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Liquidated damages provisions in hotel franchise agreements

  • Roetzel & Andress
  • -
  • USA
  • -
  • August 19 2011

A liquidated damages provision in a franchise agreement is an important tool for a franchisor to ensure that it will be contractually and adequately compensated in the event its franchisee breaches

Burger King franchisees seek declaration of non-liability

  • Shook Hardy & Bacon LLP
  • -
  • USA
  • -
  • October 8 2010

A number of Burger King Corp. franchisees in California have filed a complaint for declaratory relief in federal court, claiming that the company has no basis for demanding that they pay the cost of settlement or its attorney’s fees and costs in a recently settled disability discrimination lawsuit

Restaurant chain founder chooses FLSA exposure over franchise compliance

  • Baker Donelson Bearman Caldwell & Berkowitz PC
  • -
  • USA
  • -
  • August 6 2012

Can a founder of a chain of restaurants be liable to an employee for unpaid wages even though he does not own the restaurant where the employee worked?

Court grants franchisee summary judgment in dispute over franchisor’s attempt to enforce pricing and promotions policy

  • Gray Plant Mooty
  • -
  • USA
  • -
  • August 10 2012

Last month, the United States District Court for the Central District of Illinois granted summary judgment to a franchisee of five Steak N Shake restaurants in a contract dispute over the franchisor’s policy requiring all franchisees to “follow set menu and pricing (with the exception of breakfast items), and to offer all company promotions published.”

Franchisor escapes franchisee food fight

  • Baker Donelson Bearman Caldwell & Berkowitz PC
  • -
  • USA
  • -
  • August 6 2012

After an allegedly racially motivated fight over a free hamburger between a franchisee's employee and his supervisor in which the employee was knocked unconscious, the franchisor, McDonald’s, was sued in U.S. District Court in Memphis along with the franchisee and the supervisor

Pizza system deemed not a trade secret

  • Fox Rothschild LLP
  • -
  • USA
  • -
  • November 29 2012

Franchisor, Little Caesar Enterprises, Inc., recently lost a motion for a temporary restraining order preliminary injunction against a former franchisee after the District Court of South Dakota found that it was unlikely to succeed on its claim that the system for producing "Hot-N-Ready" Pizzas was a "trade secret" under the South Dakota Trade Secrets Act

KFC franchise guarantors not subject to mint julep jurisdiction

  • Baker Donelson Bearman Caldwell & Berkowitz PC
  • -
  • USA
  • -
  • November 2 2012

Franchise agreements are often signed by single purpose entities that are not income-tax-paying entities and that own only the franchised business for a particular location

Recent decisions highlight additional ADA Title III risks faced by franchisors and franchisees

  • Wiley Rein LLP
  • -
  • USA
  • -
  • May 30 2008

In the November 2007 issue of Franchise Alert, we reported on the increase in architectural barrier claims under Title III of the Americans with Disabilities Act (ADA), especially against franchisors and franchisees that operate restaurants, hotels and stores

Gangland judicial opinion is a reminder of liability for franchisees and their franchisors

  • Whiteford Taylor & Preston LLP
  • -
  • USA
  • -
  • December 5 2012

In Ford v. Palmden Restaurants, LLC, the Court of Appeals of California issued a strong reminder to both restaurant franchisees and their franchisors of their potential liability for criminal conduct that takes place on a restaurant’s premises

Fighting fire with fire: federal court orders cancellation of Firehouse Subs’ trademark after jury finds fraud on the PTO

  • Baker Donelson Bearman Caldwell & Berkowitz PC
  • -
  • USA
  • -
  • December 8 2011

The Federal District Court for the District of South Carolina recently upheld a jury verdict against Firehouse Restaurant Group, Inc. (FRG), the owner of the “Firehouse Subs” sandwich chain, creating potentially significant challenges for the franchise system and providing a cautionary tale to franchisors and other federal trademark applicants

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