Craig R. Tractenberg

2 months ago | jdsupra.com | Craig R. Tractenberg

Deciding whether to choose state or federal court can be outcome determinative. This is particularly important in deciding to remove a case from state to federal court. Some state franchise statutes clearly allow a court to enjoin threatened or actual violations of the franchisee protective statutes. Federal courts, however, answer to Congress, and under the Federal Rules of Civil Procedure, may impose a higher bar to granting injunctions.

2 months ago | openlegalblogarchive.org | Craig R. Tractenberg

Deciding whether to choose state or federal court can be outcome determinative. This is particularly important in deciding to remove a case from state to federal court. Some state franchise statutes clearly allow a court to enjoin threatened or actual violations of the franchisee protective statutes. Federal courts, however, answer to Congress, and under the Federal Rules of Civil Procedure, may impose a higher bar to granting injunctions.

Nov 19, 2024 | law.com | Craig R. Tractenberg

When franchisees choose to financially reorganize under the Bankruptcy Code, they may be the right size to choose to reorganize under subchapter V of Chapter 11. Subchapter V proceedings are simpler, more streamlined and less expensive than a traditional Chapter 11 and is ideal to allow the self-employed to revitalize their small business. Where the franchisor and the franchisee cannot reconcile, subchapter V may provide the franchisee with breathing room and leverage to be revitalized.

Jul 19, 2024 | law.com | Craig R. Tractenberg

The Federal Trade Commission recently issued a policy statement regarding the franchise industry. The FTC is charged with protecting franchisees from unfair methods of competition and unfair and deceptive practices. The policy statement from the commission addresses restrictions on the ability to report and collect information about potential law violations. The FTC staff also issued guidance about the charging of fees not disclosed when a franchisee purchases a franchise.

Jun 14, 2024 | law.com | Craig R. Tractenberg

The district court referred to it as “gamesmanship.” That characterization may be an understatement given the position of the franchisee’s counsel in Ice Rak v. Rita’s Franchise, No. 8:23-cv-2659 (M.D. Fla., Mar. 14, 2024). Ultimately, the case was stayed pending arbitration over termination of the franchise, even though Ice Rak was not a signatory to the franchise agreement.