Joint Employer Doctrine Clarified by Court of Appeals

Regulars to this blog will observe that the control issue within franchising is a running theme and involves the Joint Employer Doctrine, which I discussed and updated in previous articles. Boiled down to its essence, the doctrine holds that if a Franchisor exerts...

Court Denies Dunkin’s Cross-Default Termination Remedy

In 2017, I briefed a decision from the same action. See, 3rd Circuit Upholds Grant of Summary Judgment in Favor of Franchise Cancellation Due to Fraud by the Franchisee In the previously reported summary judgment matter, the 3rd Circuit upheld the District Court’s...

Denied Franchise Applicant was Not Required to Arbitrate

Plaintiff filed an online application with Subway’s seeking to become a Franchisee. The application included the following term: “I agree that the arbitration will be administered by either the American Arbitration Association or its successor (‘AAA’) or the American...

Federal Rule 11 Sanctions Levied in Patent Action

This decision serves as a cautionary tale for franchisors whom act aggressively and rashly in the protection of its IP. Here, Sub Zero sued a Louisville, Kentucky, ice cream business (Frank Nye Consulting, LLC d/b/a Arctic Scoop) alleging that the defendant company...

When the Franchisee is Required to Upgrade POS Tech

This decision arises from a dispute centered upon the Franchisee’s refusal to upgrade a Point of Sale (“POS”) system, claiming that the Franchisor’s POS replacement was inferior and not suited to the chocolatier’s shop, nor did it meet the Franchisor’s own...