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Franchisor Retaliation Okay if Franchisor 'More Believable' than Franchisee

In Percy Pooniwala, and Dinaz Pooniwala,v. Wyndham Worldwide Corp., Super 8 Worldwide, Inc., Travelodge Hotels, Inc., and Days Inn Worldwide, the matter was before the Court on Plaintiffs Percy Pooniwala's ("P. Pooniwala") and Dinaz Pooniwala's ("D. Pooniwala") (collectively, "Plaintiffs") Motion for Preliminary Injunction against Defendants Wyndham Worldwide Corp. to enjoin Defendants from taking actions relating to various franchise agreements. For the reasons set forth below, the Court denied the motion.

Are They Franchisees or Employees? Court Not Impressed with CleanNet's Tactics

This putative class action of Sanchez v. CleanNet USA, Inc., 2015 WL 231450 (N.D. Ill. 2015) arises out of Plaintiff Jose Sanchez's participation as a franchisee in a nationwide network of commercial cleaning franchise businesses.

Franchisor Control Problems and the Alexander Haig Solution

A recent case in California federal court, Vann v. Massage Envy Franchising LLC, 2015 WL 74139 (S.D.Cal. 2015), has given franchisors a win on a fact-specific application of the "employer control" issue in a vicarious liability setting.

Governor Brown’s Veto of the Franchise Legislation, Cold Turkey Legs, Churning and Mud-Slinging

Governor Brown’s recent veto of the proposed California franchise legislation was momentously stunning in light of his political background, the legislature’s strong support for the proposal, and the relatively unthrusting additional functional protection that the legislation would have provided to franchisees. Why did he veto the legislation?

NY and LA Times Essays Are Pravda-Like Editorials on California’s Franchise Bill

In an Editorial in the New York Times dated August 27, 2014, entitled “A Better Deal for Franchisees and Workers”, the NY Times recommends that Governor Brown sign California Bill, SB 610, which amends existing franchise legislation by providing additional limited rights to franchisees.

Baloney, Big Macs, the NLRB and Franchise Advocacy

A column last week in the Los Angeles Times, entitled “The NLRB-McDonald's Ruling Could Be the Beginning of a Franchise War” is another example of how top franchise industry ‘experts’ and ‘talking heads’ too frequently lack sufficient knowledge about the facts and theories they are discussing.

Court Rules Summarily Against Hotel Franchisee Refusing to Consider Franchisor's Alleged Breach and Fraud

This case arose out of the premature termination of a licensing agreement ("the Agreement") between Plaintiff Days Inn Wordwide, Inc. ("Days Inn") and Defendant Khan Group, LLC ("the Khan Group").

Court Rejects Credibility of Skincare Spa Franchisee

Kalologie, a franchisor of day spas, sought a preliminary injunction preventing Defendants, who formerly operated under a franchise agreement with Kalologie, from continuing to use Kalologie's

Hotel Franchisee Pays Half A Million Dollars for Franchisor's Computer System

A recent case decided by the United States Circuit Court for the Sixth Circuit, La Quinta v Heartland Properties, shows again the animosity that most Courts, especially federal Courts, have towards franchisees.

Information Is Good, But Not Too Much

The Federal Trade Commission’s view of how to regulate source requirements is to pump more information into the market to allow actors in the franchise arena to make more efficient decisions.