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Legal news that affect small businesses and franchises

Will Joint Liability Result in Less Franchisee Freedom? Really?

A franchise can be a great small business opportunity for entrepreneurs. For a first-time business owner, a franchise may avoid some of the risks associated with a start-up. Instead of starting from scratch, a franchisee can rely on an established brand name and business model. At the same time, a franchisee also has some independence over the daily operations of his or her business.

California Bar Announces Franchise Specialty Exam

SAN FRANCISCO – The state bar of California wants attorneys to know that they can now register for the state bar exam for franchise and distribution law. California is the first and so far only state to certify specialists in the area of franchise and distribution law.

President Signs Bill for Quick Resumption of SBA 7(a) Loans

President Barack Obama, just the day after the House passed H.R.2499 and sent it to his desk, signed the bill into law this morning.

Subway’s “Jared” Engulfed by Media Storm

INDIANAPOLIS - While the FBI continues its investigation of Jared Fogle, Subway's pitchman for the past 15 years, surrounding his Fogle Foundation director being arrested for child pornography, the media is having a heyday with reporting latest developments.

ARCO AMPM Franchisee Bellwether Jury Trial Begins

So it begins...after a 5-year struggle to get British Petroleum to listen and treat its AmPm franchisees fair, it has all come down to the trial of the Century.  The bellwether (jury test trials) has begun with first four brave and honorable franchisees going to a jury trial. 

FBI Raids Home of Subway’s Jared in Child Porn Sting

Jared Fogle
Jared Fogle pitches for Subway in Sep 2014 at SXSW, Austin. Photo: cc Anna Hanks

INDIANAPOLIS – This morning FBI agents raided the affluent home of Jared Fogle, the famous Subway spokesman, in connection with its child pornography investigation. Federal authorities began removing documents, computers and DVDs, taking them out to a large mobile forensics lab parked in his driveway, all while his two children were in the house.

Are Franchise Bosses Cheating Their Workers?

PBS Newshour reports that if employees work more than 40 hours a week, they are supposed to get overtime. But there is a loophole.

Franchisee-Franchisor Feud Continues with New Lawsuit

A franchisee-franchisor relationship gone bad continues to play out in court.

Woes Worsen for McDonald’s Largest Franchisee Worldwide

Labor protests against McDonald's franchise in Brazil, Arcos Dorados
Workers protest against McDonald's in Sao Paulo, Brazil after unions filed lawsuit. photo/Berlin Rosen

NEW YORK –Arcos Dorados Holdings Inc., McDonald's largest franchise owner worldwide in terms of systemwide sales and number of restaurants, is in a mess of trouble. Not only did the publicly traded company declare this week that its first-quarter loss was widening, it also revealed that it is out of compliance with McDonald's Corporation's franchise agreement covenants.

Ex-Smashburger CEO Lawsuit Dismissed, Hardly Over

DOVER, Del. - After the former Smashburger CEO filed a lawsuit last July against the chain and owners Consumer Capital Partners for deceptively cheating him out of millions of dollars in stock, a Delaware court granted Smashburger's motion to dismiss the lawsuit last December.