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The Franchise Memorandum

Posts from March 2024 - Issue 299.
Posted in Patents

The Federal Circuit Court of Appeals reversed a preliminary injunction granted as to franchisor Urban Air’s patent and trade dress infringement claims against Kangaroo, LLC. UATP IP, LLC v. Kangaroo, LLC, 2024 WL 658205 (Fed. Cir. Feb. 16, 2024).

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Posted in Settlement

The Eleventh Circuit Court of Appeals recently upheld a settlement agreement between a franchisor and former franchisee that the franchisee alleged was obtained under the threat of criminal prosecution. Sewalk v. Valpak Direct Mktg. Sys., LLC, 2024 WL 767619 (11th Cir. Feb. 26, 2024).

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Posted in Trade Secrets

A Virginia federal court recently granted a motion to dismiss all six counts of a franchisor's complaint against a competing former franchisee for failure to plead with specificity under the Defend Trade Secrets Act of 2016 (DTSA), Plaintiff's sole basis for federal jurisdiction. JTH Tax LLC v. Cortorreal, 2024 WL 897605 (E.D. Va. Mar. 1, 2024).

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A federal court in Pennsylvania granted in part and denied in part a licensee’s motion to dismiss the licensor’s breach of contract, fraud, and Lanham Acts claims. Westbrook Monster Mix Co. v. Easy Gardener Prods., Inc., 2024 WL 816243 (E.D. Pa. Feb. 27, 2024).

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Posted in Damages

An appellate court in California has affirmed a trial court’s rejection of more than $4 million in lost business profits, which appellant Glen Suh alleged in a breach of contract action against franchisor Boba Time, Inc. Suh v. Pak, 2024 WL 768839 (Cal. App. Feb. 26, 2024).

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Posted in Contracts

A federal court in Illinois recently dismissed a former franchisee’s counterclaims for alleged fraudulent misrepresentation, breach of contract regarding the franchisor’s advertising fund, and breach of contract and implied contract for failure to certify a franchisee’s SBA loan. Chicago Franchise Sys., Inc. v. Dominque, 2024 WL 756806 (N.D. Ill. Feb. 23, 2024).

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Posted in Employment

In a recent client alert, Lathrop GPM attorneys Michael Gray and David Archer wrote about the recent decision from a Texas federal court striking down the National Labor Relations Board’s new 2023 joint employer rule, which was set to go into effect March 11, 2024. The court’s order restored the previous 2020 Rule, holding that the NLRB’s decision to rescind the 2020 Rule was “arbitrary and capricious.”

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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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