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The Franchise Memorandum

The Franchise Memorandum

  • Posts by Michael R. Gray
    Partner

    Mike Gray represents companies and individuals in trial, arbitration, mediation, and other civil proceedings throughout the United States. As a member of the firm's Franchise and Distribution Practice Group, Mike is lead ...

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 Noncompetes

The Eleventh Circuit Court of Appeals recently affirmed in part, and vacated in part, a district court’s issuance of an injunction preventing a franchisor’s enforcement of a noncompete covenant as written but allowing enforcement of the covenant as modified, or “blue penciled,” by the court. Baldwin v. Express Oil Change, LLC, 87 F.4th 1292 (11th Cir. 2023).

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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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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).

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Posted in Arbitration

In a case involving an unorthodox procedural posture, a federal court in Oregon determined that nonsignatory franchisee owners are not subject to a franchise agreement arbitration provision. Goergen v. Black Rock Coffee B., 2023 WL 1777980 (D. Or. Feb. 6, 2023).

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An appellate court in Louisiana recently affirmed summary judgment in favor of a franchisor, dismissing negligence and premises liability claims asserted by a customer was injured on unauthorized exercise equipment. Flynn v. Anytime Fitness, 2022 WL 17982922 (La. App. Dec. 29, 2022).

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Posted in Contracts

A federal court in Michigan granted partial summary judgment to a steel supplier defending claims for breach of an oral contract and violation of Michigan’s Sales Representatives Commission Act. L.V. Nagle & Assocs. v. Tubular Steel, 2022 WL 3568574 (E.D. Mich. Aug. 18, 2022).

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A federal court in New York denied in part a motion to dismiss a franchisee’s fraud and negligent representation claims. Gould v. ILKB, LLC, 2022 WL 2079652 (E.D.N.Y. June 9, 2022).

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Posted in Employment

A federal court in Illinois recently dismissed a franchisee employee’s Title VII hostile work environment and related Illinois state-law claims against the franchisor. Budzyn v. KFC Corp., 2022 WL 952746 (N.D. Ill., Mar. 30, 2022).

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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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