ANDERSON COUNTY, KY – Lou Emma Compton, former owner of Dairy Cheer restaurants, known to Kentuckians as the Home of the Smashburger, is now behind bars after cheating her employees out of pay in December 2011.
SACRAMENTO – Governor Jerry Brown announced Monday afternoon that he has vetoed Senate Bill 610. The bill updated the California Franchise Relations Act so that the implied covenant of good faith and fair dealing as stipulated in California law could not be waived in a franchise contract and a franchise could not be frivolously terminated unless there was a "substantial and material breach" of the franchise contract.
NEW YORK – A federal judge in New York ruled last month that a 7-Eleven franchisee cannot go forward with his fraud claim under the New York Franchise Act. The reason? When he purchased his store and signed his franchise agreement, he also agreed to a waiver on any “untrue and unwritten” financial projections of future earnings of his store made by 7-Eleven officials outside the franchise disclosure document.
A man walks alone down a boardwalk with the aid of a walker. BrightStar franchisees take care of the sick & elderly. Photo: MTSOfan
GURNEE, Illinois – While juggling various lawsuits brought by franchisees against the company and its owner, BrightStar executives and legal counsel have bucked the law by not disclosing litigation between franchisor against franchisee in its franchise disclosure documents (FDD).
LOUISVILLE, Ky. – Quick service restaurant workers are expected to demonstrate in 150 cities throughout the United States for a $15 minimum wage. The Service Employees International Union (SEIU) on Wednesday blogged that fast-food workers from Atlanta to Alameda "will walk off their jobs to show that they can't wait any longer for companies like McDonald's to raise their pay."
SAN FRANCISCO – In a sexual harassment lawsuit, the California Supreme Court presented franchisors with a big victory last week. The high court ruled that Domino’s Pizza could not be held liable for the bad behavior of an employee in a franchised location because the franchise agreement defines the limits of liability in employment claims.
Inside view of Sacramento capitol dome. photo/KatieCarr
SACRAMENTO—The California state senate voted 23 - 9 late Thursday in favor of SB 610, a bill that strengthens franchisor good faith relations with franchisees. It is now ready for Governor Jerry Brown's signature to become law.
ANN ARBOR, Michigan – A franchisee, financially devastated through years of disputes and litigation with Domino’s Pizza (NYSE:DPZ), is now taking a new path in fighting against the publicly traded pizza giant. And this time he is doing it without an attorney.
SACRAMENTO – California's assembly voted Thursday morning to pass a bill that aims to strengthen good faith and fair dealing between franchisors and franchisees. The final tally was 41 ayes and 27 nays.
In a case that has captured national attention, and one that is even more relevant today, an appeals court has reversed a federal court’s decision as to whether the franchisor can be considered the employer of a franchisee’s worker.
A federal district court in southern California ruled that Massage Envy could be held liable for violations of the California Unfair Competition Law (UCL) regarding the membership agreements it had originated and distributed to its franchisees for sale to the public. The lawsuit was originally filed on January 18, 2012.
A Missouri district court awarded H&R Block Tax Services $481K in attorneys' fees in connection with litigation arising out of the franchisor terminating its largest franchisee in Puerto Rico. The court had previously awarded H&R Block $1.3M in damages and issued a permanent injunction, enforcing the franchisee's post-termination obligations.
While the hotel industry continues to thrive, unsuspecting hotel owners are being cautioned about a new wave of costly litigation linked to non-compliance violations with provisions of the Americans with Disabilities Act.
Ex-Smashburger CEO David Prokupek has filed a lawsuit against the chain and owners Consumer Capital Partners, claiming he was deceptively cheated out of millions of dollars in stock after they fired him last year.
An announcement last month by the National Labor Relations Board’s general counsel, Richard F. Griffin Jr., stating that McDonald’s USA can be named as a “joint employer” in complaints filed by workers protesting low wages has sparked mixed reviews.
California franchisees are speaking up in online and radio commercials, asking for support of Senate Bill 610, which affords better protection to franchisees. The bill will soon be brought up for a vote in California's state assembly.
A Seattle restaurant owner is suing Google, saying its listing of his restaurant mistakenly showed that it was closed weekends and Mondays, his busiest days, causing business to collapse and the restaurant to shutter its doors.
On Tuesday afternoon, the U.S. Food and Drug Administration (FDA) issued its final rules regarding menu labeling requirements. As passed in the Patient Protection and Affordable Care Act (ACA), the menu labeling regulations require caloric information to be included on the menus and menu boards of "covered food establishments," defined as being a part of 20 or more locations doing business under the same name and offering substantially the same menu items.
Assume that you are a large multi-unit franchisee and you have the opportunity to sell your business to either an existing franchisee or to someone who wants to become a multi-unit franchisee in your system. You read your franchise agreements (perhaps for the first time) and discover that you may not transfer without the franchisor's permission.