3 Key Takeaways | Is Franchising Doomed? The 2024 Version
One Month to More Effective Compliance on Business Ventures - Day 19 - Franchisor Compliance
Is Franchising Doomed?
Strategies for Negotiating with a Franchisee and Franchisor
Day 20 of One Month to More Effective Compliance for Business Ventures-Franchisor Liability
Franchising as a legal relationship has embraced mediation as a pre-filing requirement to a lawsuit or arbitration in many franchise agreements. So, how has it gone? Originally published in the ABA’s The Franchise Lawyer -...more
An Arizona federal court dismissed a franchisee’s counterclaims for breach of contract, defamation, and injunctive relief against LeTip World Franchise, a professional networking franchisor....more
A California federal court stayed proceedings in favor of the franchisor and ordered the parties to undertake the dispute resolution procedures in the franchise agreement, holding that the parties clearly and unmistakably...more
Scion Hotels LLC appealed a federal district court’s ruling regarding the non-renewal of a franchise agreement under the New Jersey Franchise Practices Act (NJFPA). The United States Court of Appeals for the Third Circuit’s...more
As shopping malls across the country face closures due to shifting consumer habits and the rise of e-commerce, franchises are finding new opportunities in the wake of these closures. With declining rents, access to...more
In the home health care business? Whether a franchisor, franchisee, or independent agency, beware of bodily injury exclusions in professional liability policies that could eliminate coverage for otherwise covered claims....more
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
Hotel owners have many considerations when choosing between a franchise agreement or a management agreement with a hotel brand, most crucially factors such as how much control and flexibility an owner wishes to maintain...more
Understanding Franchise Riders: Purpose, Content, and Potential Conflicts - When a franchisee signs a retail commercial lease to operate a franchised business, the franchisor may require a Franchise Rider, a document that...more
A company considering franchising may see exemptions as an ideal way to avoid burdensome registration and disclosure requirements and streamline their path to market. Indeed, exemptions reduce time, avoid the process of...more
A federal court in Missouri recently denied franchisor Three Dog Bakery, LLC’s request for a temporary restraining order (TRO) against its former franchisee, J.L.E.T. Enterprises SWF, LLC, and its owners, Joseph and Lynette...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
Constructing a hotel is a complex endeavor that requires meticulous planning and execution to meet the expectations of both the developer and the flag. One of the critical aspects of this process is ensuring that the...more
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
The Texas Supreme Court reversed a lower court’s decision against a franchisor based on a theory of negligence after a customer was assaulted by an employee of the franchisee. The court concluded that franchisor did not owe a...more
On May 2, 2025, the Texas Supreme Court held that a franchisor owes no duty of care for injuries caused by a franchisee’s employee unless the franchisor retained or exercised control over the hiring of that employee....more
Dispute resolution provisions in franchise agreements often address how, when, and where parties will mediate. However, the enforceability of these provisions can change depending on the law of the state governing the...more
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
A federal court in New Jersey recently entered default judgment against franchisee Nisha Investments, LLC and its guarantor Rajesh Patel arising from their early termination of a franchise agreement with La Quinta...more
A federal court in Arizona recently dismissed a franchisee’s counterclaims for breach of contract, defamation, and injunctive relief against its former franchisor. LeTip World Franchise LLC v. Long Island Soc. Media Grp. LLC,...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
From streaming services and gym memberships to software vendor agreements and e-commerce franchises, automatic contract renewals are common occurrences. Currently, California law protects consumers regarding automatic renewal...more
A New York federal court denied a franchisor’s motion to dismiss a franchisee’s complaint for misrepresentations and improper financial performance representations which allegedly induced the franchisee to enter into multiple...more
The Eighth Circuit recently applied a novel, broad reading of the Missouri Franchise Act granting franchise protection to distributors which previously would not likely have been considered franchisees....more
An Ohio federal court granted a franchisor’s motion to dismiss a putative class of franchisees alleging antitrust violations and related claims, including interference to deflate franchisees’ reimbursement rates. Other class...more