Go Figure v. Curves International Exhibits The Difficulty of Imposing Antitrust Scrutiny to the Franchise Dynamic
Some of the tension between the franchise relationship and the antitrust laws played out in a recent case litigated in the United States District Court for the Southern District of Texas.
In Go Figure, Inc. v. Curves International, Inc., the plaintiff, Go Figure, had been an authorized vendor of club operating system software for Curves’ franchises by virtue of an agreement with the franchisor, Curves International. When the agreement expired of its terms in 2009, Curves began development of a competing operating system. The functionality of the Curves operating system (the “Curves OS”) included the ability to store and track data for a new weight management program - Curves Complete - that Curves franchises would be able to offer their members.
Reprinted by permission from Distribution: The Newsletter of the Distribution and Franchising Committee, American Bar Association Antitrust Section, Vol. 16, No. 2, June 2012. Copyright 2012 American Bar Association. The contents of this publication may not be reproduced, in whole or in part, without written permission of the ABA. This information or any portion thereof may not be copied or disseminated in any form or by any means or downloaded or stored in an electronic database or retrieval system without the express written consent of the American Bar Association.
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