A federal court in New Jersey recently denied a hotel franchisor’s motion for summary judgment that sought damages due to a franchisee’s unapproved transfer of the hotel. Travelodge Hotels, Inc. v. Huber Hotels, 2022 WL 44634 (D.N.J. Jan. 5, 2022).
An appellate court in Texas recently affirmed an award of damages to a franchisor on its claims to recover unpaid amounts under a franchise agreement and sublease. Beach Street Foods, Inc. v. Grandy’s, LLC, 2022 WL 187988 (Tex. Ct. App. Jan. 20, 2022).
A federal court in New Jersey refused to dismiss a counterclaim filed in violation of a contractual forum selection provision because, even though the provision was mandatory and enforceable, the plaintiff’s filing of the initial complaint waived the right to enforce it. The Indian Express Private Ltd. v. Hali, 2022 WL 154354 (D.N.J. Jan. 18, 2022).
A federal court in Tennessee denied a motion to dismiss a franchisee’s allegations of fraud in Item 19 of an FDD. Sugarlips Bakery, LLC v. A&G Franchising, LLC, 2022 WL 210135 (M.D. Tenn. Jan. 24, 2022).
A federal court in California recently denied a motion for a temporary restraining order against a franchisee of a pizza restaurant, concluding that there was not evidence that the franchisor would be irreparably harmed by a franchisee’s refusal to transfer its store back to the franchisor. Mountain Mike’s Pizza, LLC v. SV Adventures, Inc., 2021 WL 6136178 (E.D. Cal. Dec. 29, 2021).
An appellate court in Tennessee affirmed denial of a “Motion to Correct Misnomer,” which resulted in dismissal of a premises liability action for injuries allegedly sustained in a fall at a Long John Silver’s restaurant. Bodine v. Long John Silver’s LLC, 2022 WL 128473 (Tenn. Ct. App. Jan. 14, 2022).
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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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