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Before committing to a franchise business, consider...
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
A federal court in California recently granted a franchisor’s motion to compel arbitration and stay the lawsuit in a dispute alleging breach of contract, breach of the implied covenant of good faith and fair dealing, and...more
Welcome to the fifth edition of The Leisure Law Insider! Released quarterly, we cover the latest news and developments in leisure and hospitality law, regulation, and policy. Expect content on hotels, franchising, labor and...more
In Subway Franchise Systems of Canada ULC v. Subway Developments 2000 Inc., the U.S. District Court for the Southern District of New York addressed whether an arbitrator exceeded her authority when ordering that one of the...more
Washington-state based franchisees Greg and Gabriela Skistimas brought suit against Hotworx Franchising LLC in the U.S. District Court for the Western District of Washington alleging misleading and unfair practices related to...more
A federal court in Michigan recently granted a motion to dismiss for lack of personal jurisdiction against one owner of a franchisor, while denying the motion to dismiss against the other owner and granting the franchisor’s...more
A federal court in Washington recently granted a motion brought by franchisor Nurse Next Door Home Healthcare Services, Inc. (NND) to compel arbitration of a Florida-based franchisee’s claims. Nurse Next Door Home Healthcare...more
A federal court in New York recently ruled that an interim arbitration order was final and granted a developer’s petition to confirm the order which required the franchisor to make payments to the developer while the...more
A federal court in California recently granted a motion brought by a franchisor and two of its employees to compel arbitration and dismiss an action alleging violations of the California Franchise Investment Law, breach of...more
A recent case decided by the Ohio Court of Appeals reminds new franchisors to tread carefully when converting existing licensees to future franchisees. In the case of Okolish v. Town Money Saver, Inc., a coupon clipper...more
A federal court in North Carolina has held that considerations of judicial economy required that litigation of nonarbitrable claims should be stayed pending completion of a related arbitration. Medical Search Consultants, LLC...more
A federal court in Tennessee recently granted a franchisor’s motion to compel arbitration, including as to questions of arbitrability, in response to a 15 count complaint brought by 54 separate franchisees. Anthony v. Van...more
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
A federal court in Tennessee granted franchisor Frost Shades’ motion to compel arbitration of franchisee Lunt’s fraudulent inducement of contract claims, but the court also granted in part franchisee Lunt’s request for a...more
In a case involving an unorthodox procedural posture, a federal court in Oregon determined that nonsignatory franchisee owners are not subject to a franchise agreement arbitration provision. Goergen v. Black Rock Coffee B.,...more
A federal court in New Jersey has denied a motion to compel arbitration in a dispute over alleged breach of a franchise agreement. Passion for Restaurants, Inc. v. Villa Pizza, LLC, 2022 WL 18024209 (D.N.J. Dec. 30, 2022)....more
Ninth Circuit Reverses Class Action Settlement Approval and Fee Award - The Ninth Circuit Court of Appeals has reversed the approval of a $10 million voucher settlement and a $2.6 million attorneys’ fee award in a class...more
Two Illinois Federal Courts Deny Class Certification in Anti-Poaching Class Actions Against Franchisors - Two federal courts in Illinois have rejected motions to certify classes of employees who worked in franchised...more
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
Welcome to The Franchise Memorandum by Lathrop GPM, formerly known as The GPMemorandum. Below are summaries of recent legal developments of interest to franchisors. Given the widespread and evolving impact of the COVID-19...more
Many franchisors employ arbitration as its preferred method of dispute resolution. Generally, courts view arbitration agreements favorably. An agreement to arbitrate waives the fundamental right to have a court decide the...more
Goodwin Procter’s Business Litigation Reporter provides timely summaries of key cases and other developments within dedicated Business Litigation sessions and related courts throughout the country – courts within which...more
In a putative class action alleging violation of Pennsylvania labor laws, unfair trade practices, and other state law claims brought by a franchisee against the franchisor and two subsidiaries, the court stayed the...more
In 2010, Steak 'n Shake, a franchisor of hamburger restaurants, adopted new pricing and promotion policies that required all franchisees to follow company mandated pricing on every menu item and to participate in all...more