Comply With The Post-termination Provisions


Melt Franchising , LLC v. PMI Enterprises, Inc.

By Mulcahy LLP on January 08, 2013

In Melt Franchising , LLC v. PMI Enterprises, Inc. (U.S. District Court, Central District of California, August 2008), Melt Franchising, a gelato italiano franchisor, terminated a Massachusetts franchisee for violating terms of the franchise agreement. Following the termination, Melt retained Mulcahy LLP, who immediately filed a motion for preliminary injunction requesting that the franchisee comply with the post-termination provisions of the franchise agreement.

On August 18, 2008, the District Court granted Melt’s preliminary injunction and ordered the franchisee: (1) to allow Melt to assume management of the store; (2) to cease all use of Melt’s trademarks; (3) to submit all necessary paperwork to assign its lease in the store to Melt; and (4) to sell all or any portion of the assets at the store in compliance with the franchise agreement.

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