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The Franchise Memorandum

The Franchise Memorandum

  • Posts by Shlomo Hahn

    Shlomo Hahn is an associate assisting clients with general business litigation, specifically in the areas of complex business transaction disputes and issues relating to corporate governance. Shlomo has also expanded his ...

A federal court in Georgia recently dismissed the claims of an alleged human trafficking victim against hotel franchisor G6 Hospitality, while allowing some claims to proceed against the hotel franchisee. Doe (K.B.) v. G6 Hosp., LLC, 2023 WL 8650785 (N.D. Ga. Dec. 14, 2023).

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A federal court in Wisconsin recently denied a manufacturer’s motion to amend a previously issued injunction in which the manufacturer sought permission to sell products via Brava Salon Specialists, LLC v. REF N.A., Inc., 2023 WL 7709310 (W.D. Wis. Nov. 15, 2023).

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Posted in Arbitration

In Munoz, v. Earthgrains Distribution, LLC, 2023 WL 5986129 (S.D. Cal. Sept. 13, 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 Contracts

The Fifth Circuit Court of Appeals recently affirmed a federal district court’s ruling in a breach of contract action brought by Shenzen Synergy Digital, a China based manufacturer and exporter, against Mingtel, a Texas based importer. Shenzen Synergy Digital Co., Ltd. v. Mingtel, Inc., 2023 WL 4573552 (5th Cir. July 18, 2023).

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Posted in Bankruptcy

A federal bankruptcy court in Delaware has dismissed time-barred claims that a Chapter 7 Trustee alleged on behalf of a bankrupt franchisor, AVF Franchising, LLC, against several of its franchisees. In re Start Man Furniture, LLC., 2023 WL 2717662 (Bankr. D. Del. Mar. 30, 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 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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A federal court in Minnesota has dismissed a claim under the Minnesota Franchise Act (MFA), holding that a franchisor’s consent to the assignment of a franchise does not constitute a sale or an offer to sell under the Act. LG2, LLC, v. Am. Dairy Queen Corp., 2023 WL 171792 (D. Minn. Jan. 12, 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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