Federal Court

Pinnacle Foods of California, LLC v. Popeyes Louisiana Kitchen, Inc.: Court Rules Development Agreement does not Qualify as a Franchise Under the CFRA

Apr 21, 2021Legal AlertsCalifornia, CFRA, Development Agreement, Federal Court, Forum Selection Clause

Executive Summary: In an unpublished decision, Judge Wilson of the United States District Court for the Central District of California granted a motion to transfer to Florida, rejected a franchisee’s arguments regarding the applicability of California’s forum selection clause rule, and ruled that a development agreement does not qualify as a franchise under the CFRA. Citation: Pinnacle Foods of California, […]

Krispy Krunchy Foods LLC v. Jenna Marketing LLC: Louisiana District Court Denies Motion to Transfer by California “Member” Based on Post-COVID-19 Technological Advances

Apr 21, 2021Legal AlertsCalifornia, CFIL, Federal Court, Forum Selection Clause

Executive Summary: In an unpublished decision, Magistrate Judge Hanna of the United States District Court for the Western District of Louisiana ruled against a motion to transfer to California made by a California member / franchisee even where there was no forum selection clause. Citation: Krispy Krunchy Foods LLC v. Jenna Marketing LLC, 2021 WL 1916151 (W.D. La. Apr. 16, […]

Jack in the Box Inc. v. San-Tex Restaurants, Inc.: A Lesson in how Doing Everything Right is Sometimes Not Enough to Prevent a Facially Frivolous Lawsuit

Jan 14, 2021Legal AlertsCFIL, CFRA, CUPA, Federal Court, Jurisdiction, Texas

Executive Summary: In an unpublished decision, Judge Rodriguez of the United States District Court for the Western District of Texas denied Jack-in-the-Box’s motion to dismiss counterclaims brought against it by a franchisee that had been in default for more than two years, was terminated, and continued to operate the franchise after termination. Citation: Jack in the Box Inc. v. San-Tex […]

Patel v. 7-Eleven, Inc.: Federal Court Finds that FTC Franchise Rule Preempts State ABC Independent Contractor Test

Sep 10, 2020Legal AlertsABC Test, Employment Law, Federal Court, Independent Contractor

Executive Summary: In a published decision, Judge Gorton of United States District Court for the District of Massachusetts issued a decision finding that 7-Eleven franchisees claims that they were employees of 7-Eleven corporate pursuant to Massachusetts ABC Test was preempted by the Federal Trade Commission’s Franchise Rule and, therefore, the ABC Test was inapplicable to the franchise industry. Citation: Patel v. 7-Eleven, […]

T.A.W. Performance, LLC v. Brembo, S.p.A.: Court of Appeal Provides Alternative Approach to Analyzing Jurisdictional Disputes by a Purported California Franchisee

Aug 17, 2020Legal AlertsCFIL, Federal Court

Executive Summary: In a partially published decision, the California Court of Appeal, First District, Division 3, found that it lacked specific jurisdiction over a purported California franchisee without addressing if the CFIL governed their relationship or if the CFIL voided its forum selection clause. Citation: T.A.W. Performance, LLC v. Brembo, S.p.A., 53 Cal.App.5th 632 (2020). Relevant Background: Defendant Brembo, S.p.A. (“Defendant”) […]

Esguerra-Aguilar, Inc. v. Shapes Franchising, LLC: Court Finds Incorporation of Arbitration Rules Allows Arbitrator to Determine Arbitrability of Dispute

Jul 9, 2020Legal AlertsCFIL, Federal Court

Executive Summary: In an unreported decision, Judge Freeman of the United States District Court for the Northern District of California granted a franchisor’s motion to stay proceedings pending arbitration finding that the parties delegated the question of arbitrability to the arbitrator to decide by incorporating, by reference, the AAA and NAF arbitration rules. Citation: Esguerra-Aguilar, Inc. v. Shapes Franchising, LLC, 2020 […]