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Court Watch

By Charles G. Miller and Darryl A. Hart
April 01, 2016

Court Declines to Issue Preliminary Injunction Notwithstanding Franchise Agreement Properly Terminated

A federal district court in New Jersey found that a franchisor was likely to prevail on the merits and that continued use of the franchisor's name post-termination would create confusion in the mind of the public as to the source of the products sold, but declined to issue a preliminary injunction that would require the franchisee to turn over possession of the franchised locations to the franchisor. 7-Eleven, Inc. v. Sodhi, Bus. Fran. Guide (Wolterskluwer) '15,697 (D. NJ Feb. 9, 2016). There, the franchisee operated a number of 7-11 stores and was charged with having taken over $270,000 out of the business through manipulation of 7-11's loan.

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