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Choice-of-Law Franchise Agreements

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

Foley & Lardner LLP

Franchise Agreement Requiring Out of State Mediation Is Unenforceable in California Background

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Dispute resolution provisions in franchise agreements often address how, when, and where parties will mediate. However, the enforceability of these provisions can change depending on the law of the state governing the...more

Lewitt Hackman

Franchisor 101: Mowing and Blowing Past Mediation

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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

Foley & Lardner LLP

Permissive Forum Selection Clause Is Not Enforceable in Franchisor’s Suit Against Franchisee

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A key term of any franchise agreement is the venue selection clause as this page has previously explained. This issue was at the forefront of Convenience Stores Leasing & Management, LLC’s (“CSLM”) August 2024 suit...more

Lathrop GPM

Wisconsin Federal Court Transfers Venue to Indiana Notwithstanding Forum Selection Clause

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A federal court in Wisconsin recently transferred a franchisor’s breach of contract lawsuit to Indiana, the location of the franchisee, even though the parties’ supply agreement contained a Wisconsin forum selection clause....more

Lathrop GPM

California Federal Court Grants Remediation Franchisor’s Motion to Stay Proceedings

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A federal court in California recently granted Ringside Development Company’s motion to stay a franchisee-initiated lawsuit pending resolution through alternative dispute resolution. Jameson v. Ringside Development Company,...more

Lewitt Hackman

Franchisee 101: Detailing Within a State Addendum

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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

Lewitt Hackman

Franchisor 101: Not at Liberty to Change Venue

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A Dallas-based federal district court denied a franchisor’s request to keep its action against former franchisees in Texas and transferred the action to the Eastern District of Virginia....more

Lathrop GPM

Tennessee Federal Court Compels Arbitration in Fraudulent Inducement Dispute

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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

Foley & Lardner LLP

Federal Court Deals with Personal Jurisdiction and Choice of Law Issues

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In Luxury Concepts, Inc. v. Bateel International, LLC, a franchisee, Luxury Concepts, Inc. (LCI), sued a retail outlet and e-commerce franchisor, Bateel International LLC (Bateel), as well as multiple Bateel directors in...more

Akin Gump Strauss Hauer & Feld LLP

Fourth (and Final?) Act in the Kabab-Ji Saga—What Law Governs the Arbitration Agreement (Law of the Seat or Law of the Underlying...

On 28 September 2022, the French Cour de cassation upheld the French Court of Appeal’s decision in Kabab-Ji SAL v. Kout Food Group that the law of the seat, rather than the law governing the underlying contract, governed...more

WilmerHale

Kabab-Ji SAL (Lebanon) v Kout Food Group (Kuwait) [2021] UKSC 48: UK Supreme Court clarifies approach to determining whether there...

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In an important recent decision, the U.K. Supreme Court provided further guidance on how to determine the law that applies to an international arbitration agreement. In its unanimous decision in Kabab-Ji SAL v Kout Food...more

Lathrop GPM

The Franchise Memorandum - Issue # 268 (Distribution Issue)

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Welcome to The Franchise Memorandum by Lathrop GPM. Periodically, The Franchise Memorandum focuses on topics primarily of interest to companies that use distributors and dealers rather than manage a business format franchise...more

Lewitt Hackman

Franchisor 101: Successor Franchisor’s Territorial Takeover

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A federal court in Connecticut ruled against an urgent care franchisor’s motion to dismiss, finding the plaintiff had standing to sue under Article III of the U.S. Constitution. The court still dismissed the plaintiff’s...more

Lathrop GPM

The Franchise Memorandum - Issue # 263

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Illinois Federal Court Excludes Plaintiffs’ Expert Testimony on Certification Motion in Anti-Poaching Class Action - A federal court in Illinois granted Jimmy John’s motion to exclude expert testimony of a putative class...more

Lathrop GPM

The Franchise Memorandum - Issue # 262

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California Supreme Court Applies Independent Contractor Standard Retroactively; Does Not Reach Applicability to Franchises - The California Supreme Court has held that its Dynamex decision applies retroactively, answering...more

Lewitt Hackman

Franchisee 101: A Franchisor Without Urgency

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A federal court in Alabama denied an urgent care franchisee’s motion to dismiss a suit brought by its franchisor. The franchisee argued the franchise agreement required suits to be brought within a one-year period. But the...more

Akin Gump Strauss Hauer & Feld LLP

The Law of an Arbitration Agreement: Is it the law of the seat or the law of the underlying contract?

If there is no express law of the arbitration agreement, the law with which that agreement has its closest and most real connection is either the law of the underlying contract or the law of the seat of the arbitration. The...more

Lathrop GPM

The Franchise Memorandum - Issue 249

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Welcome to The Franchise Memorandum by Lathrop GPM, formerly known as The GPMemorandum. Since December 1997, The GPMemorandum has been presenting summaries of recent legal developments of interest to franchisors and companies...more

Lewitt Hackman

Franchisor 101: Forum Selection Clause Gone Wrong

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A California Court of Appeal held that courts should not enforce forum selection clauses in contracts that also contain a jury waiver. For franchisors that have California franchisees, this ruling could complicate the ability...more

Fox Rothschild LLP

Did You Hear? Watch Out For Ohio’s BOPPA!

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A recent decision in the United States District Court of Arizona (“Court”) could have far-reaching consequences to many franchisors based on the broad-sweeping principles the Court used in its reasoning. In Zounds Hearing...more

Lewitt Hackman

FRANCHISOR 101: Venue and Choice of Law Provisions Not Enforceable in California

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In 2013, Pepe's Franchising, a U.K. company, entered into a Master Franchise Agreement with Frango Grill, based in California, granting the right to operate and franchise Pepe's restaurants in California. The Agreement's...more

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