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Franchise 101: Court Remediates Damage to Restoration Franchisor; and Fitness Franchisee Exercises Poor Judgment
Franchisor 101: Court Remediates Damage to Restoration Franchisor A federal court in Nashville granted summary judgment on breach of contract claims in favor of a damage restoration franchisor’s lawsuit with a former California franchisee. A
Franchise 101: (Non)Competing for Care; and COVID-19 Defense Leads to Contempt
Franchisor 101: (Non)Competing for Care A U.S. Court of Appeals upheld a federal district court decision partly granting a preliminary injunction sought by a companionship and domestic care services franchisor against a former franchisee, for
Franchise 101: New Joint Employer Rule Nixed for Now; and Trashing the Competition
Franchisor 101: New Joint Employer Rule Nixed In another twist to the joint employer saga, a United States District Court in New York voided the Department of Labor’s (“DOL”) new rule for joint employment. Eighteen
Franchise 101: Taking the Red Pill on Non-Compete Covenants; and They Were Just Kidding
Franchisor 101: Taking the Red Pill on Non-Compete Covenants Franchisors and Franchisees in California have long conducted themselves based on precedent that voids post-termination covenants against competition in a franchise agreement in California. Recently, a
Franchise 101: Nothing Personal in Claims Against Hotel Franchisor; and Successor Slips Out of Non-Compete
FRANCHISOR 101: Nothing Personal in Claims Against Hotel Franchisor A guest sued the Hampton Inn and Suites franchisee in Nashville, Tennessee and the franchisor’s parent company, Hilton Domestic Operating Co., Inc. (“Hilton”), claiming race discrimination
Franchise 101: COVID-19 vs. Item 19; and Recruitment Reprimand
FRANCHISOR 101: COVID-19 vs. Item 19 Item 19 of the Franchise Disclosure Document (FDD) can provide information on how a prospective franchisee may perform financially. Historical financial performance representations (FPRs) may be made if the
Franchise 101: A Sticky Situation; and Expo Is No Excuse
Franchisor 101: A Sticky Situation A federal court in Maryland entered default judgment and a permanent injunction in favor of an ice cream franchisor against a franchisee that continued operating its ice cream shop after
Franchise 101: Not at Liberty to Compete; and Bar-B-Q Blues — A Tale of Friendship, Partnership, and Deceit
FRANCHISOR 101: Not at Liberty to Compete A federal district court in Michigan granted a preliminary injunction in favor of tax preparation franchisor, Liberty Tax Service (JTH Tax, Inc. v. Magnotte, E.D. Mich., ¶16,575), finding
Franchise 101: Joint Employer Wars (The Final Episode?); and The (Ice Cream) Cart Before the Rescission
Franchisor 101: Joint Employer Wars (The Final Episode?) Last month, the National Labor Relations Board (NLRB) issued a final rule governing joint-employer status under the National Labor Relations Act (NLRA). The rule should resolve years
Franchise 101: Romaine Rejection; and A Franchisor Without Urgency
Franchisor 101: Romaine Rejection Many will recall the 2018 national outbreak of E. coli bacteria linked to romaine lettuce. In April that year, an Ohio franchisor ordered its restaurants to stop serving romaine lettuce and