News & Analysis as of

Franchisors Breach of Contract Trademarks

Lathrop GPM

Missouri Federal Court Grants Franchisor’s Motion for Preliminary Injunction for Alleged Violation of Noncompete

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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

Lewitt Hackman

Franchisee 101: Dog Days of Operations

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A federal court in Missouri granted franchisor’s motion for preliminary injunction against its former franchisee, enjoining the former franchisee from operating a competing business from the former franchised location....more

Foley & Lardner LLP

Franchisor Enforces Its Trademark Rights Against Former Prospective Franchisee

Foley & Lardner LLP on

A franchisor may pursue claims for declaratory and injunctive relief for potential trademark infringement against a former prospective franchisee even though the prospect never actually used the marks in question. Grainier...more

Bradley Arant Boult Cummings LLP

LADR Case Notes (August 2022-October 2022) and FLJ Currents (Winter 2023)

A gym franchisor recently secured a preliminary injunction against its former franchisee prohibiting the franchisee from operating an independent gym on the same location and using the franchisor’s trade secrets. Chris...more

Lathrop GPM

Delaware Bankruptcy Court Grants Motion to Dismiss Time-Barred Claims for Breach of Franchise Agreement

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A federal bankruptcy court in Delaware has dismissed time-barred claims that a Chapter 7 Trustee alleged on behalf of a bankrupt franchisor, AVF Franchising, LLC, against several of its franchisees. In re Start Man Furniture,...more

Lewitt Hackman

Franchisee 101: Successor Slips Out of Non-Compete

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A Florida federal court granted a preliminary injunction against a terminated franchisee. The court enjoined the ex-franchisee from using the franchisor’s trademarks and trade dress. The court enforced the franchisor’s...more

Lewitt Hackman

Franchisee 101: Trademark Licensee's Rights Survive "Rejection" of Agreement in Bankruptcy

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On May 20, 2019, the U.S. Supreme Court ruled that a bankrupt debtor’s “rejection” of a trademark licensing agreement does not terminate the licensee’s rights. This was under a part of the Bankruptcy Code that provides for...more

Lewitt Hackman

FRANCHISEE 101: Til Expiration Do Us Part

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Though an individual owner and operator of a formerly franchised Church's Chicken restaurant in Texas was not a signer of the franchise agreement, a district court ruled the individual was subject to the agreement's...more

Troutman Pepper Locke

Federal Court Reinforces That Franchisors Should Control Advertising to Ensure Uniformity

Troutman Pepper Locke on

An Illinois federal judge recently found that a franchisor has the absolute right to control its franchisees’ advertising of the products and services offered under a franchise. Lokhandwala v. KFC Corp., No. 17-cv-6394 (N.D....more

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