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Terminated Tutor Time Franchisee Prevails in Non-Compete Enforcement

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A former Tutor Time franchisee prevailed in an attempt by the franchisor to obtain a preliminary injunction. Read more about this case involving a non-compete.

A former Tutor Time franchisee was terminated by the franchisor and had ceased operating under the Tutor Time name and discontinued utilizing Tutor Time educational materials, forms and the location telephone numbers. The terminated franchisee with locations in Queens and Staten Island, New York continued operating its childcare business under a new name.  Tutor Time sought a preliminary injunction in Federal District Court in Brooklyn against the defendant that would cause them to cease operations. The defendant was represented by Michael Einbinder of the New York law firm Einbinder & Dunn.  The court denied the preliminary injunction stating that "To obtain a preliminary injunction, the moving party must demonstrate '(1) irreparable harm absent injunctive relief; (2) either a likelihood of success on the merits, or a serious question going to the merits to make them a fair ground for trial, with a balance of hardships tipping decidedly in the plaintiffs favor; and (3) that the public's interest weighs in favor of granting an injunction.'"   Judge Nicholas Garaufis of the United States District Court in Brooklyn, New York ruled that Tutor Time had not established that without the injunction it would suffer an irreparable injury, in part because Tutor Time had not sought to enforce non competes against other franchisees and was not selling new franchises in New York.  The court also ruled that the public interest of the families that used the defendantís childcare services would be harmed if defendant was prohibited from operating.

Click here to download the Court Memorandum and Order.

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Ed Teixeira is the President of FranchiseKnowHow, LLC. He can be reached at franchiseknowhow@gmail.com

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