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The Franchise Memorandum - Issue # 266 | Lathrop GPM


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Welcome to The Franchise Memorandum by Lathrop GPM. Below are summaries of recent legal developments of interest to franchisors.
Post-Termination Injunction: Noncompete Covenants -
California Federal Court Enforces Noncompete Against Former Franchisee -
A federal court in California granted a franchisor’s motion for a preliminary injunction against a former franchisee alleged to have misappropriated trade secrets and breached a noncompetition provision related to the continued operation of a formerly franchised restaurant. Bambu Franchising, LLC v. Nguyen, 2021 WL 1839664 (N.D. Cal. May 7, 2021). Bambu licenses the operation of restaurants that sell Vietnamese beverages utilizing confidential recipes. After the sale of Bambu to the current owner, the original owner, Jenny Nguyen and her company Bambu Delight Hostetter, Inc., continued to operate a Bambu location under the terms of a franchise agreeme ....

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The Franchise Memorandum - Issue # 264 (Distribution Issue) | Lathrop GPM


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Welcome to The Franchise Memorandum by Lathrop GPM. Periodically, The Franchise Memorandum focuses on topics primarily of interest to companies that use distributors and dealers rather than manage a business format franchise system. The distribution-related topics in this issue include terminations, contracts, arbitration, and fiduciary duties.
Please see full Newsletter below for more information.
1 | The Franchise Memorandum by Lathrop GPM To: Our Franchise and Distribution Clients and Friends From: Lathrop GPM’s Franchise and Distribution Practice Group Maisa Jean Frank, Editor of The Franchise Memorandum by Lathrop GPM Richard C. Landon, Editor of The Franchise Memorandum by Lathrop GPM Date: April 8, 2021 Issue # 264 (Distribution Issue) Welcome to The Franchise Memorandum by Lathrop GPM. Periodically, The Franchise Memorandum focuses on topics primarily of interest to companies that use distributo ....

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The Franchise Memorandum - Issue # 261 | Lathrop GPM


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Welcome to The Franchise Memorandum by Lathrop GPM. Below are summaries of recent legal developments of interest to franchisors.
Fifth Circuit Reverses Trial Court’s Excusal of Area Representative’s Tardy Renewal Notice -
The Fifth Circuit Court of Appeals has reversed a Texas court’s ruling excusing an area representative’s untimely renewal notice and rendered judgment for the franchisor. Pizza Inn, Inc. v. Clairday, 979 F.3d 1064 (5th Cir. 2020). Clairday and Pizza Inn were parties to two area development agreements under which Clairday held two five-year options to renew. Clairday failed to timely notify Pizza Inn of his intent to exercise the second renewal option. Pizza Inn did not honor the tardy notice of renewal and did not renew. A jury awarded damages after finding that Pizza Inn had breached the agreements. Determining that the notice of renewal was sufficiently timely under the doctrine ....

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