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Before committing to a franchise business, consider...
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
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
A federal court recently denied a dealer’s request for preliminary injunction to halt the termination of a dealership agreement with a manufacturer of liquor control systems. The dealer’s acts and omissions during the...more
A federal court recently granted in part and denied in part a franchisor’s motion to enjoin the post-termination activities of its former franchisees and two related entities. Rooterman, LLC is a plumbing services franchisor....more
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
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
There were a number of important and potentially impactful developments in 2024 that we predict will continuing developing and trending in 2025. Some of these topics are also discussed in other articles in this annual update....more
Recently, the North American Securities Administrators Association, Inc.’s (“NASAA”) Franchise and Business Opportunities Project Group (“FPG”) issued guidance on post-term non-compete clauses in the context of the franchise...more
While 2024 saw more stability in the financial markets than 2023, many challenges arose in 2024 for franchised businesses, manufacturers and retail chains, including bankruptcies of many large restaurant and retail chains,...more
In May of last year, the Federal Trade Commission (FTC) sought to ban non-compete agreements in most employment contracts. Franchise agreements were an exception. However, before the rule could take effect in September, a...more
Last year saw non-compete agreements come under repeated scrutiny from the Federal Trade Commission. On April 23, 2024, the FTC issued a final rule banning non-compete agreements in most employment contracts....more
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
While the original guidelines focused primarily on per se illegal wage-fixing and no-poach agreements, the 2025 Guidelines illustrate a significant expansion in enforcement, broadening scrutiny to compensation benchmarking,...more
The Department of Justice Antitrust Division (DOJ) and the Federal Trade Commission (FTC) (together, the Agencies) issued Antitrust Guidelines for Business Activities Affecting Workers (2025 Guidelines) in January. The 2025...more
In the final days of the Biden administration, the FTC and DOJ jointly issued antitrust guidelines on business practices that impact workers that replace the 2016 Antitrust Guidance for Human Resource Professionals, which...more
Less than a week before the inauguration of President Donald Trump, the Federal Trade Commission (FTC) and U.S. Department of Justice’s (DOJ) Antitrust Division jointly published guidelines on assessing whether business...more
On January 16, 2025, in the waning hours of the Biden-Harris administration, the Department of Justice (DOJ) and Federal Trade Commission (FTC) jointly released their “Antitrust Guidelines for Business Activities Affecting...more
In the final days of the Biden administration and on the eve of significant agency turnover, the US Department of Justice Antitrust Division (DOJ) and Federal Trade Commission (FTC) issued a new set of guidelines addressing...more
During their last week in office, and over the vigorous dissent of Republican FTC commissioners, Biden administration antitrust officials unveil new guidelines intended to replace the 2016 Antitrust Guidance for Human...more
A federal court in Minnesota recently granted franchisor Snap Fitness Inc.’s motion for preliminary injunction against an out-of-state franchisee that announced its intentions to open a competing gym during the term of the...more
The California Court of Appeals upheld a decision finding that a Texas court had personal jurisdiction over California franchisees. GlobalCFO LLC v. Venkataramanappa, 2024 WL 4220439 (Cal. Ct. App. Sept. 18, 2024)....more
A federal court in Michigan has granted a franchisor’s motion for preliminary injunction against former franchisees for violating the franchise agreements’ post-termination noncompete provisions. 1-800 Water Damage Int’l LLC...more
A federal court in Michigan recently granted several related franchisors’ motions to dismiss a franchisee’s claims for violations of the Michigan Franchise Investment law. Benjamin Franklin Franchising SPE LLC v. David...more
A state trial court in Minnesota granted Renters Warehouse USA, LLC’s motion for a temporary injunction, and enjoined Life Property Managers, LLC (LPM) from violating its post-termination obligations and a covenant not to...more
When the Federal Trade Commission (FTC) issued its long-awaited final rule banning virtually all noncompete clauses between workers and employers, it also published 500-plus pages of commentary....more