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Before committing to a franchise business, consider...
A federal court in Ohio dismissed a putative class action brought by franchisee-eyewear sellers against their franchisor, Luxottica of America. Brave Optical, Inc. v. Luxottica of Am. Inc., 2025 WL 962827 (S.D. Ohio Mar. 31,...more
A federal court in California recently dismissed a putative class action by two Dunkin’ customers alleging customers were illegally charged a “dine-in fee, or other hidden fee.” Taferner v. Inspire Brands, Inc., 2025 WL...more
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
In June 2021, the Supreme Court reaffirmed in NCAA v. Alston that antitrust claims under Section 1 of the Sherman Act “presumptively” call for rule-of-reason analysis and that only the rare case merits “quick look” or per se...more
Patel v. 7-Eleven, a case in Massachusetts, has been closely watched since the ABC test took hold of franchise relationships in employee misclassification cases across the country. A putative class of 7-Eleven franchisees...more
Welcome to The Franchise Memorandum by Lathrop GPM. Below are summaries of recent legal developments of interest to franchisors. Fraud/Misrepresentation - Minnesota Federal Court Rules that Fraud and Misrepresentation...more
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
On May 17, 2019, Judge Renee Marie Bumb of the United States District Court for the District of New Jersey rejected the parties’ request to dismiss a Fair Labor Standards Act (“FLSA”) lawsuit without the Judge’s review of the...more
A recent decision by a Connecticut district court reiterates that the issue of consent may foreclose class certification in Telephone Consumer Protection Act (TCPA) junk fax cases....more
LEGISLATION, REGULATIONS & STANDARDS - INTERIOR DEPT. TO ALLOW GMO CULTIVATION ON NATIONAL LANDS - The U.S. Department of the Interior has reportedly withdrawn a 2014 memorandum prohibiting the cultivation of genetically...more
LEGISLATION, REGULATIONS & STANDARDS - FDA Commissioner Questions Milk Standards Enforcement - At a speaking engagement, U.S. Food and Drug Administration (FDA) Commissioner Scott Gottlieb reportedly expressed that the...more
USDA Withdraws Organic Livestock and Poultry Rule - The U.S. Department of Agriculture (USDA) has issued a final rule withdrawing the Organic Livestock and Poultry Practices Rule, leaving existing organic regulations in...more
Parties Settle Kombucha False Advertising Action - Retta, et al. v. Millennium Products, Inc., No. 2:15-cv-01801 (C.D. Cal.): The Ninth Circuit entered an order granting Objector-Appellant’s motion for voluntary dismissal...more
House Panel Questions FDA Officials on Food-Recall Audit - One day after the U.S. Food and Drug Administration (FDA) issued draft guidance on proposals to expedite product warnings and recalls, FDA and other health officials...more
Chicago Repeals SSB Tax After Two Months of Enforcement - Chicago officials have voted to repeal a sugar-sweetened beverage (SSB) tax approved in November 2016 by the Cook County Board of Commissioners but delayed by a...more
The Eleventh Circuit Court of Appeal found that an arbitration agreement entered into by a putative class representative and his eventual employer was enforceable even though the agreement was signed after the plaintiff filed...more
Jimmy John’s can’t seem to escape the limelight. Last year, the company made headlines when employees hit it with a putative class action lawsuit seeking to invalidate their non-compete agreements. The District Court...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
McDonald’s, the fast food giant known for supersizing its orders, avoided conditional certification of an FLSA collective action this week based on the “very large” size of the putative class. The Eastern District of Michigan...more