TGI FRIDAY'S INC. v. GREAT NORTHWEST RESTAURANTS, INC. (Aug. 20, 2009) -- Even assuming that restaurant franchisor's mistakes regarding choice of food distribution system led to franchisees' default under franchise agreement, for failing to make requisite royalty payments, franchisees were not excused from performing under franchise agreement, and thus franchisor's termination of agreements was not improper under Texas law. Restaurant franchisor's "forgiving" conduct toward franchisees, by continuing to inspect restaurants, sending them menus and other promotional materials, and continuing to list the restaurant locations on its website, did not waive its termination of the franchise agreements.

LAKE WRIGHT HOSPITALITY, LLC HOLIDAY HOSPITALITY FRANCHISING, INC. (Aug. 20, 2009) -- A hotel franchiser did not fraudulently induce a franchisee to open a hotel under a brand name that was eventually discontinued. At the core of plaintiff's case lies its theory that defendants duped plaintiff in late 2000 into opening its hotel under the Holiday Inn Select ("HISL") brand name, even though defendants had already secretly decided in 1998 or 1999 to "kill" the brand. Plaintiff claims that defendants then strung it and other HISL franchisees along for years, until defendants officially decided in March 2006 to cease sales of new HISL franchises, in order to take advantage of the positive "halo" effect that HISL's premium reputation had on consumer perceptions of defendants' core Holiday Inn brand. Plaintiff claims that this was done at the expense of HISL franchisees, who were unaware that defendants had no long-term interest in establishing HISL as a profitable, self-sustaining brand within the Holiday Inn family. The franchisee alleged that the franchisor knew that the brand name would be discontinued when it induced the franchisee to rebrand its hotel, but the evidence indicated that the brand was discontinued several years later when it failed to attract enough franchisees for long term viability.