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Log In / Register | May 16, 2012

Investigative News

Are Franchises Commercial Marriages from Heaven or Hell?

Member | BMM | Apr 17 | buy, franchising, legal

Heaven or hell?SYDNEY, Australia — Since it flourished in the early 1970s under the influence of American fast food outlets such as McDonald's and KFC, franchising has become one of the most dynamic aspects of Australia's small business sector.

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Gas Station Franchisees Face Stormy Weather

Member | Paul Steinberg | May 15 | legal, service
A pedestrian walks by a closed-down Sunoco service station

A pedestrian walks past a shuttered Sunoco service station, photo/bmm

WASHINGTON — A shift in franchisor strategy coupled with margin pressure has led to difficult times for gas station franchisees.

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McDonald's Loses to Franchisees on Appeal

Member | Janet Sparks | May 14 | food, legal
U.S. Flag & McD Flag
photo/bmm

SAN FRANCISCO – An appeals court has affirmed a lower court decision that two 30-year multi-unit franchisee veterans may continue operating their three McDonald’s restaurants, pending completion of their trial. The jury trial will begin on May 29, challenging McDonald’s on its decision not to grant 20-year “rewrites” of their existing franchise terms, after promising to do so.

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Judge Rules for BP Despite Fraud against Franchisees

Member | Janet Sparks | May 7 | legal, service
A BP station in Midwest U.S.
Judge rules bad faith by franchisor in deceiving BP franchisees is irrelevant

CHICAGO – A Cook County circuit judge ruled in favor of BP Products North America Inc on all counts brought by two franchisees claiming the oil giant defrauded them. But the judge’s ruling came in spite of finding BP intended to deceive the owners when they purchased their stations by concealing its fuel margins.

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2011 Lawsuits through the Eyes of DLA Piper

Member | Janet Sparks | Apr 25 | legal

WASHINGTON – As we are now well into 2012, a look back at last year’s pertinent legal cases is important for franchisors and their attorneys.

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California Chamber Supports IFA, Verbatim

Member | BMM | Apr 21 | franchising, legal

SACRAMENTO — California's Chamber of Commerce has come out in opposition to the state's franchising abuse reform bill, Assembly Bill 2305.

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California Consumer Committee Up Next to Hear Franchising Abuse Reform Bill

Member | BMM | Apr 20 | legal
Franchisee advocates for fairer franchising fill committee room
Franchisees for AB 2305 fill the Judicial Committee hearing Apr 17. (photo/Gordon)

SACRAMENTO — California's fair franchising bill now heads to a second committee for approval on Tuesday, April 24.  The Business, Professions and Consumer Protections Committee of six Democrats and three Republicans will panel a public hearing on several bills, including Assembly Bill 2305, the Level Playing Field for Small Business Act.

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IFA Quickly Ascertains It Doesn’t Like California Bill

Member | BMM | Apr 19 | franchising, legal

WASHINGTON, D.C. — Blue MauMau learned that the International Franchise Association (IFA) had informed franchisee members of its stand almost a month after it publicly declared opposition to California's franchising abuse reform bill. Last week on April 11, six days before the public hearing on the bill, Franchisee Forum leaders of the IFA were told via conference about the association's opposition to the state bill.

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California Assemblyman Pleased with Progress of Bill to Curb Franchising Abuse

Member | Don Sniegowski | Apr 18 | franchising, legal
Assemblymember Jared Huffman reads remarks to Judicial Committee for passage of fair franchise bill
Huffman  urges Committee to approve AB2305. It won a 6-3 vote. (photo/Raja)

SACRAMENTO — One of the two Assemblymembers who introduced California’s fair franchising bill spent a few minutes on the phone with Blue MauMau shortly after Bill 2305 was passed by the Judiciary Committee Tuesday afternoon. 

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EEOC: How to Avoid Sexual Harassment Suits

Member | BMM | Apr 18 | legal, manage

SAN FRANCISCO – The U.S. Equal Employment Opportunity Commission (EEOC) spoke with Blue MauMau about how restaurant and franchise owners can avoid getting into the kind of sexual harassment trouble in which Burger King franchisee Kaizen recently found itself.

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Headlines from the 'Net

Franchisor Attorney Speaks on Franchisee Bills

Reporter | Janet Sparks | 1:39 pm | franchising, legal

While recent California and Massachusetts proposed bills initiated by  franchisees have been unsuccessful in getting passage, one franchisor attorney expects to see them resurface for future consideration. And, he reminds, Vermont’s similar bill will be voted on later this year.

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A Rare Victory For Australian Franchisees

Member | Ray Borradale | May 14 | legal

The Supreme Court of Appeal in Victoria handed down $1.22 million in damages to Billy Baxters’ franchisees Ross and Sue Pollard in a case of misrepresentation. Franchising case Law in Australia comes along very rarely and typically relies on an amateurish franchisor underestimating the resourses of a franchisee.

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European Franchise Focus On Ethics

Member | Ray Borradale | Apr 25 | legal

European countries have gathered in Prague to consider the British Franchise Association’s developments in the ethical operation of franchises. None of these countries have relationship laws.

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Subway Loses to Subway Niche

Reporter | Don Sniegowski | Apr 19 | food, legal

A judge ruled that the Singaporean sandwich maker called Subway Niche's pre-packaged sandwiches could not be confused with the international Subway chain, which makes fresh sandwiches.

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Texas IHOP Franchisee Facing Muslim Discrimination Suit

Member | Dave Tanaka | Apr 18 | legal, manage

Four former IHOP managers, who are Muslim, are charging that Anthraper Investment, owner of the Texas IHOP restaurants where they worked, with discrimination.

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Titans Arm Prima Facie Insolvent

Member | Ray Borradale | Mar 23 | legal

The Gold Coast Titans face their biggest challenge since entering the National Rugby League in 2007. Next month the team’s property arm will face a bankruptcy application after the Federal Court allowed one its creditors to replace the Australian Tax Office as a new plaintiff against the $35 million debt laden group of companies.

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Australia’s First SME Commissioner As Small Business Moves to Cabinet

Member | Ray Borradale | Mar 16 | legal

Recently the Australian government announced that Small Business would move to Cabinet and now we have the appointment of our first federal Small Business Commissioner.

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DLA Piper Will Drop Clients

Gossip | Oscar P Hoot | Mar 16 | legal

The 4200 attorney firm has 15 franchise attorneys who may be shown the door as focus shifts to serving global corporate clients.

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Home Care Industry Fights New Pay Rules

Member | Marilee Hayes | Feb 24 | legal

New regulations that will require overtime pay and minimum wage for home care workers are getting pushback from within the industry and from the franchising sector.

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KFC Franchisee Bankruptcy Auction Outcome, Store level Sales, Profit Values Seen

Expert | John Gordon | Feb 24 | legal

110 US KFC units of Kazi Foods (NY, NJ, FL, MD, MI) have been sold at auction, for $56.2 in total consideration, primarily via debt assumption. Cash proceeds were only $2.8M.

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Expert Advice

Federal Court Invalidates "Quickie" Union Election Rule, For Now

Expert | Mark Fijman | May 15 | legal
Mark Fijman's picture

On May 14, 2012, the U.S. District Court for the District of Columbia set aside a controversial final rule of the National Labor Relations Board ("NLRB") that was designed to make it easier and faster for unions to hold organizing elections.

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Still Undecided, When Will Franchisees Be "Employees"

Expert | Mario Herman | May 10 | legal
Mario Herman's picture

On February 16, 2012, the United States District Court, Northern District of California, granted the Plaintiff's motion for certification and stayed the action pending resolution of the interlocutory appeal before the Ninth Circuit in the matter of Juarez v. Jani-King of California, Inc.

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EEOC Warns Employers Using Criminal Records in Making Employment Decisions

Expert | Mark Fijman | Apr 26 | legal
Mark Fijman's picture

On April 25, 2012, the United States Equal Employment Opportunity Commission ("EEOC") issued revised enforcement guidance on the extent to which employers may rely on an individual’s criminal history in making hiring or other employment selection decisions.

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