Last week, the Governor of California signed AB 676, which includes several significant amendments to the California Franchise Relations Act and Franchise Investment Law.
Back in January 2022, the Franchise Memorandum reported on the North American Securities Administrators Association’s proposal to eliminate the use of acknowledgments and questionnaires that franchisors usually incorporate into their franchise sales closing process.
A federal court in Virginia held void a franchise agreement’s forum selection provision and granted a franchisee’s motion to transfer the case to California. JTH Tax, LLC v. Leggat, 2022 WL 3970197 (E.D. Va. Aug. 31, 2022).
A federal court in Ohio recently enjoyed a former franchisee from violating the post-term obligations of its franchise agreement, including the post-term covenant not to compete. H.H Fran. Sys., Inc. v. CareSmart Sols., Inc., 2022 WL 4274278 (S.D. Ohio Sept. 15, 2022).
A federal court in Nevada recently denied a franchisee’s motion for preliminary relief in a dispute over renewal of a franchise. Terrier, LLC v. HCAFranchise Corp., 2022 WL 4280251 (D. Nev. Sept. 15, 2022).
A federal court in Texas awarded a defendants’ profits, the franchisor’s lost royalty fees, treble damages, and attorneys’ fees and costs following summary judgment. Choice Hotels Int’l, Inc. v. Gosla Fam. Tr., 2022 WL 4295362 (W.D. Tex. Sept. 16, 2022).
A federal court in Ohio has awarded a franchisor the attorneys’ fees incurred in dismissing its former franchisees’ fraud-based claims, even though breach of contract claims remained to be litigated. CajunLand Pizza, LLC v. Marco’s Franchising, LLC, 2022 WL 3960574 (N.D. Ohio Aug. 31, 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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