supreme Court decision fully overturned a jury’s finding that a franchisor was liable for the criminal actions of a franchisee’s employee. This decision underscores the importance of a franchisor having clearly...more

Polsinelli

Landmark Texas Supreme Court Case Finds No “Direct Liability” for Franchisor Arising Out of Franchisee Employee’s Actions

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On May 2, 2025, the Texas Supreme Court reversed a Texas Court of Appeals’ decision that had affirmed a jury’s verdict finding a franchisor directly liable to the customer of a franchisee for actions undertaken by the...more

Lewitt Hackman

Franchisor 101: Too Much Control can be Painful

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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

Blake, Cassels & Graydon LLP

Colombie-Britannique : la Cour d’appel confirme un jugement sommaire rejetant une demande d’action collective

Le 13 février 2025, la Cour d’appel de la Colombie-Britannique (la « CACB ») a rejeté une demande d’autorisation d’interjeter appel du jugement sommaire rendu dans l’affaire Latifi v. The TDL Group Corp., confirmant que des...more

Lathrop GPM

New Jersey Appellate Court Confirms Terminated Retailer Is Not in a Franchise Relationship with Manufacturer

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A New Jersey appellate court affirmed a state trial court’s ruling that a terminated retailer of custom outdoor kitchens was not in a franchise relationship with a manufacturer of outdoor grills and that the New Jersey...more

Lewitt Hackman

NASAA Guidance for Franchise Non-Competes

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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

Lewitt Hackman

Franchisee 101: Booked for Personal Jurisdiction

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The California Court of Appeals upheld a lower court’s decision finding that a Texas court had personal jurisdiction over a California franchisee. GlobalCFO, LLC and GlobalCFO Franchise, LLC (collectively, “GlobalCFO”),...more

Lathrop GPM

Tennessee Appellate Court Finds that Venue Clause in Franchise Agreement is Permissive and Not Mandatory

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The Tennessee Court of Appeals reversed a district court’s dismissal of a franchisee’s declaratory judgment claim, finding that the claim was properly brought in Tennessee.  Lakeway Real Estate2, LLC v. ERA Franchise Sys.,...more

Lathrop GPM

New Jersey Appellate Court Holds Automotive Retailers Association Has Associational Standing to Assert Claims Under New Jersey...

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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

Lathrop GPM

California Court of Appeals Affirms Rejection of Reverse Royalty Damages in a Breach of Contract Action by Franchisee

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An appellate court in California has affirmed a trial court’s rejection of more than $4 million in lost business profits, which appellant Glen Suh alleged in a breach of contract action against franchisor Boba Time, Inc. Suh...more

Lewitt Hackman

Franchisor 101: Franchisor Cannot Massage its Way Out of Vicarious Liability

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A Texas court of appeals affirmed judgment in favor of a plaintiff who claimed a franchisor was vicariously liable for a franchisee’s employee’s wrongful conduct....more

Walkers

Losing the faith? Implied term of good faith rejected in Jersey contract law

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There is no generally implied term of good faith in all Jersey law contracts, the Royal Court has held. In doing so, it has answered a question left open in earlier Jersey judgments – including by the Court of Appeal in the...more

Lathrop GPM

Eighth Circuit Rules a Franchisor Is Not Entitled to Compel Arbitration of its Own Claims After Receiving a Series of Unfavorable...

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The Eighth Circuit Court of Appeals has affirmed the denial of a motion to stay pending arbitration because the claims of the franchisor, Breadeaux’s Pisa, did not fall within the mandatory stay provision of the Federal...more

Foley & Lardner LLP

Court Looks at What a Franchise Is Under the Minnesota Franchise Act

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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

Lathrop GPM

New York Appellate Court Dismisses Royalties Claim Because of Franchisor’s Breach Under Preliminary Injunction

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A state appellate court in New York recently held a franchisor was not entitled to unpaid royalty fees because of its own breach of a franchise agreement reinstated by preliminary injunction. Integrity Real Estate Consultants...more

Lewitt Hackman

Franchisor 101: A Tasty Appeal

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The Eleventh Circuit Court of Appeals reversed a district court’s summary judgement order, granting a chocolate shop franchisor’s breach of contract and unfair competition claims. The appellate court concluded there were...more

Foley & Lardner LLP

Federal Appeals Court Rules on Franchisor’s Power to Impose Changes on Franchise System

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The Eleventh Circuit Court of Appeals recently issued an opinion concerning a dispute over a franchisor’s effort to mandate changes to a franchisee’s operations. The Court granted the franchisor a mixed result. The decision...more

Snell & Wilmer

A Deal is a Deal in Utah: Utah Court Enforces “Walk-Away” Settlement Despite Subsequent Disagreements On Terms

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In the construction arena, there is a constant dialogue between owners, builders, and designers about changes to original deal terms. It’s natural and expected. And sometimes those dialogues lead to disagreements, and...more

Foley & Lardner LLP

Sixth Circuit Holds Michigan Franchise Investment Law Voids Forum Selection Clause

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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

Lewitt Hackman

Franchisee 101: Great Lakes Forum Selection Dispute

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A federal appellate court declined to enforce a choice-of-forum clause finding enforcement would conflict with Michigan’s Franchise Investment Law (“MFIL”). Lakeside Surfaces, Inc., a maker of stone countertops, sued...more

Lewitt Hackman

Franchisor 101: Court Delivers for Pizza Franchisor

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A Texas appeals court affirmed a lower court judgment in favor of Pizza Hut and its franchisee for claims of an alleged sexual assault by a delivery driver. The appellate court held Pizza Hut was not liable for the...more

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