The Franchise Memorandum

In an important case of first impression that drew amicus participation from the Department of Justice, the Federal Trade Commission, and the International Franchise Association, the Seventh Circuit reversed a judgment in favor of McDonald’s and revived a potential employee class action which alleges that the anti-poaching provision formerly found in McDonald’s franchise agreements violates the Sherman Act.

The Tenth Circuit has ruled in favor of KFC in a dispute with a franchisee alleging a breach of the implied covenant of good faith and fair dealing. Kazi v. KFC US, LLC, 2023 WL 4983119 (10th Cir. Aug. 4, 2023).

An appellate court in Illinois upheld a trial court’s dismissal of claims that franchisor was vicariously liable for the alleged actions of its franchisees. Shavers v. The UPS Store, Inc., 2023 IL App (1st) 221407-U (Ill. App. Ct. Aug. 7, 2023).

A federal court in North Carolina recently dismissed a complaint brought by Bigelow Corporation against its franchisor Hound Town USA because the claims were time barred. Bigelow Corporation v. Hounds Town USA, LLC, 2023 WL 4939386 (W.D.N.C. Aug. 2, 2023).

A federal court in Michigan granted Little Caesar Pizza Enterprises, Inc.’s motion for summary judgment seeking to enforce its termination of the franchise agreements between it and franchisee S&S Pizza Enterprises, Inc. Little Caesar Enters., Inc. v. S&S Pizza Enters., Inc., 2023 WL 5489021 (E.D. Mich. Aug. 24, 2023).

A federal court in Utah denied a requested injunction in a dispute between competitors in the gourmet cookie market. Crumbl LLC v. Dirty Dough LLC, (D. Utah Aug. 11, 2023).

In this month’s Increasing Diversity in Franchising article, Iris Rosario, Senior Counsel of Franchise for Choice Hotels International, stands as an admirable example of one who never forgets her roots.