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Log In / Register | May 23, 2013

Investigative News

NFIB Announces Support of California’s Fair Franchising Bill

Member | Don Sniegowski | May 12 | legal

SACRAMENTO—The National Federation of Independent Business announced on Friday that it is supporting California's Senate Bill 610, a fair franchising amendment to California's existing Franchise Relations Act.

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Giordano's Franchisees Get Bigger Piece of Pie

Member | Janet Sparks | May 7 | food, legal
Giordano's Pizza Chicago
Neon sign of a Giardano's Pizza restaurant in Chicago. photo / thomas hawke

CHICAGO – A judge has dismissed all claims against Giordano’s Pizza franchisees brought by the former owners of the bankrupted company, stating the husband and wife team do not have individual standing to sue.

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Maine Introduces Groundbreaking Franchise Bill

Member | Don Sniegowski | May 2 | legal
Maine State Capitol dome, photo from Wikipedia
Maine State Capitol Dome, photo: wikipedia

AUGUSTA, Maine — Maine's legislature has joined a growing chorus of states that are pushing laws to protect franchised businesses. Last Thursday a group of powerful state senators endorsed LD 1458, the Maine Small Business Investment Protection Act.

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Judge Calls ADA Attorney Suing Subway Owners a Parasite

Member | Janet Sparks | Apr 19 | legal
Subway 2933072482_cec2bbe245_m

NEW YORK – A district judge had a few choice words for an attorney filing multiple lawsuits against Subway franchisees, who were not compliant with disability laws that protected his disabled clients.

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Anonymous Email Urges Owners to Sue Quiznos...Now

Member | Janet Sparks | Apr 13 | legal
Another Closed Quiznos

DENVER – An anonymous franchisee sent out a desperate plea last weekend to store owners across the country, urging them to join others in a new blast of litigation against Quiznos. 

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Molly Maid Terminates Alleged Franchisee Burglar

Member | Don Sniegowski | Apr 11 | legal, service
Bryan P Frantz
Molly Maid franchisee Bryan P. Frantz of Missouri, photo: BBB

ST. LOUIS — A Missouri-based Molly Maid franchise owner was arrested in February for using a key reserved for cleaning days and allegedly later sneaking into the apartment to perform a first-degree burglary job.

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Minority Franchisees Accuse Sizzler of Racism

Member | Janet Sparks | Apr 10 | legal

MISSION VIEJO – After franchisees John and Aziza Georgian successfully operated Sizzler restaurants for nine years, they planned to renew their two franchise agreements and buy more stores. Little did they know at the time, as the last remaining African-American franchise owners in the system, they would later claim racial discrimination against the franchisor when renewing their agreements.

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Avis Seeks Rehearing to Boot Native Jurors

Member | Janet Sparks | Mar 26 | legal
Woman of Alaskan native background
Woman of Alaskan native background. photo/ObeseSeagullProductions

ANCHORAGE — Ninety-three-year-old Robert Halcro received affirmation of his $20 million award last month, but the fifty-six-year Avis licensee will not receive a penny of it just yet.

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Disclaimers Do Not Bar Franchisee Claims of A&W Violating Franchise Law

Member | Janet Sparks | Mar 20 | legal

LOUISVILLE, Ky. – A federal court has ruled that the disclaimers in A&W’s franchise disclosure documents given to a franchisee when buying his franchise do not bar his counterclaim that A&W violated the Minnesota Franchising Act when giving him untrue statements and financial projections.

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Top 12 Cases of 2012 through DLA Piper Eyes

Member | Janet Sparks | Mar 12 | legal

WASHINGTON – Why should franchisees and their attorneys pay attention to the top 12 legal cases picked by one of the largest franchisor law firms?  Because these cases and rulings represent a growing trend in our business sector today, that which shapes the relationship between franchisor and franchisee. 

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Headlines from the 'Net

Senate Passes Marketplace Fairness Act

Reporter | Janet Sparks | May 12 | legal

The United States Senate passed on the Marketplace Fairness Act (S 743) by a vote of 69 to 27, reports DLA  Piper in its US Tax Alert. The bulletin explains:

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Internet Tax Passes U.S. Senate

Member | Dave Tanaka | May 7 | legal

The U.S. Senate passed the Internet Tax bill yesterday in a bipartisan vote of 69 to 27. It faces an uncertain future in the House. President Obama has said that he supports it.

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Are Franchisees Well Informed? Revisiting Franchise Relationship Laws

Expert | Robert Purvin | May 1 | franchising, legal

Are franchise owners really well informed? Law professors Robert Emerson and Uri Benoliel say no and that there is a powerful case for the need to protect franchise owners from franchisor opportunism.

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Tesla's CEO May Take Dealer Fight Federal

Member | Dave Tanaka | Apr 15 | legal

Tesla Motors has fought dealers in several states already for the right to sell its electric cars in company-owned stores instead of through franchised dealers.

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Franchise Small Business Admin Loans Equal Large Taxpayer Losses

Member | Old Sword | Apr 9 | buy, franchising, legal
Flushing money down the toilet

Journalists Lynn Hulsey and Ken McCall look into the world of franchising via Small Business Administration lending and uncover a universe of bad loans, shoddy underwriting practices and non-existent oversight.

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Franchise Complaints To ACCC Rocket

Australia | Ray Borradale | Apr 2 | legal

At a time when the performance of Australia’s Franchising Code of Conduct is under review the ACCC has released a damning report on the level of complaints they have received.

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Tesla Seeks Changes in Texas Franchise Law

Member | Dave Tanaka | Mar 31 | legal

Tesla, the electric car maker, has scored victories this year against state automobile dealer associations who sought to prevent it from opening sales locations in Minnesota and Massachusetts, at least temporarily.

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New Zealand Franchisee Capitulates

Australia | Ray Borradale | Mar 27 | legal

What was he thinking? A New Zealand franchisee, who rebranded three of his franchises without the knowledge or consent of the franchisor, now finds those franchises belong to the franchisor.

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Judge Stops NYC Soda Ban on Eve of Implementation

Member | BMM Staff | Mar 11 | food, legal

New York Supreme Court Judge Milton Tingling reversed Mayor Michael Bloomberg's supersize soda ban today, the day before it was scheduled to go into effect.

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Trial Set for Flamin' Joe's Franchisee Caught in Oxycontin Drug Ring

Reporter | Janet Sparks | Mar 9 | food, legal

A district judge has scheduled a trial date for Sally Guthrie, franchise owner of three Flamin' Joe's  restaurants in Spokane, Washington and nine others for their alleged involvement in an Oxycontin ring.

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Expert Advice

Franchise Review Report Released: Good Faith and Penalties Recommended

Australia | simon young | May 17 | franchising, legal
simon young's picture

The Report by Mr Alan Wein (from his Review of the Australian Franchising Code of Conduct conducted earlier this year) has been released today and makes 18 recommendations for improving the franchi

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A Legacy for My Grandchildren

Member | Jay Ricker | May 10 | legal
Jay Ricker's picture

One of the main reasons why we all work hard is to leave something behind for our kids and grandkids. The choices we make today have consequences we can’t even imagine in the future.

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Franchise Succession Planning

Expert | W Michael Garner | May 10 | legal
W Michael Garner's picture

What happens to a franchise if a franchisee passes away? Can the franchise be transferred to a qualified successor? Or will the business automatically be terminated?

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