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Log In / Register | Feb 8, 2012

Investigative News

Racketeering Expert Goes After Coffee Beanery

Member | Janet Sparks | 5:07 pm | food, legal

BALIMORE – Rick Welshans and partner Deborah Williams filed their second amended complaint last month against Coffee Beanery alleging racketeering claims, those normally associated with organized crime. But this time the allegations are asserted by a racketeering specialist, one who has a proven record of protecting clients from business fraud and conspiracy. 

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Ex-Franchisee Liable for Counterfeiting Marks

Member | Janet Sparks | Feb 1 | legal
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.

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Franchisee Group Sues Cold Stone

Member | Janet Sparks | Jan 23 | food, legal
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.

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Bajio Consultant Speaks Out on Award

Member | Janet Sparks | Jan 18 | food, legal

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.

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

Member | Janet Sparks | Jan 17 | food, legal
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.

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Obama Asks for Leaner Govt, Promotes SBA Head

Member | BMM | Jan 14 | franchising, legal
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.

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ABA Forum Presents Top 2011 Cases

Member | Janet Sparks | Dec 31 | legal

BALTIMORE – At this year’s ABA Forum on Franchising conference, themed Flying the Flag of Franchising, Stuart Hershman of DLA Piper and Lee Plave of Plave Koch presented the annual judicial and legislative developments. The legal cases they presented were for the period from July  2010 to September 2011.

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Shannon Liss-Riordan: Petite Sledgehammer

Member | Don Sniegowski | Dec 31 | franchising, legal, people, trends

BOSTON — An attorney in a boutique Boston law firm, Lichten & Liss-Riordan PC, has gone after giants and won.

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Rod Sims: The Regulator

Member | Don Sniegowski | Dec 31 | franchising, legal, people, trends

CANBERRA, Australia — Whether it's Canada's new franchise law that kicked in at the beginning of 2011 in New Brunswick on its way to Manitoba, or America's new Business Opportu

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Operator Hits Avis with Class Action, RICO

Member | Janet Sparks | Dec 24 | legal

ATLANTA – An independent agency operator filed a class action lawsuit against Avis Budget  Group, claiming the company intentionally participated in schemes to defraud its agency operators through its electronic reservation system. Avis is accused of being linked to racketeering activity under federal law.

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Headlines from the 'Net

Frank Zumbo, Deputy Small Business Commissioner.

Member | Ray Borradale | Jan 31 | legal

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.

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Debit-Card Law Has Nasty Side Effect on Low-Priced Merchants

Reporter | Don Sniegowski | Jan 5 | legal, manage, retail

Remember those debit card swipe fees that merchants, franchisees and franchisors successfully pressured Capital Hill to change?

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Obamacare Tough on Businesses

Member | Marilee Hayes | Dec 21 | legal

Three successful businessmen say that Obamacare's length and complexity make business owners wary of expanding and contribute to the country's high unemployment rates, according to John

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Yum Brands Paid No State Taxes Despite $1B in Profits

Reporter | Janet Sparks | Dec 8 | food, legal

An advocacy group has now released results of its comprehensive tax study and one finding is of particular interest to the franchise community.

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McD Changes Tune After Employee Wins

Expert | Paul Steinberg | Dec 5 | legal

The McDonald's worker who was assaulted by two customers was freed after a grand jury refused to indict.

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It's Back, WA Franchising Bill Reintroduced

Member | Ray Borradale | Nov 25 | legal

Ljiljanna RavlichThe West Australian Franchising Bill originally tabled by Liberal Peter Abetz and recently rejected by one Liberal vote has now taken new shape and been re-introduced to Parliament by Labor member Ljiljanna Ravlich.

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Matco Franchisees Allege SBA Loan Fraud

Reporter | Janet Sparks | Nov 15 | legal
TD Bank, Washington D.C. Chinatown
TD Bank, Chinatown, D.C. by Matt Bisanz, wikipedia

Franchisees David Villano III and his father David Villano, Jr. are accusing Matco Tools, with accomplice TD Bank, of devising a secret scheme that allowed the franchisor to sell franchises through fraudulent small business loans.

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Brothers Charged in Dunkin' Donuts Serial Robberies

Member | Dave Tanaka | Nov 15 | food, legal

Two brothers were caught in the act of robbing a Dunkin' Donuts restaurant in Canton, Massachusetts on Saturday night. They were arraigned yesterday.

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Dunkin’ Cracks Down on Franchisees

Reporter | Don Sniegowski | Nov 13 | food, legal

Dunkin' Donuts is suing franchisees in New York and Western Massachusetts to force them to remodel.

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Canada Rules Hyperlinks Not Defamatory

Member | Corbin Williston | Oct 31 | legal

The Supreme Court of Canada struck a blow for internet free speech.

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Expert Advice

EEOC Takes Aggressive Measures to Enforce the ADA

Expert | Mark Fijman | Feb 1 | legal
Mark Fijman's picture

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.

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Zee Association Lawsuit Survives Motion to Dismiss

Expert | Mario Herman | Jan 25 | legal
Mario Herman's picture

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").

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Construction Exchange

Expert | Andy Gustafson | Jan 23 | legal, manage
Andy Gustafson's picture

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.

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