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The Franchise Memorandum

The Franchise Memorandum

Posts in Statute of Limitations.

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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The U.S. District Court for the Western District of Louisiana has held that a wholesale distributor’s claims against R.J. Reynolds (“RJR”) under the Louisiana Unfair Trade Practices Act (“LUPTA”) were perempted and time-barred. Caldwell Wholesale Co., L.L.C. v. R.J. Reynolds Tobacco Co., WL 2209165 (W.D. La. May 11, 2018). The wholesaler, Caldwell, alleged that RJR violated the LUPTA by terminating in 2004 Caldwell’s status as a direct purchaser of RJR’s tobacco products (thereby depriving Caldwell of favorable pricing incentives) and denying Caldwell’s ...

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The North Carolina Court of Appeals affirmed a lower court’s dismissal of claims against Family Fare, LLC for violations of the North Carolina Unfair and Deceptive Trade Practices Act and for rescission, fraud, misrepresentation, and breach of the duty of good faith and fair dealing on the grounds that the one-year contractual limitations period contained in the franchise agreements at issue expired prior to the franchisees’ filing suit. Sanghrajka v. Family Fare, LLC, 822 S.E.2d 789 (N.C. Ct. App. 2019). Sanghrajka operated a convenience store under the ownership and ...

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A Wisconsin federal court declined to reach a distributor’s claims that it had entered into an accidental franchisor-franchisee relationship with a manufacturer, instead dismissing the case by applying the limitations period dictated by the parties’ contract. Faxon Sales, Inc. v. U-Line Corp., 2017 WL 4990617 (E.D. Wis. Oct. 31, 2017). The case arose when manufacturer U-Line unilaterally terminated its contract with distributor Faxon, ending a twenty-five-year relationship. The contract disavowed the formation of a franchise, permitted termination without cause ...

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In Western Sizzler Corp. v. Pinnacle Business Partners, LLC, 2011 U.S. Dist. LEXIS 135353 (M.D. Fla. Nov. 23, 2011), the court awarded a partial summary judgment in favor of the defendant, Pinnacle, which operates a “Sizzlin Grill” in a former franchise location of the Western Sizzlin® franchise system. The location displayed the mark Western Sizzlin from 1995 to 2004, during which time it operated as a licensed franchise location. In 2005, when Pinnacle took over the location, the restaurant was operated under the mark Sizzlin Grill. The franchisor, Western Sizzler, and ...

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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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