April 26, 2012
By Shane D. Gosdis*
We first posted about Capriotti’s lawsuit back in February. Since then it looks like the parties have briefed and/or argued Capriotti’s motion for preliminary injunction. And it also looks like the defendant franchisee, Taylor Family Holdings, Inc. filed a motion to dismiss for lack of jurisdiction or venue.
Yesterday, the Delaware District Court denied Capriotti’s motion for preliminary injunction (without prejudice). It also denied the franchisee’s motion to dismiss, but did grant the its motion to transfer to the District of Nevada. Vegas baby! Continued…
Posted in Motion to Transfer, Uncategorized.
Tagged with Capriotti's.
April 23, 2012
By Shane D. Gosdis*
The Eighth Circuit Court of Appeals recently weighed in on Missouri’s franchise law as applied to liquor supplier-wholesaler relationships.
MoBev Beverage Company (”MoBev”) is a wholesale distributor of spirits, wines, beers, juices, and sodas in Missouri. Shelton Brothers, Inc. (”Shelton”) is a Massachusetts supplier of artisanal beers from around the world. In 2004, MoBev and Shelton entered into an oral agreement whereby MoBev could purchase beer from Shelton. MoBev was not required to order any particular amount of beer and Shelton was not required to supply any particular amount of beer.
MoBev placed orders with Shelton from 2006 through 2009. Continued…
Posted in Franchisee Lawsuit, Missouri Franchise Law.
April 13, 2012
By Shane D. Gosdis*
Kumon North America, Inc. (”Kumon”) recently settled a case with its former franchisee, Maria Wachtel (”Wachtel”). Kumon franchises math and reading centers, which use a proprietary system of worksheets for particular grade levels. In 2002, Wachtel bought a Kumon franchise in upstate New York. After her franchise agreement expired in 2009, Wachtel continued to operate her center in cooperation with Kumon. In October 2010, the parties executed a five year renewal agreement for the franchise.
Less than one year later, however, Kumon issued a termination notice to Wachtel. Continued…
Posted in Breach of Contract, Covenant of Good Faith and Fair Dealing, Franchisee Lawsuit, Royalty Fees, Settlement Agreement, Termination.
Tagged with Kumon.
April 11, 2012
By Shane D. Gosdis*
Some very interesting judgments coming out against AABB Fitness Holdings, Inc. (which we understand to be the entity franchising Countours Express womens’ fitness centers). Judge Colleen Dolan in Missouri state court recently issued a number of judgments hammering the franchisor. You can see them here, here, here, here, here, here, here, here, and here. Continued…
Posted in Franchisee Lawsuit, Judgment.
April 4, 2012
By Shane D. Gosdis*
This one is going to get ugly. Two weeks ago, forty-three (43) franchisees of BP West Coast Products, LLC (”BP”) filed a complaint against the franchisor in the United States District Court for the Central District of California, alleging that BP improperly terminated their franchise agreements under the Petroleum Marketing Practices Act (”PMPA”). The complaint also names Thrifty Oil Co. (”Thrifty”) as a defendant. News reports claim that the franchisees seek $1 billion in damages (although the complaint is silent as to the amount damages).
But we are getting ahead of ourselves. Continued…
Posted in Breach of Contract, California Franchise Investment Law, Franchisee Training, Fraud, Injunctive Relief, Petroleum Marketing Practices Act, Termination.
Tagged with BP.
