Texas law continues to navigate through various litigation-related franchising issues. Although this Survey period did not have any single “blockbuster” development for franchise and distribution case law in Texas, a number of cases were decided on frequently litigated issues in Texas, including the scope and applicability of contractual arbitration provisions, the interpretation of discretionary contract obligations, misappropriation of trade secrets as defined by the Texas Uniform Trade Secrets Act, and the application of the economic loss rule to fraud and misrepresentation claims. This Survey period produced many Texas cases that continue to define and shape the franchise environment. These cases highlight important considerations for contract drafters and litigators, including procedural hurdles, early-dispute resolution, common law and statutory claims, and intellectual property issues that are unique to the franchising model.
Deborah S. Coldwell, et al., Franchise Law, 4 SMU Ann. Tex. Surv. 183 (2018)