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REPRESENTING FRANCHISEES
& DEALERS
NEWS FLASH!
In each year since 2000, Carmen D. Caruso has been named a "HIGH FLYING LEGAL EAGLE" by Franchise Times, a leading industry publication!
Carmen Caruso has represented or advised clients in numerous systems in retail, hospitality, automotive, health care, and service industries. He has achieved significant victories in the federal courts of appeals and has obtained impressive results for his clients.
Mr. Caruso's most publicized victory for franchisees came in the United States Court of Appeals for the Seventh Circuit in Interim Health Care of Northern Illinois v. Interim Health Care, 225 F.3d 876 (7th Cir. 2000).
Mr. Caruso represented a home health care franchisee in claims for territorial encroachment, failure to refer national accounts, and bad faith franchise termination. The Court of Appeals reversed a summary judgment for the
franchisor, and confirmed the application of the implied covenant of good faith & fair dealing to a franchisee’s claims relating to the franchisor’s duty to refer national account business, and the termination of the franchise. The case was then settled on remand. The widely reported Interim case remains one of the most recent victories for a franchisee in a United States Court of Appeals under an implied covenant of good faith & fair dealing.
Berggren v. Bang & Olufsen of America, Inc. (Cook County, Illinois, current, 2002-). Current representation of six Bang & Olufsen dealers in Illinois, Indiana, Colorado, Texas, Oregon and Washington, who allege that their licenses were, in fact, franchise agreements, and were induced by fraud.
Brodsky v. Cash Converters (American Arbitration Association, 2000). Successful representation of area developer and franchisee on claims for fraudulent inducement based on false earnings claims.
Cassan Enterprises, Inc. v. Dollar Systems, Inc., (United States Supreme Court 1998). Wrote Amicus Curiae brief of American Association of Franchisees & Dealers in support of Petition for Certiorari in a case involving a denial of access to a lucrative airport opportunity.
Baskin-Robbins franchise litigation (multiple cases in Illinois, Colorado and New Mexico, current, 2002-03).
Representation of multiple Baskin-Robbins franchisees in disputes over the enforcement of their post-termination non-compete clauses. We have obtained a ruling from one federal judge in Chicago that there are serious questions as to whether Baskin-Robbins could obtain injunctive relief in markets where it has withdrawn from the operation of single stores.
Dunkin-Donuts franchise litigation (multiple cases in N.D. Illinois, current, 2002-03). Representation as co-counsel in multiple Dunkin’ Donut franchisees in audit litigation, and termination cases.
FBN v. Sizzler Restaurants Int. (N.D. Ill. and C.D. Cal.) (1991). Representing multi-store franchisee with fraud claims against
franchisor, and defense of related termination proceeding, including successful mediation.
The case involved alleged fraud in the inducement and alleged failure to maintain system standards. Holiday Inn franchise litigation (Illinois, late 1980’s).
Representation of multi-unit owner in termination case based on charges of permitting the operation of a prostitution ring near O’Hare airport, where the franchisor attempted to invoke cross-default clause. Home Repair, Inc. v. Paul W. Davis Systems, Inc., 2000 U.S. Dist. LEXIS 929 (N.D. Ill. 2000). Successful prosecution of civil rights claim under 42
U.S.C. §1981 for racial discrimination in denial of a franchise opportunity. After the district court denied the franchisor’s motion for summary judgment in the cited opinion, the case was favorably settled on the day before the trial was to start. Jake’s Pizza Litigation
(N.Ill. 2003) and (N.D. Ill. 1997-98). Representation of a group of franchisees who
attempted to purchase their franchise system in a bankruptcy proceeding, and
subsequent defense of a franchisee in claim against franchisor for premature termination of agreement in violation of franchise agreement and defense of trademark infringement claim. Jostens, Inc. v. Potter (N.D. Ill. 1998). Successfully defended a class ring distributor in a civil contempt proceeding, in which the distributor had been charged with violating an injunction that had previously been entered, to enforce the terms of a non-compete clause. Mr. Caruso entered the case after the federal district judge had already held the client in contempt. Mr. Caruso persuaded the judge to give the client a new trial, which lasted four days, at which Mr. Caruso prevailed. Properties Unlimited Realtors, Inc. v. Cendant Mobility Services, Inc. et al, (7th. Cir., currently pending). We are appealing from the dismissal of a complaint for fraud in the inducement of an agreement for a Coldwell Banker franchise to enroll in Cendant’s referral program after Cendant acquired the Coldwell brand. The case is set for oral argument in the U.S. Court of Appeals in Chicago on September 8, 2003. Roots of Canada Litigation, (N.D. Ill. 1997-98).
Co-counsel in action for rescission of retail franchise agreements. Other Systems
In addition, Mr. Caruso is counsel or co-counsel to franchisees in each of the following systems, among others:
Atlanta Bread Company
Better Homes & Gardens
Burger King
Century 21
Creative Colors International
Days Inn
Gymboree Play & Music
Jani-King
Kitchen Tune-Up
Kwik Copy
Mail Boxes Etc.
Marathon Oil Service Stations
Merlin Muffler & Brake
Munro Mufflers
Mr. Rooter
Naked Furniture
Nancy's Pizza
Oil Express
Outdoor Lighting Perspectives
Rainbow International Carpet Dying & Cleaning Company
Remax
Sign-a-Rama
Verlo Mattress Factory Stores
White Hen Pantry
Ziebart Rustproofing
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