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Court Watch

By Lauren Sullins Ralls
December 31, 2013

Preliminary Injunction Issued Against Franchisees That Disregarded Pricing Promotion

In a decision that demonstrates the ability of franchisors to enforce mandatory pricing promotions to maintain system-wide uniformity, two Denver Steak 'n Shake franchisees and affiliates were ordered to immediately cease operations after they failed to comply with national pricing and marketing policies. In Steak N. Shake Enterprises Inc. v. Globex Company, LLC, No. 13-cv-01751-RM-CBS (D. Colo. Sept. 3, 2013), the U.S. District Court for the District of Colorado granted franchisor Steak 'n Shake's motion for a preliminary injunction against franchisees who continued to operate after Steak 'n Shake terminated their franchises for failing to comply with system-wide uniform pricing for its meals and menu items.

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