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Sherman Act Franchises Franchise Agreements

Zelle  LLP

Burger King Employees Persist After Renewed Motion to Dismiss

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Last month, Judge Jose E. Martinez of the U.S. District Court for the Southern District of Florida denied the Burger King Defendants’ (“Burger King”) motion to dismiss a putative class action alleging that its “No-Hire”...more

Bilzin Sumberg

District Court Denies Burger King’s Motion to Dismiss Putative Class Action Related to No-Poaching Provisions in Franchise...

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Arrington v. Burger King Worldwide, Inc., No. 1:18-cv-24128 (S.D. Fla. Oct. 5, 2018) – In October 2018, Jarvis Arrington, a former employee at a Burger King franchisee in Illinois, filed a class action complaint against...more

Patterson Belknap Webb & Tyler LLP

Seventh Circuit Rescues McDonald’s Workers’ Challenge to No-Poach Clause

The Seventh Circuit recently revived an antitrust challenge to a clause in McDonald’s franchise agreements barring franchises from poaching other franchises’ employees. (See our previous coverage of antitrust challenges to...more

Lathrop GPM

Seventh Circuit Reverses Dismissal of Anti-Poaching Class Action Against McDonald’s

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In an important case of first impression that drew amicus participation from the Department of Justice, the Federal Trade Commission, and the International Franchise Association, the Seventh Circuit reversed a judgment in...more

Quarles & Brady LLP

Seventh Circuit Rejects Dismissal of Franchisee No-Poach Clause Challenge

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In Deslandes v. McDonald’s USA LLC, issued August 25, 2023, the U.S. Court of Appeals for the Seventh Circuit overturned the dismissal of antitrust claims that challenged no-poach clauses in franchise agreements....more

Lathrop GPM

Missouri Federal Court Denies Summary Judgment to Franchisors on Antitrust Claims

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A federal court in Missouri recently ruled that antitrust claims against four real estate broker franchisors and a trade association may proceed to trial based on evidence that the association’s code of ethics may inflate...more

Bilzin Sumberg

Eleventh Circuit Revives Putative Class Action Against Burger King for Violation of Federal Antitrust Laws Based on No-Poaching...

Bilzin Sumberg on

Arrington v. Burger King Worldwide, Inc., No. 20-13561 (11th Cir. Aug. 31, 2022) – In October 2018, a former line cook of a Burger King franchise restaurant in Illinois, filed a class action complaint in the District Court...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Eleventh Circuit Serves a Whopper of a Ruling on Franchisor’s ‘No-Poach’/‘No-Hire’ Agreement With Franchisees

​​​​​​​Over the last several years, business-to-business “no-hire” and “no-poach” agreements have come under legal attack, including through enforcement actions by the Federal Trade Commission and criminal prosecutions by the...more

BakerHostetler

Decision Benefits Franchise Businesses and Finds Alston Bars Challenge to No-Poach Agreements

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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

Stark & Stark

No-Poach Clauses in Franchise Agreements: The Saga Continues in 2022

Stark & Stark on

For the past few years, it seems franchisors have been riding a roller coaster when it comes to no-poach clauses in their franchise agreements. While for a time it seemed as though scrutiny for such clauses might be fading,...more

Parker Poe Adams & Bernstein LLP

Franchises Continue to Face Litigation Over Employee ‘No-Poaching' Agreements

Several years ago, state attorneys general began investigating claims of antitrust violations based on franchise agreements that required franchisees not to hire employees of another franchisee. Despite the regular use of...more

Fox Rothschild LLP

No-Hire And No-Solicit Covenants Could Be Overcooked

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Many franchise agreements contain a provision that restricts a franchisee from hiring or soliciting the employees of the franchisor or other franchisees. A class action lawsuit that was recently filed in the Eastern District...more

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