News & Analysis as of

Non-Compete Agreements Franchisors Trademarks

Non-Compete Agreements are contracts, typically formed in employment or business purchase contexts, where one party agrees to refrain from engaging in a particular line of work or pursuing business within a... more +
Non-Compete Agreements are contracts, typically formed in employment or business purchase contexts, where one party agrees to refrain from engaging in a particular line of work or pursuing business within a certain industry or locale. The purpose of these agreements is to protect employers or business purchasers from competition stemming from former employees or former owners of a business. less -
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

Lathrop GPM

New Jersey Federal Court Partially Enforces Noncompete Covenant Against Former Franchisee

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A federal court in New Jersey recently granted a franchisor’s motion for a preliminary injunction, enjoining the former franchisee from using the franchisor’s marks and violating the franchise agreement’s noncompete clause,...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

Foley & Lardner LLP

“If It’s Not Broken, Don’t Fix Break It”— The FTC Targets the Franchise Business Model

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Historically, the Federal Trade Commission (FTC) has shied away from regulating the substance of franchisor-franchisee relationships. A recent FTC press release, however, suggests this may soon change. If so, it is by no...more

Foley & Lardner LLP

Federal Appeals Court Rules on Franchisor’s Power to Impose Changes on Franchise System

Foley & Lardner LLP on

The Eleventh Circuit Court of Appeals recently issued an opinion concerning a dispute over a franchisor’s effort to mandate changes to a franchisee’s operations. The Court granted the franchisor a mixed result. The decision...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: 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

Baker Donelson

Franchisor Protected from Unfair Competition, Not All Competition

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The fine line between protecting your system's legitimate interests and trying to eliminate a competitor can be hard to define in advance. With social media so important for consumer businesses, the line is even more...more

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