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Cases, news, issues and legal opinions impacting franchise law

EEOC Takes Aggressive Measures to Enforce the ADA

Phelps Dunbar has been advising our clients over the last year to expect an increase in EEOC charges and litigation following the passage of the Amendments to the Americans with Disabilities Act. Since the EEOC's final regulation under the Act were published in March of last year, there has been a sharp increase in EEOC charges filed under the ADA.

Ex-Franchisee Liable for Counterfeiting Marks

Courts tell ex-franchisee he cannot use or conterfeit former franchisor's trademarks. It makes him pay, big time.
Not everyone can use the Century 21 logos. Photo/Century 21

LAFAYETTE, Indiana – A district judge ruled last month that a terminated Century 21 franchisee’s continued use of the franchisor’s trademark constituted not only trademark infringement but also counterfeiting. As a result, a court ruled that Century 21 was entitled to collect treble damages and attorney fees.

Frank Zumbo, Deputy Small Business Commissioner.

Professor Frank ZumboIt has been reported that vocal champion for healthy competition Professor Frank Zumbo has been appointed Deputy Small Business Commissioner to South Australia.  The Franchise Council of Australia is disturbed.

Zee Association Lawsuit Survives Motion to Dismiss

On July 19, 2011, the United States District Court, District of Connecticut, Warren W. Eginton, Senior District Judge ruled that EA Independent Franchisee Association, LLC ("plaintiff") could proceed with its lawsuit against Edible Arrangements International, Inc. ("EA") , and certain affiliates thereof (collectively, "defendants").

Franchisee Group Sues Cold Stone

Franchisees say its time for Cold Stone Creamery to give an accounting of Gift Card
A Cold Stone Creamery, photo/blue maumau; Gift Card/Cold Stone web site

MIAMI – The law firm of Zarco Einhorn Salkowski & Brito, PA filed a lawsuit today on behalf of an independent franchisee association against franchisor Cold Stone Creamery for failing to give its members an accounting of monies collected from third-party vendors and the franchisor's gift card program.

Construction Exchange

A 1031 construction exchangeenables the taxpayer to defer federal and state capital gains and recapture depreciation taxes on the sale of existing property, and construct improvements to a replacement property.

EB 5 Visa for Immigrant Investors

Back in the mid-1970’s, Patels from Africa and Asia began to emigrate to the United States where any immigrant willing to invest $40,000 in a business could apply for permanent residence, the first step to citizenship.  There were limited opportunities for such investments.

Bajio Consultant Speaks Out on Award

SALT LAKE CITY - As consultant to franchisors Bajio, LLC and Bajio Mountain West, LLC, Bradley T. Davis has a lot to say about the arbitration award presented to franchisees Brad and Sanford Woodward on July 27, 2011. Not only did he give his declaration in Fourth District Court in Utah, he also spoke with Blue MauMau.

Ex-Subway Owners Yet to See Dime of Awarded $8.4M for Fraud

Satire of logo, courtesy of BMM
Satire of Bajio Mexican Grill logo with burning dollars by BMM

SALT LAKE CITY – A Utah arbitrator demanded franchisor Bajio Mexican Grill make restitution for defrauding franchisees and harming their family. He awarded the owners $8.4 million, sending a strong message to the franchisor to change its ways.

Obama Asks for Leaner Govt, Promotes SBA Head

In East Room, Obama asks Congress to give him authority to consolidate federal government agencies
photo: Lawrence Jackson, White House Photographer

WASHINGTON, D.C. — President Obama announced yesterday an initiative to merge commerce-related departments of the federal government into one entity and to promote the Small Business Administration head to Cabinet member. Franchisor and franchisee advocates are generally positive about the move.