Cases filed in the Federal Courts over the last two weeks involving franchisees and franchisors focus on termination and non-renewal. Jersey Mike’s Franchise System, a submarine sandwich franchisor has sued Michael and Billie Snyder for trademark infringement and breach of a non-compete after terminating their franchise because the franchisee continued to operate under the same name and marks.
Moran Industries, the franchisor of Mr. Transmission, has sued a former franchisee in Chattanooga and his son for continuing to operate after termination. The counts for trademark infringement have a twist—the franchisor alleges that the franchisee’s son is using the trademark through a Yahoo.com local advertising program and a website link in the business listing that included “Mr. Transmission.”
Electra Inc., an Arkansas distributor of electrical components sued its supplier, Thomas & Betts Corp., in state court in Arkansas for wrongful termination in violation of Arkansas’s franchise law. Electra is seeking damages for loss of business expectancy, lost profits and consequential damages, plus repurchase of inventory.
A franchisee of United Imaging Partners, a chain of retail ultrasound screening locations, has sued its franchisor in Austin, Texas for encroachment by placing another franchisee in its territory.
In New York, a local yacht store sued its Italian supplier for breach of contract, including encroachment, allowing another dealership to engage in deceptive marketing and selling to the other dealer on more favorable terms.
These cases are just another example of why it’s important to have a good franchise lawyer on your side. If you want a team of lawyers that are dedicated to getting you the representation you deserve, contact Garner, Ginsburg & Johnsen today!