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Posts in Post-Termination Injunctions: Noncompetes.

A federal court in Indiana recently granted a motion by Steak N Shake to temporarily restrain a former franchisee from operating a competing business.

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A federal court in Louisiana granted a preliminary injunction against a former franchisee for breaching post-termination covenants, and the court extended the covenants for 20 months following the date of the injunction.

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A federal court in California granted a franchisor’s motion for a preliminary injunction against a former franchisee alleged to have misappropriated trade secrets and breached a noncompetition provision related to the continued operation of a formerly franchised restaurant. 

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A federal court in New Jersey granted the franchisor Jackson Hewitt a preliminary injunction enjoining a franchisee from violating the franchise agreement’s post-termination covenants.

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A federal court in Missouri granted, in part, a franchisor’s motion for a temporary restraining order against a former licensee. Imo’s Franchising, Inc. v. Kanzoua, Inc., 2020 WL 5534425 (E.D. Mo. Sept. 14, 2020). Imo’s Pizza entered into a licensing agreement with Kanzoua, which allowed Kanzoua to operate an Imo’s Pizza restaurant at its gas station/convenience store location. In July 2020, Imo’s Pizza terminated the agreement. Imo’s Pizza alleged that after termination, Kanzoua continued to sell pizza, hold itself out as an Imo’s-affiliated restaurant, and ...

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A federal court in Tennessee recently enjoined from violating a post-termination noncompete a former franchisee, as well as his son and his son’s competing business — neither of which were party to the franchise agreements. AmeriSpec, LLC v. Sutko Real Estate Servs., Inc., 2020 WL 3913584 (W.D. Tenn. July 10, 2020). Lathrop GPM represented AmeriSpec in this case. In May 2020, Sutko Real Estate Services, Inc. (SRESI) and its principal Thomas Sutko agreed with franchisor AmeriSpec to the termination of the franchise agreements for SRESI’s property inspection franchises. As ...

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A federal court in Texas reached a different conclusion with regard to enforcement of a noncompete covenant, granting in part and denying in part a franchisor’s motion for preliminary injunction to enforce post-termination obligations against a former franchisee. JTH Tax LLC v. White, 2020 WL 3843691 (W.D. Tex. July 8, 2020). White entered into three franchise agreements with JTH to operate three Liberty Tax franchised businesses, and into another franchise agreement to operate one SiempreTax+ franchised business within a Liberty Tax location. Eventually, White closed the ...

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On the other hand, a federal court in Illinois has allowed a franchisor to continue pursuing its breach of noncompete claims against a former franchisee. Auto Driveaway Franchise Sys., LLC v. Auto Driveaway Richmond, LLC, 2019 WL 3302223 (N.D. Ill. July 23, 2019). Defendant Jeffrey Corbett was an Auto Driveaway franchisee until his three franchise agreements were terminated in September 2018. The agreements had two-year post-termination covenants against competition. Following the termination, however, Corbett and his wife allegedly set up and operated a competing business ...

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A federal court in North Carolina granted in part and denied in part the injunctive relief sought by the franchisor, Madvapes, against its former franchisee. AMV Holdings, LLC v. Am. Vapes, Inc., 2019 WL 3406315 (W.D.N.C. July 25, 2019). Madvapes sold a vaping business franchise to American Vapes in 2015. The franchise agreement contained a post-termination noncompete provision that precluded American Vapes, for a period of two years, from entering into a business that would compete anywhere in the same state as the former franchisee or in any state or territory with an existing ...

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A franchisor’s years-long battle to enforce a consent injunction against a terminated franchisee finally ended after a New Jersey federal court reissued sanctions for the franchisee’s breach of the injunction’s covenant against competition. Lawn Doctor, Inc. v. Rizzo, 2019 WL 1299671 (D.N.J. Mar. 21, 2019). As previously reported in The GPMemorandum, this matter began in 2012, when the Rizzos, former franchisees of the Lawn Doctor system, failed to adhere to the terms of their franchise agreement’s noncompete provision. The district court ultimately entered a ...

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On the other hand, a federal district court in Illinois granted in part and denied in part a franchisor’s motion for a preliminary injunction against a recently terminated franchisee who established a competing business. Auto Driveaway Franchise Sys., LLC v. Corbett, Bus. Franchise Guide (CCH) ¶ 16,300 (N.D. Ill Oct. 26, 2018). Auto Driveaway—a business offering vehicle transportation and shipping management services—sought a preliminary injunction and temporary restraining order against Corbett, the owner of the franchise at issue, seeking to enforce a noncompete ...

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The U.S. District Court for the Western District of Wisconsin has denied a franchisor’s renewed motion for a preliminary injunction against its former franchisee, holding that the franchisor failed to show that its trade dress was entitled to protection or that the ex‐franchisee’s potential violation of the noncompete provision in its franchise agreement posed a threat of irreparable harm to the franchisor. E&G Fran. Sys., Inc. v. Janik, 2018 WL 5630589 (W.D. Wis. Oct. 31, 2018). E&G Franchise Systems operates and licenses others to operate Erbert and Gerbert’s Sandwich ...

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Judges in the United States District Court for the Western District of Missouri recently issued orders in two separate cases enjoining two terminated franchisees from operating competing tax-service businesses within 25 miles of their former franchise territory for a period of two years. H&R Block Tax Serv., LLC v. Thomas, 2018 WL 910170 (W.D. Mo. Feb. 15, 2018); H&R Block Tax Serv. v. Frias, 2018 WL 934901 (W.D. Mo. Feb. 16, 2018). In both cases, the terminated franchisees were operating competing businesses in violation of their franchise agreements’ post-termination ...

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A California court of appeal recently affirmed a trial court’s award of more than $800,000 in attorneys’ fees under the state’s Unfair Competition Law (“UCL”) and the issuance of a permanent injunction against U-Haul prohibiting the company from enforcing a covenant against competition in its standard form contract with dealers in the state. Robinson v. U-Haul Co. of Cal., 209 Cal. Rptr. 3d 81 (Cal. Ct. App. 2016). After Robinson terminated the parties’ dealer contract and began renting trucks from a competitor, U-Haul sued for breach of the contract’s covenant ...

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A federal district court in Washington has preliminarily enjoined a terminated distributor from violating the terms of his distribution agreement by competing with Organo, his former supplier of mushroom-based drinks and products. Organo Gold Int’l, Inc. v. Ventura, 2016 WL 1756636 (W.D. Wash. May 3, 2016). The parties’ agreement included a noncompete provision that prohibited Ventura’s participation in any opportunity involving the sale of mushroom-based products for twelve months following termination. The agreement further prohibited Ventura from soliciting ...

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The United States District Court for the Western District of Missouri recently enforced a post-termination noncompete covenant against a former Alabama tax preparation franchisee and a business operated by the franchisee's spouse based on a theory of successor liability. H&R Block Tax Services, LLC v. Clayton, 2016 WL 1247205 (W.D. Mo. Mar. 24, 2016). Gray Plant Mooty represented the franchisor in this case. Following the termination of his franchise agreement for failure to pay royalties, the franchisee's husband opened a tax return preparation business in close proximity to ...

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In Lawn Doctor, Inc. v. Rizzo, 2016 WL 1445071 (3d Cir. Apr. 13, 2016), the United States Court of Appeals for the Third Circuit upheld an order holding the Rizzos, former franchisees of the Lawn Doctor system, in contempt of a consent injunction that prohibited them from operating a competing business after the termination of their franchise. The contempt finding was based on the Rizzos' transfer of their business to a third party while acting as the third party's lender. The Third Circuit affirmed the district court's finding that the act of providing financing to a competitor was ...

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The United States District Court for the Northern District of New York recently imposed contempt sanctions against a former franchisee after finding the franchisee had willfully violated an earlier injunction requiring her to comply with post-termination covenants against competition and solicitation contained in her franchise agreement. H&R Block Tax Servs. LLC v. Strauss, 2015 U.S. Dist. LEXIS 87668 (N.D.N.Y. July 7, 2015). Gray Plant Mooty represents the franchisor in this case. The franchisee had agreed that, upon termination, she would neither solicit clients to whom ...

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The United States District Court for the Northern District of New York has preliminarily enjoined a former franchisee from operating a competing business in violation of her covenant not to compete with the franchisor. H&R Block Tax Servs., LLC v. Strauss, Case No. 1:15-cv-0085 (N.D.N.Y. Feb. 4, 2015). Gray Plant Mooty represents H&R Block in this case. The franchisee, Strauss, had agreed that upon termination of her franchise agreement she would neither solicit clients to whom her franchise had provided tax return preparation services nor compete with H&R Block in the business of ...

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The United States District Court for the District of Massachusetts granted a franchisor’s motion for a preliminary injunction seeking to prevent a group of holdover franchisees from using its trademarks, but permitted the franchisees to continue operating their business as an unaffiliated convenience store until a full adjudication on the merits. 7-Eleven, Inc. v. Grewal, 2014 U.S. Dist. LEXIS 163712 (D. Mass. Nov. 20, 2014). 7-Eleven terminated the parties’ franchise relationship after an investigation revealed that Grewal had falsified its sales data by incorrectly ...

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A federal district court in New York enforced part of a noncompete covenant that existed between a franchisor and former franchisee, finding some of the provision overly broad and only enforcing the aspects necessary to protect the franchisor's legitimate business interests. Mister Softee, Inc. v. Tsirkos, 2014 U.S. Dist. LEXIS 77434 (S.D.N.Y. June 5, 2014). In moving for a preliminary injunction, Mister Softee sought, among other things, enforcement of covenants that barred former franchisee Tsirkos from competing in former and other franchise territories throughout four ...

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In Anytime Fitness, LLC v. Edinburgh Fitness, LLC, 2014 U.S. Dist. LEXIS 50337 (D. Minn. Apr. 11, 2014), a federal court in Minnesota enjoined a former Anytime Fitness franchisee from violating a franchise agreements’ post-expiration covenant against competition and from using the franchisor’s proprietary customer data. After electing not to renew its franchise agreement, the franchisee had opened a new fitness club at the same location as its former Anytime franchise and used confidential customer data to solicit former Anytime clients. Anytime brought suit for breach of ...

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In H&R Block Tax Services LLC v. Acevedo-López, 2014 U.S. App. LEXIS 2602 (8th Cir. Feb. 12, 2014), the United States Court of Appeals for the Eighth Circuit vacated the order of a district court in Missouri, which had denied a motion by H&R Block for a preliminary injunction prohibiting breach by a former franchisee of his covenants against competition. Shortly thereafter, the district court granted summary judgment to H&R Block on all of the claims and counterclaims in the case, awarding H&R Block approximately $1.5 million in damages, entering a final injunction enforcing the ...

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The United States Court of Appeals for the Eighth Circuit last month upheld a district court’s denial of injunctive relief for a franchisor that had waited too long to enforce a former franchisee’s post-termination covenant against competition. Novus Franchising, Inc. v. Dawson, 2013 U.S. App. LEXIS 16103 (8th Cir. Aug. 5, 2013). The district court subsequently allowed the franchisee’s counterclaims under the Minnesota Franchise Act to proceed. Novus Franchising, Inc. v. Dawson, 2013 U.S. Dist. LEXIS 117717 (D. Minn. Aug. 20, 2013). This case began in 2012, when Novus ...

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A recent case from the Eastern District of Pennsylvania shows the lengths to which courts will go to enforce franchise agreements against personal guarantors and related parties. Tantopia Franchising Co. v. West Coast Tans of PA, LLC, 2013 U.S. Dist. LEXIS 8266 (E.D. Pa. Jan. 22, 2013). The relevant history began in 2002, when Tantopia Franchising Company entered into a franchise agreement with West Coast Tans (WCT) to operate a tanning salon in Philadelphia. Donald and Richard Weiss personally guaranteed WCT’s obligations under that agreement. In 2009, WCT ceased operations. A ...

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In Lawn Doctor, Inc. v. Rizzo, 2012 U.S. Dist. LEXIS 17139 (D.N.J. Dec. 11, 2012), the United States District Court for the District of New Jersey granted Lawn Doctor’s motion for a declaratory judgment enforcing the parties’ settlement agreement and finding that Lawn Doctor’s covenant not to compete was valid and enforceable. Even though the covenant did not specifically prohibit irrigation services, a “competitive business” was defined to include “[a]ny business which operates, or grants franchises or licenses to others to operate, a business for the ...

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In Tutor Time Learning Centers, LLC v. KOG Industries, Inc., 2012 U.S. Dist. LEXIS 162124 (E.D.N.Y. Nov. 13, 2012), the United States District Court for the Eastern District of New York denied Tutor Time’s motion for a preliminary injunction to enforce a posttermination noncompete agreement against its former franchisee. The court began by finding that Tutor Time was not irreparably harmed by potential customer confusion because the former franchisee changed its phone number and sent a letter to all existing customers informing them that it was no longer associated with Tutor ...

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In Curves International, Inc. v. St. Paul Ungewitter, Inc., No. 62-cv-12-6568 (Minn. Dist. Ct. Oct. 17, 2012), Curves successfully enforced a one-year, ten-mile post-term noncompete agreement against a former franchisee whose franchise agreement had expired. (Gray Plant Mooty represented Curves.) The court found that Curves had met its burden of demonstrating that it would be irreparably harmed absent injunctive relief because the former franchisee had converted her Curves operation into a new women’s exercise/fitness facility using Curves equipment and serving ...

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A North Carolina federal court recently held that a franchise is a legitimate interest that warrants protection by a covenant not to compete. Econo-Lube N’ Tune, Inc. v. Orange Racing, LLC, 2012 U.S. Dist. LEXIS 129219 (W.D.N.C. Sept. 10, 2012). The franchisees operated an Econo-Lube franchise and had agreed not to compete or have an interest in any similar business. When the franchisor learned the franchisees had an interest in a competing business, the franchisor served them with a notice of default. The franchisees then abandoned the franchise but began operating the same ...

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In JTH Tax, Inc. v. Noor, 2012 U.S. Dist. LEXIS 138657 (E.D. Va. Sept. 26, 2012), the franchisor filed a motion for contempt against the terminated franchisees for violating a default judgment order that, in part, enjoined the franchisees from operating a tax preparation business in violation of the franchise agreement’s noncompete provision and required the franchisees to return certain information and materials belonging to the franchisor. In support of its motion, the franchisor showed that, among other things, the terminated franchisees were preparing tax returns ...

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In Hamden v. Total Car Franchising Corp., 2012 U.S. Dist. LEXIS 111432 (W.D. Va. Aug. 7, 2012), a Virginia federal district court held that where a franchise agreement expired at the end of its term, the post-termination non-compete clause was unenforceable because the clause only applied in situations where the agreement was terminated prior to expiration. The parties’ franchise agreement expired in May 2011, but the franchisee continued operating as a franchisee because he did not realize the term had ended. After receiving a reminder from the franchisor of his right to renew ...

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In Allegra Network LLC v. Cormack, 2012 U.S. Dist. LEXIS 117014 (E.D. Mich. Aug. 20, 2012), the court granted a preliminary injunction enforcing a post-termination covenant against competition. The franchisor terminated the franchise rights of an Insty-Prints Center based on its failure to pay royalty and advertising fees, report royalty figures, and use only the franchisor’s marks. When the franchisees began operating a competing business in the same location as their terminated franchise, the franchisor sought a preliminary injunction to enforce the noncompetition ...

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The United States District Court for the District of New Jersey also recently refused to grant injunctive relief to enforce a covenant against competition contained in a franchise agreement. In Lawn Doctor, Inc. v. Rizzo, 2012 U.S. Dist. LEXIS 89678 (D.N.J. June 27, 2012), the franchisor sought a preliminary injunction requiring the defendant franchisees to comply with their post-termination obligations. The parties agreed to all the relief sought by Lawn Doctor, except enforcement of the covenant that required the franchisees to refrain from operating a competing business in ...

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A Minnesota federal district court has enjoined a former franchisee’s use of its franchisor’s trademarks and certain proprietary products, but has refused to prevent the defendant from operating a competing business. In Novus Franchising, Inc. v. Dawson, 2012 U.S. Dist. LEXIS 103025 (D. Minn. July 25, 2012), Novus, the franchisor, terminated Dawson’s franchise rights and alleged that Dawson breached that agreement’s post-termination obligations by operating a competitive automotive glass replacement and repair business under the name of CarMike, and by using the ...

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A Pennsylvania district court judge held a former franchisee in contempt for "blatantly violating" the court's injunction order and continuing to operate a competing business after terminabon of a franchise agreement. In Marblelife, Inc. v. Stone Resources, Inc., 2012 U.S. Dist. LEXIS 68223 (E.D. Pa. May 16, 2012), Stone Resources was a Marblelife franchisee in the business of restoring and repairing granite surfaces until the agreement expired in April 2010. The franchisee and its principal agreed that, upon expiration, they would not operate a competing business for two ...

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In Dickey’s Barbecue Restaurants, Inc. v. GEM Investment Group, LLC, 2012 U.S. Dist. LEXIS 54448 (N.D. Tex. Apr. 18, 2012), a federal court in Texas denied a franchisor’s motion for a preliminary injunction to enforce noncompetition covenants. The defendants had signed an agreement with Dickey’s Barbecue to develop three franchised restaurants in the state of Washington. During the construction of their first restaurant, the defendants dropped out of training and established an independent restaurant at their formerly franchised location.

Despite a contractual ...

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In a case litigated by Gray Plant Mooty, the United States District Court for the Western District of North Carolina recently granted a franchisor’s motion for a preliminary injunction to prevent a former franchisee from operating a competing business. In Outdoor Lighting Perspectives Franchising, Inc. v. OLP-Pittsburgh, Inc., 2012 U.S. Dist. LEXIS 53583 (W.D.N.C. Apr. 17, 2012), Outdoor Lighting Perspectives Franchising (“OLP”) sought a preliminary injunction to enforce the covenant against competition in the franchise agreement. The clause prevented the ...

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In Fantastic Sams Salons Corp. v. Maxie Enterprises, Inc. and Paul Rubin, 2012 U.S. Dist. Lexis 8106 (M.D. Ga. Jan. 24, 2012), a former Fantastic Sams franchisee continued to operate a hair salon at its Fantastic Sams location after termination of the franchise agreement. In response to Fantastic Sams’ suit to enforce its noncompete agreement, the franchisee argued that the noncompete should be declared invalid under Georgia law. The clause at issue prohibited the former franchisee from “directly or indirectly participating as an owner, partner, member, director, officer ...

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In Novus Franchising, Inc. v. Livengood, 2012 U.S. Dist. LEXIS 2610 (D. Minn. Jan. 8, 2012), a Minnesota federal court denied the franchisees’ motion to dismiss Novus’ claim for breach of contract based on the franchisees’ continued operation of their business during the post-term noncompete period, failure to pay required fees and royalties, underreporting of revenues, and failure to submit accurate financial information. The dispute arose when Novus learned that the franchisees had underpaid their royalties by roughly $10,000 through the end of the franchise term ...

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In Outdoor Lighting Perspective Franchising, Inc. v. Home Amenities, Inc., et al., 2012 U.S. Dist. LEXIS 5406 (W.D.N.C. Jan. 18, 2012), the United States District Court for the Western District of North Carolina granted Outdoor Lighting Perspectives Franchising, Inc.’s (OLP’s) motion for a preliminary injunction, enjoining a former franchisee from continuing to operate a competing business within its former territory or that of another franchisee for a period of two years. Gray Plant Mooty represented OLP.

The court concluded that a “franchisor’s goodwill and ...

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The United States District Court for the District of New Jersey recently enforced a franchisor’s noncompete agreement in two consolidated cases. In the first case, Jackson Hewitt Inc. v. H.E.A.T. Enterprises, LLC, 2011 U.S. Dist. LEXIS 144759 (D.N.J. Dec. 15, 2011), the court had previously issued an injunction against the corporate defendant and its owner. Jackson Hewitt then asked the court to apply the injunction against two individuals, Elter and Fournier, who were associated with the business but were not signatories to the franchise agreement. Jackson Hewitt alleged ...

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In Sylvan Learning, Inc. v. Learning Solutions, Inc., 2011 U.S. Dist. LEXIS 64492 (S.D. Ala. June 17, 2011), a federal court in Alabama granted in part and denied in part a preliminary injunction against a licensee for continuing to operate business locations following the licensor’s termination of the license agreements. The defendant operated three Sylvan Learning centers under separate license agreements, two in Mississippi and one in Alabama. Richard Blow, a signatory to all the license agreements and partial owner of the defendant entity, was convicted of felony bank ...

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In Victory Lane Quick Oil Change, Inc. v. Darwich, 2011 U.S. Dist. LEXIS 70062 (E.D. Mich. June 29, 2011), a federal court in Michigan granted a franchisor’s motion for a preliminary injunction against its former franchisee for breaching the noncompete provision in the parties’ franchise agreement and violating the Lanham Act. Although the franchisee’s principal argued that he sold his oil change business to his brother, who was now operating it as Saline Quick Lube, the court noted that the franchisee remained the tenant of record on the lease for the premises. As a result, the ...

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In Wakeman v. Aqua2 Acquisition, Inc., 2011 U.S. Dist. LEXIS 47498 (D. Minn. May 3, 2011), in which Gray Plant Mooty represented the franchisor of the AutoQual system, a Minnesota federal court last month denied the franchisee plaintiff’s request to stay the court’s judgment and injunction pending appeal. As reported in Issue 140 of The GPMemorandum, the court in February had confirmed an arbitrator’s award despite a clarification to which Wakeman, a former AutoQual franchisee, objected. Specifically, the court enjoined Wakeman and a defined group of people working in ...

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In Marblelife, Inc. v. Stone Resources, Inc., 2010 U.S. Dist. LEXIS 136041 (E.D. Pa. Dec. 23, 2010), the defendant franchisee chose to let its franchise agreement expire. The franchisee then began operating a competing business in violation of a covenant against competition contained in the franchise agreement, using the franchisor’s confidential business information, trade secrets, trademarks, and exclusive advertising arrangement. The franchisor moved for injunctive relief to prevent trademark infringement and to enforce the two-year post-termination non-compete ...

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A federal magistrate judge recently recommended that an injunction be issued in favor of franchisor Smoothie King Franchises, Inc. enforcing a post-termination covenant not to compete against its former franchisee. Smoothie King Franchises, Inc. v. UKE-MEX Enterprises, Inc., et al., 4:10-CV-01285 (S.D. Tex. Sept. 17, 2010). Gray Plant Mooty represents the franchisor in this matter. Smoothie King is the franchisor of a business offering nutritional drinks and products. Defendant UKE-MEX and its predecessor owned and operated one of Smoothie King’s franchises in Texas ...

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In Coldwell Banker Real Estate, LLC  v. Brian Moses Realty, Inc., 2010 U.S. Dist. LEXIS 93827 (D.N.H. Sept. 8, 2010), a New Hampshire federal court last month granted franchisor Coldwell Banker’s motion for summary judgment on its noncompete claim against a former franchisee, finding that the franchisee had clearly violated the in-term covenant not to compete in its franchise agreement by engaging in a competing Re/Max Properties real estate business. Although the court also granted Coldwell Banker’s motion for summary judgment on all counterclaims, factual disputes ...

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In a case handled by Gray Plant Mooty and first reported in Issue No. 131 of The GPMemorandum after a prior ruling, the court in Bonus of America, Inc. v. Angel Falls Services, LLC, 2010 U.S. Dist. LEXIS 67079 (D. Minn. July 6, 2010),  has now entered a preliminary injunction against a master franchisor and two affiliated parties through which the master franchisor was conducting business,  enjoining them from violating the in term noncompete provisions of the Master Franchisor Agreement (MFA) and from using the franchisor’s name, trademarks, or proprietary materials. The master ...

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In Allegra Network LLC v. Reeder, 2009 WL 3734288 (E.D. Va. Nov. 4, 2009), the franchisor won an injunction preventing trademark infringement, but lost its request to enforce a post-termination non-compete agreement. Allegra is a franchisor of several print and imaging brands. When the franchisees moved their store to a location about 1.5 miles from another Allegra location without written consent, Allegra terminated the franchise based on a clause in the agreement that restricted the franchisees’ ability to operate a store within two miles of another Allegra franchise. The ...

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In Victory Lane Quick Change, Inc. v. Hoss, WL 2461260 (E.D. Mich. Aug. 10, 2009), a court denied a franchisor’s attempt to enforce the covenant against competition contained in the franchise agreement. The court denied the franchisor’s motion for a preliminary injunction because the franchisor had granted another franchise within three miles of the franchisee’s business and because of the nonproprietary nature of the business. 

The franchise agreement in this case granted the franchisee a license to operate a Victory Lane Quick Oil Change Center in Howell, Michigan. The ...

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A Virginia federal court late last month granted an injunction to franchisor Little Caesar against both its former franchisee and a nonsignatory to the franchise agreement, including requiring the third party to stop operating a competing business at the location of the former franchise. The case is Little Caesar Enter., Inc. v. Little Caesar’s, Va., Inc., No. 2:09-cv-00112-JBF-JEB (E.D. Va. Aug. 28, 2009). The defendant was granted a franchise and told, before opening the restaurant, that Little Caesar would not entertain any changes in ownership of the franchise until six ...

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In December 2007, the Sixth Circuit Court of Appeals held that a Michigan district court had improperly denied a franchisor’s request for a preliminary injunction prohibiting its franchisees from competing against the franchisor’s business for a period of two years based upon the franchise agreement’s non-compete clause. Certified Restoration Dry Cleaning Network, L.L.C. v. Tenke Corp., 2007 WL 4372888 (6th Cir. Dec. 17, 2007). The franchisees, citizens of Ohio, had been terminated for failure to pay fees. The franchise agreement contained a post-termination ...

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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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