A federal court in Minnesota partially granted a franchisor’s motion to dismiss a franchisee’s counterclaims, dismissing claims arising from the franchise agreement. Jack & Joe’s Franchising, Inc. v. Bernadin, 2026 WL 2209840 (D. Minn. July 31, 2026). In July 2025, Jack & Joe’s Franchising, Inc. and Jack & Joe’s Management Company (together, Squeegee Squad) sued EB Window Cleaning LLC and its owner, Eric Bernadin, alleging they materially breached the parties’ franchise agreement and defamed Squeegee Squad. In March 2026 the court granted Squeegee Squad’s motion for a preliminary injunction enjoining EB Window Cleaning and Bernadin, individually, from (i) violating the post-termination noncompete provision, (ii) defaming Squeegee Squad, or (iii) using Squeegee Squad’s protected trademarks and requiring EB Window Cleaning and Bernadin to fulfill their post-termination obligations. In April 2026, following the court’s issuance of the preliminary injunction, Bernadin answered individually, asserting four counterclaims: breach of contract, wrongful termination, interference with business relationships, and unjust enrichment. Squeegee Squad moved to dismiss the counterclaims.
The court granted Squeegee Squad’s motion in part. It first dismissed Bernadin’s breach of contract and wrongful termination claims, concluding that Bernadin did not identify specific agreement terms that Squeegee Squad allegedly breached, explain how Squeegee Squad breached those terms, or allege his substantial performance under the agreement. The court next dismissed Bernadin’s interference with business relationships claim because Bernadin did not describe the business relationships at issue or allege how Squeegee Squad’s conduct wrongfully disrupted those business relationships. However, the court allowed Bernadin’s unjust enrichment claim to proceed after concluding that Bernadin may plead an unjust enrichment claim in the alternative even when an express contract may ultimately govern. Lathrop GPM represented Jack & Joe’s Franchising, Inc. and Jack & Joe’s Management Company in this action.