Gordon Rees Scully Mansukhani partners Peter Siachos and Allison Becker, along with Senior Counsel Ben Williams, secured a decisive summary judgment ruling in favor of their client following nearly five years of hard-fought franchise litigation in the United States District Court for the Eastern District of North Carolina.
The case arose from a complex commercial dispute brought by a national tax preparation franchisor against a long-time multi-unit franchisee and related individual defendants, involving claims for breach of multiple franchise agreements and recovery under promissory notes issued in connection with franchise operations, along with counterclaims by the franchisee. The litigation spanned extensive fact and expert discovery, multiple dispositive motions, a parallel federal criminal investigation of nonparties, and a full hearing on the parties’ cross-motions for summary judgment.
Following a lengthy hearing, the Court issued a comprehensive Order granting summary judgment in favor of the firm’s client on all claims, denying the defendants’ competing motion in its entirety, and directing the clerk to enter judgment for the full amount claimed, plus post-judgment interest and recoverable attorneys’ fees on behalf of GRSM’s client. The ruling resolved the case completely at the dispositive motion stage, obviating the need for trial that would have occurred in the summer of 2026.
In its detailed opinion, the Court found that the defendants materially breached their franchise agreements, rejected defenses premised on alleged notice-and-cure requirements, and upheld the client’s contractual right to terminate the franchise agreements without notice under the governing provisions. The Court further rejected a range of affirmative defenses and recoupment theories advanced by the defendants and enforced the promissory notes at issue as separate, valid contractual obligations. The Order represents a complete merits victory and a clean enforcement of the franchisor’s contractual rights.
The result reflects a sustained, long-term litigation strategy that combined aggressive motion practice, careful development of the factual record, and close coordination with the client on both legal and business objectives. This victory further underscores GRSM’s Franchise practice capabilities and the firm’s ability to handle complex, high-stakes disputes for franchisors, particularly cases involving multi-location operations, regulatory compliance issues, and significant financial exposure.