Federal Court Says No California Franchise Law Violations By TroyGould Client Poké Bar Dice & Mix
Los Angeles – (October 4, 2022) – TroyGould is pleased to announce that a team of litigators obtained summary judgment of four Georgia franchisees’ counterclaims against client JB Brothers, Inc., the owner and franchisor of the “Poké Bar Dice & Mix” global restaurant brand. This ruling clears the way for JB Brothers to pursue its own claims against the franchisees at trial.
The TroyGould team achieved this victory just one year after taking over the matter, which at the time consisted of multiple lawsuits pending in different courts. After consolidating the cases into a single proceeding in federal court, the TroyGould team filed a motion for summary judgment on the franchisees’ counterclaims for alleged violations of the California Franchise Investment Law (“CFIL”), alleged violations of California’s Unfair Competition Law, fraud, and unjust enrichment. The counterclaims were based on JB Brothers’ alleged practices in the marketing and sale of certain franchise locations in Georgia. The Court granted the motion as to the CFIL counterclaim on the ground that JB Brothers was exempt from the CFIL’s registration requirement, which does not apply to franchises sold and operated entirely outside California, and that the counterclaim was barred by the CFIL’s statute of limitations. The Court also held that the CFIL preempted the remaining counterclaims, which were effectively duplicative of the alleged CFIL violations.
The litigation team consisted of attorneys Amy Nashon and Benjamin Clements.
Celebrating 50 years of success as one of Southern California’s leading business law firms, TroyGould is recognized in the U.S. and abroad for its success in helping both U.S. and non-U.S entities and individuals achieve their business goals. The firm’s transactional and litigation clients range from emerging companies to middle-market and Fortune 500 companies across a diverse set of industries including life sciences, technology, entertainment/media, manufacturing, food and beverage, real estate, consumer products and health care. For more information, visit TroyGould.com.