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A federal court in Arizona recently granted franchisor LeTip World Franchise’s motion to temporarily restrain and preliminarily enjoin a former franchisee from operating a competing business. LeTip World Franchise, LLC v. Long Island Social Media Group LLC, WL 380985 (D. Ariz. Feb. 1, 2024).

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A federal court in Florida recently granted in part and denied in part a former franchisee’s motion to dismiss claims for breaching a post-termination noncompete agreement, trademark infringement, and unfair competition. CHHJ Franchising LLC v. Spaulding, 2024 WL 229406 (M.D. Fla. Jan. 22, 2024).

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Posted in Antitrust

Real estate brokerage franchisor Keller Williams has agreed to a settle claims related to the ongoing broker commission antitrust litigation. Burnett v. National Ass’n of Realtors, Case No. 4:19-CV-00332 (W.D. Mo.),

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Posted in Attorneys' Fees

A federal court in Connecticut reduced attorneys’ fees and costs sought by a sales representative after the court raised concerns about several issues with the sales representative’s trial strategy. Trade Links, LLC v. Bi-Qem SA de CV, 2024 WL 198024 (D. Conn. Jan. 18, 2024).

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A federal court in Illinois recently granted partial summary judgment to LMLC Franchising, LLC (LMLC-F), LMLC Management, LLC (LMLC-M), and Todd Barnhardt on claims brought by John Doe and Aylin & Ramtin, LLC (A&R) for breach of fiduciary duty and violating the Illinois Franchise Disclosure Act (IFDA), among others. Aylin & Ramtin, LLC v. Barnhardt, 2024 WL 325384 (N.D. Ill. Jan. 29, 2024).

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A federal court in Georgia recently dismissed the claims of an alleged human trafficking victim against hotel franchisor G6 Hospitality, while allowing some claims to proceed against the hotel franchisee. Doe (K.B.) v. G6 Hosp., LLC, 2023 WL 8650785 (N.D. Ga. Dec. 14, 2023).

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Posted in Arbitration

A federal court in North Carolina has held that considerations of judicial economy required that litigation of nonarbitrable claims should be stayed pending completion of a related arbitration. Medical Search Consultants, LLC v. Pasture Gate Holdings, Inc., 2023 WL 8532400 (W.D.N.C. Dec. 8, 2023).

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Posted in Arbitration

A state appellate court in California reversed a superior court’s denial of a massage franchisor’s motion to compel arbitration. Jane Doe #1 (I.G.) v. Massage Envy Franchising, LLC, 2023 WL 8801517 (Cal. Ct. App. Dec. 20, 2023).

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Posted in Antitrust

A federal court in California denied a franchisor’s motion to dismiss a consumer’s claims for a violation of the unfair-practices prong of California’s Unfair Competition Law (UCL) and unjust enrichment. Torres v. Botanic Tonics, LLC, 2023 WL 8852754 (N.D. Cal. Dec. 21, 2023).

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Posted in Noncompetes

The Eleventh Circuit Court of Appeals recently affirmed in part, and vacated in part, a district court’s issuance of an injunction preventing a franchisor’s enforcement of a noncompete covenant as written but allowing enforcement of the covenant as modified, or “blue penciled,” by the court. Baldwin v. Express Oil Change, LLC, 87 F.4th 1292 (11th Cir. 2023).

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About this Publication

The Franchise Memorandum is a collection of postings on summaries of recent legal developments of interest to franchisors brought to you by Lathrop GPM LLP. 

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