The Franchise Memorandum

A federal court in Michigan recently granted several related franchisors’ motions to dismiss a franchisee’s claims for violations of the Michigan Franchise Investment law. Benjamin Franklin Franchising SPE LLC v. David Michael Plumbing Inc., 2024 WL 3997056 (E.D. Mich. Aug. 29, 2024).

A federal court in Michigan has granted a franchisor’s motion for preliminary injunction against former franchisees for violating the franchise agreements’ post-termination noncompete provisions. 1-800 Water Damage Int’l LLC v. Restoration RX, LLC, 2024 WL 3623508 (July 31, 2024).

An Ohio appellate court, reversing a summary judgment decision, recently held that the “full-time efforts” section of an Area Representative Agreement was applicable only to the area representative entity and not the individual owners. American Eagle Investments, Inc. v. Marco’s Franchising, LLC, 2024 WL 3738750 (Ohio App. Aug. 9, 2024).

A state appellate court in Pennsylvania recently affirmed a trial court’s summary judgment ruling addressing a franchisor’s claims for indemnification in a personal injury dispute. Sunoco (R&M), LLC v. Pa. Nat'l Mut. Cas. Ins. Co., --- A.3d ---, 2024 WL 3688402 (Pa. Super. Ct. Aug. 7, 2024).

A federal court in Virginia recently ruled that it had federal question subject matter jurisdiction over a Defend Trade Secrets Act (DTSA) claim, rejecting Defendants’ argument that a foreign bankruptcy proceeding stayed the DTSA claim and deprived the court of jurisdiction. JTH Tax LLC, d/b/a Liberty Tax Service v. Lowensky Cortorreal, 2024 WL 3928884 (E.D. Va. Aug. 23, 2024).

A federal court in Washington recently granted a motion brought by franchisor Nurse Next Door Home Healthcare Services, Inc. (NND) to compel arbitration of a Florida-based franchisee’s claims. Nurse Next Door Home Healthcare Servs. (USA), Inc. v. Sipp, 2024 WL 3859704 (W.D. Wash. Aug. 19, 2024).