If your brand standards require franchisees to upgrade and improve their locations, a recent federal case demonstrates how thoughtful disclaimers and disclosures can shut down a franchisee lawsuit in its
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Legal Decisions
Location, location, location: Franchise litigation in the venue of your choosing
A Massachusetts franchisor can sue an Oregon franchisee in Massachusetts, according to a recent decision from the United States Court of Appeals for the First Circuit. The case contains important…
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Franchisor did not violate disclosure law, 5th Circuit agrees
Last June we blogged about a lawsuit that ended favorably for a franchisor. In Braatz, LLC v. Red Mango FC, LLC, the trial court determined that a franchisor did…
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Walking the tightrope: Protecting multiple locations vs. overbroad non-competes
Congratulations! Your franchise system has opened multiple locations across the state, region or maybe even country. Now, how can you protect against a former franchisee competing with your other locations…
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Drafting Matters: Franchise agreement fells misrepresentation claim
A federal court in Minnesota recently dismissed a franchisee’s misrepresentation claims thanks to the franchisor’s carefully drafted franchise agreement.
Franchisee Moxie Venture L.L.C. (“Moxie”) brought suit against franchisor The UPS…
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Joint employer claims move forward against hotel franchisor in sexual servitude suit
Browning-Ferris based claims against hotel franchisor Marriott International Incorporated (“Marriott”) will move forward, according to an Illinois federal court. The suit seeks to hold Marriott liable as a joint employer…
Continue Reading Joint employer claims move forward against hotel franchisor in sexual servitude suit
California Franchise Relations Act amendments make breaking up hard(er) to do
Finding the right franchisee can be a daunting task. Despite a franchisor’s best efforts, sometimes a franchisee just isn’t a good fit. When it’s not working out, franchisors rely on…
Continue Reading California Franchise Relations Act amendments make breaking up hard(er) to do
Want to enforce your arbitration provision? Then say it loud and clear (and unmistakably)!
So, your franchise agreement has an airtight arbitration provision…right? It probably says that if any disputes arise out of your franchise agreement, then they must be arbitrated (rather than litigated). …
Continue Reading Want to enforce your arbitration provision? Then say it loud and clear (and unmistakably)!
A Tale of Two Non-Competes: Why Drafting Matters
In a recent blog, we cautioned readers that an overprotective non-compete can result in no protection at all. In that case, Unlimited Opportunity, Inc. v. Waadah, a franchisor…
Continue Reading A Tale of Two Non-Competes: Why Drafting Matters
Long Arm of Browning-Ferris? Hotel franchisor named as “joint employer” in alleged sexual servitude suit
A hotel assistant manager who allegedly coerced housekeepers into sexual “servitude” is now defending himself in federal court, along with his employer TMI Hospitality Incorporated (“TMI”). But they’re not alone: …
Continue Reading Long Arm of Browning-Ferris? Hotel franchisor named as “joint employer” in alleged sexual servitude suit