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Franchisors May Have Standing to Seek to Quash Subpoenas Directed to Third Parties

By ALM Staff | Law Journal Newsletters |

What can a franchisor do if some of its franchisees or business partners (who are not parties to the litigation) are slapped with broad and burdensome subpoenas from disgruntled franchisees or potential franchisees in litigation? In many cases, the answer may be nothing. The Federal Rules of Civil Procedure generally do not allow a party to seek to enforce the rights of others (many states have analogous rules, as well).

Notwithstanding the general rule, one federal district court recently found that Dunkin' Donuts, Inc. and Baskin-Robbins USA, Co. had standing to object to nine subpoenas served on third parties even though the third parties themselves never directly sought the court's protection or involvement. Barkan v. Dunkin' Donuts, Inc., No. CA05-050L, 2008 WL 1924007, at *3 (D.R.I. Apr. 28, 2008). The subpoenas were served on investment banks involved in the acquisition of the defendants' corporate owner, other Dunkin' Donuts franchisees that purchased stores, another franchisee that apparently made unsuccessful efforts to acquire six additional stores, another bank, and the defendants' attorneys. Barkan, 2008 WL 1924007, at *1.

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