Antitrust Law Daily Wrap Up, FRANCHISING & DISTRIBUTION NEWS: Dating service franchisor seeks declaratory judgment in nonrenewal dispute, (May 5, 2015)

By Linda O’Brien, J.D., LL.M.

A dating/matchmaking services franchisor is seeking a declaratory judgment that its franchisee does not have the right to renew the franchise agreement for an additional term and the agreement will expire by its terms on September 1, 2015, in a complaint filed in the federal district court of Columbus, Ohio (It’s Just Lunch International, LLC v. Loraine, Inc., May 4, 2015).

It’s Just Lunch International (IJL) developed and operates a dating/matchmaking business through which single adults are matched and a meeting is arranged for the two clients. IJL grants franchises to persons or entities to operate an IJL business and use IJL registered trademarks.

The complaint alleges that, in August 2000, IJL and Loraine, Inc. executed a franchise agreement through which the franchisee acquired the right and undertook the obligation to operate an It’s Just Lunch franchise within the Columbus metropolitan area. The agreement had an initial term of five years. In May 2005, IJL and Loraine, Inc. entered into a second franchise agreement. The second agreement was for a five-year term, but provided that Loraine, Inc. could renew the agreement for an additional five-year term. Prior to the expiration of the second agreement, the franchisee elected to renew the agreement for an additional five-year term.

In September 2010, IJL and Loraine Inc. entered into a third franchise agreement. Contemporaneously with the execution of the third agreement, the parties executed an addendum that (1) specifically provided that the agreement was for one five-year term beginning on September 1, 2010 and expired on September 1, 2015, and (2) deleted the provision relating to the franchisee’s right to acquire a renewal franchise, the franchisor claimed.

According to the complaint, the franchisee has claimed that it has the right to renew the third franchise agreement for an additional term beginning on September 2, 2015. However, IJL has decided not to renew the third franchisee agreement between it and Loraine, Inc. and states that said agreement will expire by its terms on September 1, 2015.

The plaintiff seeks declaratory relief, costs of suit, attorneys’ fees, and any other just and proper relief.

The case is No. 2:15-cv-01640-ALM-TPK.

Attorneys: Thomas I. Blackburn (Lane, Alton & Horst LLC) and Jeffrey Zucker and Gregory L. Kallet (Fisher Zucker, LLC) for It’s Just Lunch International, LLC.

Companies: It’s Just Lunch International, LLC; Loraine, Inc.

News: FranchisingDistribution OhioNews