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Log In / Register | Jul 16, 2018

Franchisor Blunders, No Wonder Buyers Don’t Read FDDs

The Franchise Disclosure Document (FDD) should be seen by franchisors, their attorneys and state and federal regulators as the most valuable tool for perspective buyers prior to making their decision as to where they want to invest their money into a franchise.

Quiznos' Attorney Shows Lack of Transparency in Settlement

On the day Quiznos filed for Chapter 11 bankruptcy, outside counsel Fredric ‘Ric’ Cohen declared to a popular magazine for franchising readers, “Vindication. It’s vindication,” seeming to say that his client was exonerated in settling the last 13 franchisee lawsuits.

Smashburger Basks in Glow of Forbes Top 25 Accolade. Really?

Smashburger has once landed on Forbes Top 25 list of America’s Most Promising Companies, this time without even applying for consideration.

Is Coffee Beanery Unlawfully Selling Franchises in Maryland?

The same week the Coffee Beanery settled an eight-year lawsuit in favor of Maryland franchisees for $80,000, a news report came out stating a new franchise had opened in the Ocean City area of Berlin, Maryland. The fact that Coffee Beanery has not been registered in the state to sell franchise since 2007 raises certain questions.

Best Western to Stand Trial for Guest Becoming Ill at Franchisee Hotel

A Best Western hotel guest who became ill at a franchisee location has been successful in taking the franchisor to trial, alleging the hotel chain was responsible for an outbreak of Legionnaires' disease.

Class Actions for Subway False Footlong Ads Now Centralized

Seven putative class action lawsuits against Subway Sandwich Shops, Inc. over misleading advertising of its "Footlong" sandwich have now been centralized in the Eastern District of Wisconsin. Customers claim the size of the sandwich does matter. It is not the twelve inches the sandwich chain advertises it to be. It is one inch shorter.

7-Eleven Franchisee Gala, a Time for Franchisees to Unite and Fight

As 7-Eleven franchisees begin their 38th National Convention in Las Vegas on Sunday, the buzz will not be on Slurpees, cigarettes and sodas. Members of the National Coalition of Associations of 7-Eleven Franchisees have bigger issues on their minds, that of criminal indictments and corporate litigation against their fellow members.

Investors Await SEC Action on mUrgent

Franchisors and suppliers at this year’s International Franchise Association Convention and Exhibition can breathe a sigh of relief knowing that mUrgent Corporation will not be selling its services. We can only assume that IFA blocked its past “Preferred Email Marketing Vendor from 2007 to 2010” from exhibiting after Blue MauMau’s reports on the firm’s securities fraud violations. California federal court issued an order in March 2012, resulting in a $21 million judgment by the federal government.

Remembering Pioneer Tom Murphy of Continental Franchise Review

Franchise consultant and founder of the Continental Franchise Review newsletter Tom Murphy died a week ago last Saturday at age 93, after a short illness. Having known Tom for almost 30 years, I seldom imagined a time that he would no longer be a part of my life in franchising.

Arguments Shed Light on UPS Decision

Last week I reported on the Court of Appeals ruling in Samica v Mail Boxes Etc., affirming the district court decision in granting summary judgment to the franchisor. In reading the decision, I was baffled as to how 200 franchisees, who have been battling their issues in court for the past five years, could get it so wrong.