Whataburger Gets Partial Win In Row Over Franchising Deal

Law360, New York (June 21, 2017, 9:22 PM EDT) -- A state appeals court on Wednesday ruled partly in favor of a South Texas Whataburger franchise in a dispute over interpretation of a 1993 settlement reached when the company bought 28 of the franchisee's locations in exchange for future development rights.

The Texas Fourth Court of Appeals upheld some of a Bexar County court’s grant of summary judgment to Whataburger of Alice Ltd. in a dispute stemming from a settlement between it and Whataburger Inc. The lower court had ruled that WOA had the right to redesignate existing locations as “new” locations under the agreement once the existing  franchise agreement had...

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