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The Franchise Memorandum

The Franchise Memorandum

  • Posts by David Archer
    Associate

    David Archer is a commercial litigator helping large companies resolve complex business and regulatory disputes in state and federal courts. His practice has an emphasis on franchise disputes and he has served clients in the ...

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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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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Posted in Arbitration

A federal court in Tennessee recently granted a franchisor’s motion to compel arbitration, including as to questions of arbitrability, in response to a 15 count complaint brought by 54 separate franchisees. Anthony v. Van Over, 2023 WL 6317685 (E.D. Tenn. Sept. 27, 2023).

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Posted in Employment

The First Circuit Court of Appeals recently certified to the Massachusetts Supreme Court the question of whether franchisee plaintiffs in an ongoing case pass the threshold inquiry under the state’s three-prong employee classification test, which requires a finding that the putative employee is “performing any service.” Patel v. 7-Eleven, Inc., 2023 WL 5542778 (1st Cir. Aug. 29, 2023).

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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).

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A Louisiana Federal court recently dismissed a complaint brought by Tesla against the Louisiana Automobile Dealers Association (LADA) and other associated dealerships and commissioners for various competition and constitutional claims stemming from Louisiana’s ban on direct sales of automobiles. Tesla, Inc. v. Louisiana Automobile Dealers Assoc., 2023 WL 4053438 (E.D. La. June 16, 2023).

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A federal court in Michigan granted a motion to dismiss claims that franchisor Bateel International, LLC had violated the Michigan Franchise Investment Law and the Texas Business Opportunity Act. Luxury Concepts, Inc. v. Bateel Int’l LLC, 2023 WL 3606649 (E.D. Mich. May 23, 2023).

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Reflecting a shifting national landscape on restrictive covenants, the Minnesota Legislature recently adopted legislation that prohibits franchisors from placing certain nonsolicitation and no-poach restrictions in franchise agreements.

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Posted in Arbitration

A federal court in New York recently upheld an arbitration award, rejecting an argument that the arbitrator had improperly applied Puerto Rico law. Conmed Corp. v. First Choice Prosthetic & Orthopedic Serv., 2023 WL 157957 (N.D.N.Y. Jan. 11, 2023).

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Posted in Noncompetes

A federal court in Arizona recently denied preliminary relief enforcing franchisees’ noncompete provisions against nonsignatories to the franchise agreement because the franchisor failed to present sufficient evidence that the franchisees were acting in concert with the nonsignatory companies. JTH Tax v. Anderson, 2023 WL 2072496 (D. Ariz. Feb. 17, 2023).

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About this Publication

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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