The Tenth Circuit Court of Appeals recently upheld a preliminary injunction awarded to fitness chain franchisor Core Progression, enforcing a post-termination noncompete against a former franchisee in North Carolina. Core Progression Franchise LLC v. O’Hare, 2022 WL 1741836 (10th Cir. May 31, 2022).
A federal court in New York denied a franchisor’s preliminary injunction motion where it did not establish a likelihood of success on the merits or irreparable harm. JTH Tax LLC v. Agnant, 2022 WL 1556656 (E.D.N.Y. May 17, 2022).
A federal court in New Jersey recently held that a contractual disclaimer of reliance did not bar the franchisee’s claim for fraudulent inducement. TSMA Franchise Sys., Ind., v. TS of Kings Highway Inc., 2022 WL 1602137 (D.N.J. May 20, 2022).
A federal court in Oklahoma denied a motion to dismiss a franchisee’s fraud counterclaims. Pizza Inn, Inc. v. Odetallah, 2022 WL 1671122 (W.D. Okla. May 25, 2022).
A federal court in New Jersey recently entered a $357,917.22 default judgment in favor of a franchisor. Americinn Int'l, LLC v. Mataj12 Corp., 2022 WL 1773779 (D.N.J. June 1, 2022).
Over the last three months, McDonald’s, Burger King, and Cava Grill have been subject to a wave of consumer-product class actions involving a group of chemicals known as per- and polyfluoroalkyl substances or “PFAS.” Plaintiffs in the lawsuits Hussain v. Burger King (N.D. Cal. Apr. 11, 2022); McDowell v. McDonald’s (N.D. Ill. Mar. 31, 2022); Clark v. McDonald’s (S.D. Ill. Mar. 28, 2022); and Hamman v. Cava Group (S.D. Cal. Apr. 27, 2022), bring similar causes of action and seek similar remedies.
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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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