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Franchise 101: Breaking Up Is Hard to Do; and Don’t Mess with Forum Selection Clauses
Franchisor 101: Breaking Up Is Hard to Do A federal district court in Nevada partly denied a franchisor’s summary judgment motion on claims brought by a franchisee. IJL Midwest entered into several franchise agreements with
Franchise 101: Call Option Claim Bends; and Small Business on Main Street
Franchisor 101: Call Option Claim Bends A Delaware court found a yoga studio franchisee was entitled to an order requiring the franchisor to buy all of the franchisee’s yoga studios in six states. The court
Franchise 101: ADA Claim is (Not) Under Control; and Docked Injunction
Franchisor 101: ADA Claim Is (Not) Under Control A deaf customer brought an Americans with Disability Act (“ADA”) suit against Yum! Brands, Inc. (“Yum!”), parent company of KFC, Pizza Hut, Taco Bell and The Habit
Franchise 101: Preemption Preempted; and Kentucky Fried Impact Study
Franchisor 101: Preemption Preempted Patel v. 7-Eleven, a case in Massachusetts, has been closely watched since the ABC test took hold of franchise relationships in employee misclassification cases across the country. A putative class of
Franchise 101: No Tax on Renewals; and Franchisor’s Tough TRO Mountain
Franchisor 101: No Tax on Renewals A federal court in Virginia denied tax franchisor, Liberty Tax’s, motion to dismiss complaints by two of its area developers (“ADs”). The ADs claimed Liberty Tax breached their contract
Franchise 101: Court Delivers for Pizza Franchisor; and Great Lakes Forum Selection Dispute
Franchisor 101: Court Delivers for Pizza Franchisor A Texas appeals court affirmed a lower court judgment in favor of Pizza Hut and its franchisee for claims of an alleged sexual assault by a delivery driver.
Franchise 101: Waive Before Checkout; and No Shaking Franchisor’s TRO
FRANCHISOR 101: Waive Before Check Out A Georgia district court declined to dismiss a breach of contract case by a hotel franchisor against a franchisee. The court rejected the franchisee’s argument that the franchisor waived
Franchise 101: Inhospitable Forum Selection Clause; and Strong Releases Protect Fitness Franchisor
FRANCHISOR 101: Inhospitable Forum Selection Clause A hotel franchisee brought a class action lawsuit in Louisiana federal court on behalf of Louisiana franchisees. The franchisor moved to transfer the action to Georgia, based on the
Franchise 101: A Convenient Truth; and Jani-King Franchisees Wear Many Crowns
Franchisor 101: A Convenient Truth In 2017, four former franchisees brought a class action in California, claiming 7-Eleven owed them unreimbursed expenses. The ex-franchisees claimed they were employees, not independent contractors of 7-Eleven. The court
Franchise 101: Pizza Termination in 30 Days or Less; and Match-Taker
Franchisor 101: Pizza Termination in 30 Days or Less An area developer entered into three agreements with a pizza franchisor and developed 50 franchises in Texas. The franchisor, Pizza Inn, Inc., tried to terminate all