When entering into a trademark license agreement most trademark owners do not consider the possibility that their agreement actually may be a franchise, which would subject them to.
In the recent case of Good Times Restaurants, LLC v. Shindig Hospitality Group, the licensee, Shindig Hospitality, filed a counter claim alleging fraud and misrepresentation, which the licensor sought to dismiss. The court was not persuaded by the licensor’s arguments.
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In Patel v. 7-Eleven Inc., 7-Eleven franchisees asserted a putative class action claiming that 7-Eleven misclassified them as independent contractors and not employees, in violation of Massachusetts law.