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ARTICLE · 12 JANUARY 2024

Breadeaux's Pisa, LLC v. Beckman Bros. Ltd.

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Litigants may be stuck with the choices they make in pursuing their rights under franchise agreements.

United StatesLitigation, Mediation & Arbitration
Peter Loh
Peter Loh
Michael McCluskey
Michael McCluskey
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Litigants may be stuck with the choices they make in pursuing their rights under franchise agreements. In Breadeaux's Pisa, LLC v. Beckman Bros. Ltd., Breadeaux, a franchisor, and Beckman Brothers Ltd., a franchisee operating under the name Main Street Pizza, were in a franchise relationship. Under the franchise agreement, the parties' relationship was set to last for fifteen years with an option to renew for another fifteen years. When the first term expired in May 2021, Breadeaux decided not to renew the relationship.

The following month, Breadeaux sent a cease-and-desist letter to Main Street Pizza because Main Street Pizza continued to operate its pizzeria in violation of the franchise agreement's non-compete provision. The franchise agreement prohibited Main Street Pizza from operating a pizzeria in that same location for two years. In December 2021, Breadeaux sought a declaratory judgment that Main Street Pizza had breached the franchise agreement and

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