California Lawyers Association

Business Law Franchise Law Committee

Updates from the BLS Franchise Law Committee

The California Court of Appeal recently held that a patron of a Massage Envy franchise in San Rafael had not entered into a contract with franchisor Massage Envy (“MEF”) when assent to the contractual agreement was hidden in the franchisee’s General Consent electronic document.  Doe v. Massage Envy Franchising, No. A161688, 2022 Cal. App. LEXIS 1066 (Ct. App. Dec. 29, 2022) Read more
In a wage-and-hour misclassification action, the District Court, Judge Alsup, granted in part plaintiffs’ motion for class certification and motion for summary judgment on certain certified claims, finding Jan-Pro franchisees to be employees who had been misclassified as independent contractors. Read more
The Court granted in part and denied in part cross-motions for summary judgment between plaintiff-franchisee Full Tilt Boogie, LLC (“Full Tilt”), and defendants/franchisors KEP Fortune, LLC (“KEP”), Jeroen Bik, and Miray Bik (“the Biks”). Read more
The Court largely denied franchisor plaintiff and counter-defendant ReBath LLC’s motion to exclude the expert testimony of franchisee defendant and counter-plaintiff HD Solutions, LLC’s (“HDS”) damages expert. Read more
The Court denied plaintiff franchisor Kahala Franchising, LLC’s (“Kahala”) motion for preliminary injunction against defendant holdover Pinkberry frozen yogurt franchisee Real Faith, LLC (“Real Faith”) primarily on the basis that Real Faith overcame Kahala’s rebuttable presumption of irreparable harm. Read more
The Court issued its findings of fact and conclusions of law after a nine-day bench trial. Plaintiff and franchisee Show Me Hospitality, LLC (“Show Me”) filed suit against franchisor and defendant Tim Hortons USA, Inc. Read more
In this opinion, the District Court denied franchisor defendants’ motion for judgment on the pleadings on plaintiff’s labor law class action on behalf of herself and other similarly situated persons working as non-exempt servers, waiters, bartenders, and other related positions at Embassy Suites Hotels in New York state. Read more
The North American Securities Administrators Association, Inc. (“NASAA”) is seeking public comment on a proposed NASAA Statement of Policy Regarding the Use of Franchise Questionnaires and Acknowledgments. Read more
The District Court largely adopted the Magistrate’s Report and Recommendation concerning cross-motions for summary judgment in which the Magistrate denied franchisee plaintiffs’ motions in their entirety and denied in part and granted in part franchisor defendants’ motions. Read more
The District Court denied in part and granted in part cross-motions for summary judgment. Read more

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