News & Analysis as of

Employment Litigation Franchises

Zelle  LLP

Burger King Employees Persist After Renewed Motion to Dismiss

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Last month, Judge Jose E. Martinez of the U.S. District Court for the Southern District of Florida denied the Burger King Defendants’ (“Burger King”) motion to dismiss a putative class action alleging that its “No-Hire”...more

Foley & Lardner LLP

Court Holds Franchisor Could Be Liable for Workplace Abuse Experienced by Franchisee’s Employee

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A federal court recently denied a franchisor’s motion to dismiss a workplace-abuse lawsuit filed by its franchisee’s employee because the employee stated a claim upon which relief could be granted under Federal Rule of Civil...more

Bilzin Sumberg

District Court Denies Burger King’s Motion to Dismiss Putative Class Action Related to No-Poaching Provisions in Franchise...

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Arrington v. Burger King Worldwide, Inc., No. 1:18-cv-24128 (S.D. Fla. Oct. 5, 2018) – In October 2018, Jarvis Arrington, a former employee at a Burger King franchisee in Illinois, filed a class action complaint against...more

Lathrop GPM

Supreme Court of Texas Holds Franchisor Lacked Control Over Franchisee Sufficient to Create Duty of Care to Customer that Alleged...

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The Supreme Court of Texas recently ruled that franchisor Massage Heights did not owe a duty of care to a massage customer who alleged a sexual assault, because, among other reasons, Massage Heights had neither the...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

Lathrop GPM

Virginia Federal Court Dismisses Franchise Employee’s Discrimination Claims Against McDonald’s

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A federal court in Virginia recently granted McDonald’s USA, LLC’s motion to dismiss a former franchise employee’s Title VII and Virginia Human Rights Act claims. Edmonds v. McDonald’s USA, LLC, 2025 WL 1066193 (W.D. Va. Apr....more

Lathrop GPM

Massachusetts Federal Court Grants Preliminary Injunction for Noncompete Violations, Denies Injunction for Trademark Infringement

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A federal court in Massachusetts recently granted, in part, a Motion for Preliminary Injunction as to enforcement of franchise agreement noncompete covenants but denied the motion as to claims of trademark infringement,...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

North Dakota Federal Court Denies Subway’s Motion to Dismiss Franchisee Employee’s Vicarious Liability Sex Trafficking Claims

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A federal court in North Dakota recently denied a motion to dismiss vicarious liability claims against the corporate entities constituting the Subway franchise system. C.S. v. Subway Worldwide, Inc., 2025 WL 472475 (D.N.D....more

Parker Poe Adams & Bernstein LLP

Fifth Circuit Declines Reconsideration of FLSA Salary Rule Decision

Last year in a rare victory for the Department of Labor, the Fifth Circuit Court of Appeals rejected a claim by a Dairy Queen franchisee that the Fair Labor Standards Act prohibits DOL from establishing any minimum salary for...more

Blake, Cassels & Graydon LLP

Class Dismissed: B.C. Court of Appeal Affirms Summary Judgment Decision Dismissing Proposed Class Action

On February 13, 2025, the B.C. Court of Appeal dismissed an appeal from summary judgment in Latifi v. The TDL Group Corp., confirming that a claim for conspiracy to injure will fail where the predominant purpose of an...more

Foley & Lardner LLP

Navigating Joint Employment: A Renewed Push to Implement a More Employer-Friendly Standard

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With a Republican-controlled Congress and White House, business lobbyists are seizing the opportunity to push for permanent clarity on the issue of joint employment. The International Franchise Association (IFA) is advocating...more

Lathrop GPM

Massachusetts Supreme Judicial Court Rules that Franchisees Did Not Perform Services for Franchisor Within the Meaning of the...

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The Massachusetts Supreme Judicial Court answered “no” to a certified question from the First Circuit Court of Appeals asking whether plaintiff franchisees “‘perform any service’ for 7-Eleven within the meaning of [the...more

Seyfarth Shaw LLP

The Massachusetts Supreme Judicial Court Upholds 7-Eleven Franchise System in Denying Franchisees’ Challenge to Their Independent...

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On September 5, 2024, the Massachusetts Supreme Judicial Court (“SJC”) answered a second certified question in Patel, et al. v. 7-Eleven, Inc., et al. (“Patel II”), a long-running case where 7-Eleven franchisees claimed they...more

Lathrop GPM

Eleventh Circuit Affirms in Part, Reverses in Part, District Court Determination to Blue Pencil and Enforce Noncompete Agreement

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The Eleventh Circuit Court of Appeals recently affirmed in part, and vacated in part, a district court’s issuance of an injunction preventing a franchisor’s enforcement of a noncompete covenant as written but allowing...more

Lathrop GPM

First Circuit Certifies Second Employee Misclassification Question to Massachusetts Supreme Court in Ongoing 7-Eleven Case

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The First Circuit Court of Appeals recently certified to the Massachusetts Supreme Court the question of whether franchisee plaintiffs in an ongoing case pass the threshold inquiry under the state’s three-prong employee...more

Lathrop GPM

Maine Federal Court Grants Franchisor’s Motion to Dismiss Age Discrimination Claim Brought by Franchisee’s Independent Contractor

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A federal court in Maine granted a franchisor’s motion to dismiss claims asserting that a franchisor was liable for its franchisee’s alleged age discrimination in employment. Goodwill v. Anywhere Real Est., 2023 WL 4034372...more

Lathrop GPM

Ninth Circuit Affirms Decision that Franchisees Are Not Employees of Franchisor

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The Ninth Circuit Court of Appeals recently affirmed a decision that a group of franchisees are not employees of their franchisor, even though the trial court failed to apply the correct test. Haitayan v. 7-Eleven, Inc., 2022...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Eleventh Circuit Serves a Whopper of a Ruling on Franchisor’s ‘No-Poach’/‘No-Hire’ Agreement With Franchisees

​​​​​​​Over the last several years, business-to-business “no-hire” and “no-poach” agreements have come under legal attack, including through enforcement actions by the Federal Trade Commission and criminal prosecutions by the...more

Littler

Massachusetts Top Court Issues Key Ruling Impacting Independent Contractors

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On March 24, 2022, the Massachusetts Supreme Judicial Court (SJC) handed down a key ruling that could have a significant impact on franchising across the state. In Patel v. 7-Eleven, Inc., the SJC was asked whether the...more

Fisher Phillips

Massachusetts Franchise Owner-Operators May Be Employees of Franchisors

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The Massachusetts Supreme Judicial Court just held that 7-Eleven franchisees may be employees of 7-Eleven under Massachusetts wage and hour law. The March 24 decision in Dhananjay Patel v. 7-Eleven, Inc. will have significant...more

Snell & Wilmer

The NLRB Just Made It Harder To Lasso Franchisors And Affiliated Businesses For The Alleged Sins Of Their Compatriots

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In 2015, the NLRB adopted a more relaxed standard for determining when an entity could be considered a joint employer and thus liable for alleged workplace wrongs along with a direct employer. Of course the result of the...more

Best Best & Krieger LLP

Doing Business in 2020: Courts Tackle Employment Law

Part 2: New Employment-Related Court Decisions Impacting California’s Public and Private Entities - California and federal courts handed down a number of labor and employment-related decisions last year, impacting...more

Seyfarth Shaw LLP

5 Key Trends For Workplace Class Action Litigation For 2019: Trend #3 Governmental Enforcement Litigation Trends In 2019

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Seyfarth Synopsis: The third key trend from our 16th Annual Workplace Class Action Litigation Report involves governmental enforcement litigation, including an overview of priorities and filings by the EEOC, the U.S....more

Robins Kaplan LLP

Financial Daily Dose 1.8.2020 | Top Story: Speaker Company Sonos Sues Google for Patent Infringement

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Home speaker maker Sonos has sued Google, accusing the company of “infringing on five of its patents, including technology that lets wireless speakers connect and synchronize with one another.” Sonos had originally partnered...more

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