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Franchise 101: No Control, No Liability; and Muscling Through the Competition
FRANCHISOR 101: No Control, No Liability A California federal court granted summary judgment in favor of Red Roof Inns, a hotel franchisor, on sex trafficking claims brought under the Trafficking Victims Protection Reauthorization Act (TVPRA).
Franchise 101: Under Hot Water in the Proper Court; and Kicking Injunctions to the Curb
Franchisor 101: Under Hot Water in the Proper Court A Washington federal court denied a franchisor’s motion to dismiss for lack of personal jurisdiction, finding the court had personal jurisdiction over a franchisor’s agents who
Franchise 101: Nonperformance – Fact or Fiction?; and No Spice, No Injunction
FRANCHISOR 101: Nonperformance – Fact or Fiction? A New Jersey federal court granted in part a hotel franchisor’s motion for summary judgment against its franchisee and the guarantor of the personal guaranty, for breach of
Franchise 101: Charging Toward Arbitration; and Non-Compete Jumpstarted in Bankruptcy
Franchisor 101: Charging Toward Arbitration A California federal court granted a motion to compel arbitration by retail franchisor Batteries Plus and its two executives, and dismissed a franchisee’s action alleging violations of the California Franchise
Franchise 101: All-Franchisor-Can-Eat; and Lights, Camera, Jurisdiction
Franchisor 101: All-Franchisor-Can-Eat A federal district court in New Jersey recently found that restaurant franchisor Golden Corral was entitled to nearly $1.2 million in consequential damages after terminating a franchised Golden Corral restaurant. Golden Corral
Franchise 101: Delivering Timely Terminations; and Extra Cheesed Franchisee
Franchisor 101: Delivering Timely Terminations A trial judge for the United States Bankruptcy Court in Illinois denied a franchisee’s motion to enforce an automatic stay against The UPS Store (“TUPSS”), concluding that TUPSS’ termination of
Franchise 101: Pieces of the Trademark Pie; and Frozen Out of Court
Franchisor 101: Pieces of the Trademark Pie An Illinois federal district court granted partial summary judgment in a trademark dispute against Ledo Pizza System, Inc. (“System”) and Ledo Pizza Carryouts, Ltd. (“Carryouts”), a franchisor of
Franchise 101: Joint Employer? Check √; and Braking the Competing Business
Franchisor 101: Joint Employer? Check √ A Maryland federal district court denied a restaurant franchisor’s motion to dismiss, concluding that a restaurant manager at a franchised location alleged sufficient facts to support a finding that
Franchise 101: A Tinted FDD; and Tea Up Your Business Expansion
Franchisor 101: A Tinted FDD A Tennessee federal district court granted a franchisee’s request for a preliminary injunction to prevent the franchisor from enforcing noncompete restrictions under the franchise agreement while the franchisee litigated its
Franchise 101: Getting Away With Tax (Franchisor) Evasion; and Fraud Claim Muzzled by Contractual Limitations Period
Franchisor 101: Getting Away With Tax (Franchisor) Evasion A Pennsylvania federal court refused to enforce non-competition and non-solicitation covenants in a franchise agreement of a nationwide tax preparation service franchisor. The court dismissed the franchisor’s