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Log In / Register | Mar 27, 2017
Cases, news, issues and legal opinions impacting franchise law

NLRB Slaps Domino’s Franchisee for Making Workers Waive Rights on Class Arbitration

An NLRB administrative law judge issued a decision this month stating a Domino's franchisee entity violated the National Labor Relations Act in requiring employees as a condition of employment to agree to pursue legal disputes with the restaurant owners in binding arbitration on an individual basis, waiving their rights to pursue class and collective legal action.

McDonald’s Not Liable for State Labor Law Violations, No Control of Wages at Stores

McDonald's front counterA federal judge in northern California issued its decision earlier this month stating that franchisor McDonald's Corporation does not control the wages paid to workers at restaurants owned by franchisees and is not liable for violations of the state's labor laws.

New York AG Settles with Franchisees on Labor Violations, Domino’s Not Off the Hook

New York AG settles case against Domino's franchisees
AG Schneiderman on May 2016 announces lawsuit against Domino's wage theft

Attorney General Eric T. Schneiderman yesterday settled with three Domino's Pizza franchisees, totaling $480,000 in restitution to hundreds of workers subject to wage and labor violations at ten franchise locations. As part of the settlement, the shop owners will be dismissed from the lawsuit the AG filed last May, leaving Domino's as the only defendant.

Apricot Lane Franchisee Leaves Franchise, Judge Disallows Franchisor to Lease Space

Apricot LaneA nine-unit franchisee of the Apricot Lane chain of women's boutiques has broken away from the franchise, and a federal court has denied the franchisor the right to take over the lease at a franchised location.

Jury Awards Widow of Subway CEO Fred DeLuca $2.9M-plus in Failed Florida Land Deal

After seven and a half hours of deliberation, a Palm Beach County jury in Florida awarded $2.9 million to the widow of the late Fred DeLuca, co-founder and CEO of the Subway sandwich chain, over a failed real estate deal with Delray Beach developer Anthony Pugliese III.

Franchise Terminations and Self-Inflicted Harm

In a recent franchise case the United States District Court of New Jersey (the “Court”) hammered another nail in the termination coffin of a former 7-Eleven franchisee Karamjeet Sodhi ("Franchisee Sodhi" or "Mr. Sodhi"), Manjinder Singh, and Karamjit Singh (collectively, "the Franchisees"), when it denied the Franchisees’ Motion for a stay of the Court's Order granting judgment to Plaintiff 7-Eleven.

Former Liberty Tax Franchisee Awarded $2.7 Million in Bench Trial

A federal judge in Norfolk, Virginia issued a decision last Friday in favor of a multi-unit tax franchisee in New York for $2.7 million, finding Liberty Tax breached its franchise agreement. The judge determined that Liberty Tax's breach of contract happened "the moment it accepted an application from someone else to buy the franchisee's eight stores."

Dickey’s Franchisees Denied Consolidation of Claims into One Arbitration

A California federal court last month denied Dickey's Barbecue franchisees' motion for an order to consolidate their claims into a single arbitration, in a dispute alleging the franchisor made false and misleading representations in selling franchises.

Appeal to Hold Saladworks Liable for Franchisee’s Employee Workers’ Comp Claim Dismissed

The Pennsylvania Supreme Court issued its decision on December 16, 2016 dismissing an appeal of a previous ruling. It ruled that franchisor Saladworks has no liability to its franchisee's employees for claims under workers' compensation laws.

Avenue Capital Again Defeated by Quiznos’ Ric Schaden Executive Team

Multi-billionaire Marc Lasry, CEO/chairman of privately-held Avenue Capital Group, with other hedge fund firms, lost another court battle in the ongoing lawsuit asserting that Richard "Ric" Schaden and his former Quiznos executive team had engaged in a "conspiracy to defraud" when investors took over the troubled sandwich chain in 2012.