Filed in the Southern District of New York, the ongoing case of Cordova v. SCCF, Inc. has interesting implications for restaurant franchisors and franchisees. In the class action lawsuit, the plaintiff employees were delivery persons, stock persons and cleaners at franchise locations owned by individual defendants. The plaintiffs alleged that the defendant franchisor, SCCF, Inc. …
The issue of whether a party waives its right to arbitrate by filing a lawsuit has been addressed by The United States District Court for the District of New Hampshire in Pla-Fit Franchise, LLC. V. Patricko, Inc., 2014 WL 2106555 (D. N.H. May 20, 2014). The case is noteworthy for franchisors or franchisees who wish to file …
A case was recently decided in the Illinois Appellate Court, a mid-level appellate court in that state, which has interesting implications for franchisees and franchisors in that jurisdiction and provides some food for thought in analyzing these issues in other jurisdictions. In Avon Hardware Co. v. Ace Hardware Corp, the court held that franchisors are not …
Representations, Statements of Fact and Statements of Opinion Read More »
Franchisee’s Lawsuit against Franchisor Survives Motion to Dismiss. When drafting a franchise agreement, franchisors typically seek to reserve the right to exercise broad discretion in their role in overseeing the franchise. A recent case (Wojcik v. InterArch, Inc., 2013 WL 5904996 (N.D.Ill. November 4, 2013)) highlights how this may open the franchisor to liability, as …
In a recent article appearing on Yahoo! (The Amazing Facts About Domino’s Dough), it was reported that more than half of Domino’s annual revenues are derived from the supply of ingredients and goods to its restaurants, the majority of which are franchised. This model varies from the model utilized by other large restaurant franchisors (McDonalds, …
Anyone who opens a business here in New York or anyplace else will likely encounter a legal dispute at some point or another. Franchise disputes tend to involve disclosure or contract issues, or an actual or perceived failure of a franchisor to properly support a franchisee. Quiznos is currently facing at least 10 lawsuits from …
Quiznos Franchisees Accuse Franchisor of Fraud, Misdealing Read More »
We have written before about franchisors’ bankruptcies. This piece will examine one aspect of those events. We will first offer a brief overview for franchisees and then lay out more groundwork for attorneys who may be interested. If you are a franchisee, you have an number of concerns, revolving around the rejection (or not) of your …
Come join us at the International Franchise Expo on June 15, 16 and 17 at the Javits Center in New York City. Einbinder & Dunn will be exhibiting at the IFE, which is the largest franchise expo to be held in the United States. The IFE provides opportunities to meet representatives from hundreds of proven …
International Franchise Expo & Event for Veterans Read More »
We recently wrote in this blog on the development of “fair franchising acts” in a number of states, statutory alterations of franchise law that could dramatically rearrange how the franchisor-franchisee relationship has historically worked. We ran across a piece by our colleague David Kaufman in the April 24 New York Law Journal which concerned a recently introduced …
Michael Einbinder of this firm recently argued an appeal in the United States Court of Appeals for the Second Circuit for a matter involving the enforcement of a non-competition covenant by our clients, Singas Famous Pizza Brand Corp. and Singas Famous Pizza & Restaurant Corp., which operate or franchise Singas Famous Pizza restaurants. The United …
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