NJ Forum Selection Clause Enforced Over CA Law

Will New Jersey-based Franchisor’s forum selection clauses be enforced over the California Franchise Relations Act (“CAFRA”) and Franchise Investment Law (“CFIL”)? According to the Federal District Court, yes. Alleged Breach of Franchise Agreement This dispute arose...

A Limit to Franchisor’s Permanent Restraints

To what extent will a Court allow permanent restraints when a Franchisee clearly violates the terms of the franchise agreement? In this decision, the Court addressed a default judgment motion filed by the Franchisor against a Quiznos Franchisee, which had terminated...

Hospitality Franchisor’s Agency Defense Rejected

This decision underscores the inherent problem with using the franchise business model in the hospitality industry. The hospitality Franchisor typically sets very high standards of service for the Franchisee, so as to protect its brand in a very competitive market....

Franchisor Not Responsible for Rogue Salesman

Plaintiffs, Franchisee of Retrofitness, having a gym facility in New Jersey, were persuaded by a salesman for the Franchisor to invest in an established Retrofitness franchise in Florida. The salesman first met the Plaintiffs when they inquired about a Retrofitness...

Federal District Court Dismisses Lanham Act Claims

Licensor (and a Franchisee) of the “Tony Luke’s” mark filed a breach of contract action in the New Jersey Superior Court. Franchisor/Licensee then filed a suit in the federal district court alleging trademark and unfair competition claims under the Lanham Act, 15...