#franchisecases

The United States District Court for the Western District of Pennsylvania has denied a motion by Quizno’s to dismiss certain claims of franchisees of the system that the sandwich shop franchisor fraudulently induced execution of the plaintiffs’ franchise agreements, notwithstanding that the franchisees also executed and delivered to the franchisor written disclaimers of reliance on …

Quizno’s Has Gotten Its Buns Toasted Again by Aggrieved Franchisees Read More »

The U.S. District Court in Colorado ruled in April in a case involving Quiznos that a provision in a franchise agreement that bars franchisees from banding together in class-action lawsuits is enforceable. The decision is seen as affecting other class-action lawsuits against Quiznos in Wisconsin, Illinois and Pennsylvania and may serve as a precedent discouraging …

Franchisee Class Actions Read More »

Franchisors and franchisees each have a vested interest in determining the prices of the goods or services being sold at franchised locations. These concerns and the manner in which they are addressed frequently bring the franchise world into contact with the labyrinthian world of legal antitrust restrictions. One basic form of price control is minimum …

Vertical Minimum Price Agreements Read More »

Not all franchises succeed and some industries are inherently riskier than others. Perhaps none is more risky than start-up restaurants. Although the risks and obstacles to success in these types of ventures are well known, it is human nature to look for someone (other than yourself) to blame when failure occurs. In the franchising universe, …

Franchisor Liability When a Franchisee Fails Read More »

A recent news item reported that the Burger King franchisor entered into a multi-million dollar settlement for a personal injury suit. Why was the Burger King franchisor ultimately liable for an accident that took place on the premises of one of its franchisees? The legal principles affecting that question should be of great concern to any franchisor. …

Franchisor Vicarious Liability Read More »

When a franchisor sues a franchisee to obtain judicial blessing of a notice of default and termination—on the franchisor’s own initiative, or because the franchisee challenges the validity of the termination—typically the franchisor will include a cause of action for trademark infringement and move early, perhaps immediately, for a preliminary injunction enjoining the franchisee from …

Dollars to Donuts: the Dark Side of Trademark Injunctions in Franchise Action Read More »

We noted in our first blog that both the business and the law of franchising are rapidly developing. One of our aims in this blog is to assist interested parties in staying abreast of those developments, whether they be attorneys, franchisors, franchisees or others working with them. Our August 12 blog discussed a significant case for …

Franchisors’ Rights Read More »

Periodically we will examine recent decisions and statutory developments that relate to the relationships of franchisors and franchisees. The following is a developing case of significance. Unless the Court of Appeals rules otherwise–and whether the high court of New York State will even hear the issue remains to be seen–a franchisor may not employ a …

Rights of Franchisees Read More »