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Franchise 101: Inhospitable Forum Selection Clause; and Strong Releases Protect Fitness Franchisor
FRANCHISOR 101: Inhospitable Forum Selection Clause A hotel franchisee brought a class action lawsuit in Louisiana federal court on behalf of Louisiana franchisees. The franchisor moved to transfer the action to Georgia, based on the
Franchise 101: A Convenient Truth; and Jani-King Franchisees Wear Many Crowns
Franchisor 101: A Convenient Truth In 2017, four former franchisees brought a class action in California, claiming 7-Eleven owed them unreimbursed expenses. The ex-franchisees claimed they were employees, not independent contractors of 7-Eleven. The court
Franchise 101: Pizza Termination in 30 Days or Less; and Match-Taker
Franchisor 101: Pizza Termination in 30 Days or Less An area developer entered into three agreements with a pizza franchisor and developed 50 franchises in Texas. The franchisor, Pizza Inn, Inc., tried to terminate all
Franchise 101: Competing With a Non-Compete Covenant; and Planet Interference
Franchisor 101: Competing With a Non-Compete Covenant? A federal court in Louisiana granted a preliminary injunction against a former franchisee of Liberty Tax Service for breaching post-termination covenants under a franchise agreement. Liberty Tax
Franchise 101: Defaults Sink Bathroom Remodel Franchisee; and Real Estate Amendment Not Up to Interpretation
June 2021 FRANCHISOR 101: Defaults Sink Bathroom Remodel Franchisee On competing motions for a temporary restraining order (“TRO”) by ReBath – a nationwide bathroom remodeling franchisor, and its terminated franchisee, ReBath prevailed in restraining the
Franchise 101: Can’t Break the Broker; and Bad to the Bone
Franchisor 101: Can’t Break the Broker A Minnesota federal court ruled in favor of a franchise broker on summary judgment. The court dismissed misrepresentation claims brought by a military veteran who alleged unlawful inducement to
Franchise 101: Successor Franchisor’s Territorial Takeover; and McDonald’s Cooks Up COVID-19 Insurance Coverage
Franchisor 101: Successor Franchisor’s Territorial Takeover A federal court in Connecticut ruled against an urgent care franchisor’s motion to dismiss, finding the plaintiff had standing to sue under Article III of the U.S. Constitution. The
Franchise 101: Is Matco the Next Jan-Pro? and No Legal Cure for Serial Defaults
Franchisor 101: Is Matco the Next Jan-Pro? A federal court in California certified a class of Matco Tools franchisees who claimed to be misclassified by Matco as independent contractors rather than employees. They claimed Matco
Franchise 101: Court Delivers Liquidated Damages; and Convenience Store Pays for Inconvenience
Franchisor 101: Court Delivers Pizza Franchisor Liquidated Damages The Sixth Circuit Court of Appeals recently affirmed a $2.6 million award of liquidated damages in favor of a pizza franchisor and a summary judgment order enforcing
Franchise 101: California’s Dynamex/ABC Test is Retroactive; and No Excuse for Late Notice
January 28, 2021 Franchisor 101: California’s Dynamex/ABC Test is Retroactive In 2019, the U.S. Court of Appeals for the Ninth Circuit held that the ABC Test announced in a California Supreme Court decision, Dynamex Operations