11th Circuit Affirms Injunction against Dunkin' Franchisee. The Miami Herald reports that Omar Martinez, a Dunkin' franchisee who was terminated for federal tax violations, has finally closed his Dunkin' Donuts doors after the 11th Circuit affirmed the district court's injunction of his operation. Martinez argued that Dunkin' should not be permitted to terminate franchises for criminal conduct if the government does not prosecute the franchisees. The court disagreed, holding that Dunkin' has the right to terminate for such conduct and that the franchisees were required to stop using Dunkin's marks. The 11th Circuit affirmed. Dunkin's standards compliance and now "obey all laws" compliance programs have been closely watched by the franchise community. The "obey all laws" compliance has, however, received mixed reactions. See January 27 and October 16 blog entries.
Posted by franchiselawblog at February 3, 2004 11:10 AM