Sapan Inamdar & SPI Investments, LLC v. Massage Luxe International, LLC

CourtDistrict Court, D. New Jersey
DecidedMay 26, 2026
Docket3:25-cv-06045
StatusUnknown

This text of Sapan Inamdar & SPI Investments, LLC v. Massage Luxe International, LLC (Sapan Inamdar & SPI Investments, LLC v. Massage Luxe International, LLC) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sapan Inamdar & SPI Investments, LLC v. Massage Luxe International, LLC, (D.N.J. 2026).

Opinion

NOT FOR PUBLICATION

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

SAPAN INAMDAR & SPI INVESTMENTS, LLC, Plaintiffs, Civil Action No. 25-6045 (RK) (JTQ) Vv. MEMORANDUM ORDER MASSAGE LUXE INTERNATIONAL, LLC, Defendant.

KIRSCH, District Judge THIS MATTER comes before the Court upon Defendant Massage Luxe International, LLC’s (“MLI’ or “Defendant”) Motion to Dismiss or in the Alternative Motion to Stay. (“Motion” or “Mot.,” ECF No. 16.) Plaintiffs Sapan Inamdar and SPI Investments, LLC (“SPI”) (collectively, “Plaintiffs”) filed an Opposition, “Opposition” or “Opp.,” ECF No. 17), and Defendant replied, (“Reply,” ECF No. 18). The Court has considered the parties’ submissions and resolves the matter without oral argument pursuant to Federal Rule of Civil Procedure 78 and Local Civil Rule 78.1. For the reasons set forth below, the Court GRANTS Defendant’s Motion and TRANSFERS this case to the United States District Court for the Eastern District of Missouri.!

' While technically granting the Motion, for the reasons that follow, the Court will exercise its discretion to transfer the action to the United States District Court for the Eastern District of Missouri pursuant to 28 U.S.C. § 1404(a) in lieu of outright dismissal.

I. BACKGROUND? Defendant, a Missouri limited liability company, is a franchisor selling the rights to operate spa franchises. (Compl. at 1; id §§ 2-4.)° In 2014, Plaintiffs, a New Jersey limited liability company and a resident of New Jersey, entered into an Area Development Agreement (“ADA”) with Defendant. (id. at 1; id. § 2.) Plaintiffs paid $200,000 for the ADA and agreed to support franchisees in the area covered by the ADA and work to develop new MLI franchises. Ud. 2, 6.) In exchange, Plaintiffs were entitled to a portion of the monthly franchise fee paid to MLI by all franchisees in the ADA’s territory, Plaintiffs would pay less of a franchise fee to MLI for Plaintiffs’ own franchises, and Plaintiffs were given the “exclusive right and license . . . to □□□□ [MLI]’s system and MassageLuxe Marks .. . as necessary to recruit franchisees and to train and service franchisees.” (Ud. {{ 7-9 (ellipses in original) (quoting ECF No. 16-2 at 3-4*).) Despite previous assurances that the ADA was a “fungible asset, which MLI could not and would not ever seek to rescind,” on May 31, 2022, Defendant sent Plaintiffs a letter terminating the ADA and Plaintiffs’ rights thereunder. Ud. | 4, 10-11.) Defendant thereafter stopped making the contracted payments under the ADA, “divest[ing] [Plaintiffs] of approximately 26 months of disbursements.” (id. §§ 12-13.) Plaintiffs have also not been compensated for the “value” of the ADA itself as a “fungible asset.” Ud. JJ 4, 14.) As aresult of the termination of the ADA, one or both Plaintiffs filed a total of three actions in Missouri state court alleging various contractual claims against Defendant. See Khangura v.

? The Court accepts all well pleaded factual allegations in the Complaint as true for purposes of deciding the pending Motion to Dismiss. See Phillips v. County of Allegheny, 515 F.3d 224, 233 (3d Cir. 2008). >“Compl.” refers to Plaintiff's Complaint, which was removed from state court. (See generally ECF No. 1.) It is available at pages 9 through 19 of ECF No. 1. Page-number pincites accompanying “Comp.” refer to the page numbers of the Complaint itself, not the numbers generated by ECF. * Because the exhibits to the Motion lack consecutive pagination, the Court refers to them using the page numbers generated by ECF.

MassageLuxe Int'l LLC, No. 24SL-CC00665 (Mo. Cir. Ct.); Inamdar v. Massage Luxe Int’l, No. 24SL-CC02473 (Mo. Cir. Ct.); Imamdar v. Massage Luxe Int’l, No. 24SL-CC02474 (Mo. Cir. Ct.); (see also Mot. at 16-18 (discussing these actions).) Defendants then responded with a suit of their own against Plaintiffs in Missouri state court. See Massage Luxe Int’l, LLC v. Imamdar, No. 25SL- CC01465 (Mo. Cir. Ct.); (see also Mot. at 18~19 (discussing this action).)° Plaintiffs then filed the instant five-count Complaint in New Jersey Superior Court alleging a violation of the New Jersey Franchise Practices Act (“NJFPA”), N.J. Stat. Ann. § 56:10-1 et seq., as well as claims for negligent misrepresentation, breach of contract, unjust enrichment, and declaratory relief. (See generally Compl.) Defendant removed the case to this Court, invoking this Court’s diversity jurisdiction. (See ECF No. 1.) Defendant then filed the present Motion, arguing, among other things, that the case should be dismissed because the ADA includes a forum selection clause requiring any action related to the enforcement of the ADA to be brought in Missouri state court or the United States District Court for the Eastern District of Missouri (the “Forum Selection Clause”). (Mot. at 21-28.) On May 8, 2026, the Court held a telephone conference with the parties to put them on notice that it was considering transferring the case to the Eastern District of Missouri pursuant to 28 U.S.C. § 1404(a). (See ECF No. 21.) During that conference, the Court inquired of each party whether they sought to provide additional briefing on the issue of potential transfer on the grounds of Section 1404(a) and forum non conveniens. (May 8, 2026 Telephone Conf. Tr. at 4:3-4; 8:20— 9:1.) Both parties agreed that no further briefing was necessary.

> The Court takes judicial notice of these cases. See Orabi v. Att’y Gen., 738 F.3d 535, 537 n.1 Gd Cir. 2014).

II. LEGAL STANDARD A party may properly seek enforcement of a forum selection clause that “allows for suit in either a state or federal forum” by moving to dismiss under Federal Rule of Civil Procedure 12(b)(6). Podesta v. Hanzel, 684 F. App’x 213, 216 (3d Cir. 2017) (citing Salovaara v. Jackson Nat’l Life Ins. Co., 246 F.3d 289, 298 (3d Cir. 2001) (per curiam)). If the district court grants the motion to dismiss, it may either dismiss the case or transfer it to the appropriate federal forum. See APFA, Inc. v. UATP Megmt., LLC, No. 20-5007, 2021 WL 323474, at *5 (D.N.J. Jan. 31, 2021); Breslow y. Klein, No. 17-6912, 2018 WL 3031854, at *1, *13 (D.N.J. June 19, 2018).° “[A]s a general matter, it makes better sense, when venue is proper but the parties have agreed upon a not- unreasonable forum selection clause that points to another federal venue, to transfer rather than dismiss.” Salovaara, 246 F.3d at 299. Regardless of the substance of the Motion at issue, the Court notes that it may swa sponte transfer the case under 28 U.S.C. § 1404(a) for forum non conveniens’ after giving the parties notice and an opportunity to be heard. See Amica Mut. Ins. Co. v. Fogel, 656 F.3d 167, 171 (3d Cir. 2011); White v. ABCO Eng’g Corp., 199 F.3d 140, 144 (3d Cir. 1999) (“[F]or transfer to be effective all relevant parties must be apprised that the court is considering a transfer and have the opportunity to voice opposition.”).

Additionally, courts should “focus ‘on the function of the motion, not its caption.’” Podesta, 684 F. App’x at 215-16 (quoting Turner v.

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Sapan Inamdar & SPI Investments, LLC v. Massage Luxe International, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sapan-inamdar-spi-investments-llc-v-massage-luxe-international-llc-njd-2026.