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The Franchise Memorandum

The Franchise Memorandum

  • Posts by Eli Bensignor
    Partner

    Eli Bensignor dedicates his practice to franchise, distribution, and licensing matters. He counsels emerging and seasoned franchisors across the U.S. on day-to-day matters, including analyzing and drafting agreements and ...

Posted in Arbitration

A state appellate court in California reversed a superior court’s denial of a massage franchisor’s motion to compel arbitration. Jane Doe #1 (I.G.) v. Massage Envy Franchising, LLC, 2023 WL 8801517 (Cal. Ct. App. Dec. 20, 2023).

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A federal court in Washington denied the State of Washington’s motion to dismiss an out-of-state distiller’s constitutional challenge to Washington’s distillery regulatory scheme. Shady Knoll Orchards & Distillery LLC v. Postman, 2023 WL 7004422 (E.D. Wash. Oct. 24, 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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Posted in Contracts

A federal court in Tennessee determined that a binding contract existed between a sales representative and CWS Powder Coatings Company governing the percentage of commissions to be paid to the representative for sales to Premier, a CWS customer. The court also concluded, however, that there was no binding agreement requiring payment of commissions on sales to Carrier, a prospective customer at the time the alleged agreement was formed, who began purchasing from CWS nine years later. Reaves v. CWS Powder Coatings Co., No. 3:22-cv-0158 (M.D. Tenn. May 24, 2023).

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Posted in Employment

A federal court in Michigan recently denied a franchisor’s motion to dismiss claims alleging that it was liable as a joint employer for claims under Title VII of the Elliott-Larsen Civil Rights Act, Michigan’s state counterpart to Title VII. Acuff v. Dy N Fly, LLC, 2023 WL 3293278 (E.D. Mich. May 5, 2023).

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Posted in Nonrenewal

A federal court in Tennessee denied a dealer’s motion to dismiss a supplier’s declaratory judgment action because it was unclear whether a CEO’s departure was a “substantial” change in ownership that would establish good cause for nonrenewal. Wirtgen Am. v. Hayden-Murphy Equip., 2023 WL 123499 (M.D. Tenn. Jan. 6, 2023).

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Posted in Contracts

A state appellate court in New York recently held a franchisor was not entitled to unpaid royalty fees because of its own breach of a franchise agreement reinstated by preliminary injunction. Integrity Real Estate Consultants v. Re/Max of New York, 2023 WL 2000464 (N.Y. App. Div. Feb. 15, 2023).

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Posted in Attorneys' Fees

A federal court in Massachusetts has denied a franchisor’s summary judgment motion which sought attorneys’ fees related its defense of previously dismissed claims. Patel v. 7-Eleven, 2023 WL 35357 (D. Mass Jan. 4, 2023).

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Posted in Arbitration

A California appellate court recently affirmed a trial court’s ruling that a customer had not agreed to arbitrate claims against a franchisor when she was presented with a “Terms of Use Agreement” at a franchised location. Doe v. Massage Envy Franchising, LLC, 2022 WL 17984107 (Cal. Ct. App. Dec. 29, 2022).

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A federal court in Oklahoma preliminarily enjoined a former franchisee from using the franchisor’s marks and from violating its post-term noncompete following termination. Sonic Indus. LLC v. Olympia Cascade Drive Ins LLC, 2022 WL 3654748 (W.D. Okla. Aug. 24, 2022).

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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).

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Posted in Employment

A federal court in Illinois denied Subway’s motion to dismiss a claim that it violated the Illinois Biometric Information Privacy Act (BIPA) by failing to obtain a franchisee’s employee’s consent for the collection and possession of the employee’s fingerprints. Ronquillo v. Doctor’s Assocs., LLC, 2022 WL 1016600 (N.D. Ill. Apr. 4, 2022).

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Posted in Employment

A federal district court in New York granted franchisor Just Salad’s motion for summary judgment on all claims against it and against various franchisees who never employed the plaintiffs. Tecocoatzi-Ortiz, v. Just Salad, LLC, 2022 WL 596831 (S.D.N.Y. Feb. 25, 2022).

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A federal court in New Jersey recently denied a hotel franchisor’s motion for summary judgment that sought damages due to a franchisee’s unapproved transfer of the hotel. Travelodge Hotels, Inc. v. Huber Hotels, 2022 WL 44634 (D.N.J. Jan. 5, 2022).

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A federal court in Georgia refused to dismiss a franchisee’s counterclaim alleging a breach of a franchise termination agreement between the parties. JTH Tax LLC v. Robertson, 2021 WL 5449215 (N.D. Ga. Nov. 22, 2021).

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Posted in Contracts

A federal court in New York granted a franchisor summary judgment, invalidating its purported supply agreement with a food manufacturer and wholesaler. Bonchon v. LKRG Provisions & Holdings, LLC d/b/a Frontier Food Group, 2021 WL 5042858 (S.D.N.Y. Oct. 29, 2021).

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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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