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Cases, news, issues and legal opinions impacting franchise law

New York AG Settles with Jimmy John’s to Stop Non-Compete Clause in Hiring Packets

New York's attorney generalNEW YORK – Attorney General Eric T. Schneiderman announced last Wednesday that Jimmy John's Gourmet Sandwiches agreed to stop including sample non-compete agreements in the employment material it sends to its franchisees in hiring workers. As part of the agreement, Jimmy John's has also agreed to inform its franchisees that the Attorney General has concluded that the non-compete agreements are unlawful and should be voided.

Exxon's Zone Pricing Exerts Too Much Control over Franchisees

A recent case decided by the United States District Court for the District of New Jersey may breathe new life into the New Jersey Franchise Practices Act and the Robinson-Patman Act. South Gas, Inc. v. Exxonmobil Oil Corp., 2016 WL 816748 (D.N.J. February 29, 2016).

Failed Subway Pitchman ‘Jared’ Loses Appeal for Lesser Sentence for Child Sex Charges

Jared Fogle serves Subway Photo: cc Anna Hanks, Sept. 30, 2014

INDIANAPOLIS – A federal appeals court today upheld the 15-year 8-month prison sentence handed down to former Subway pitchman Jared Fogle last year on charges of child pornography and illicit sexual conduct with a child.

Subway Franchisee Freed from United Arab Emirates Prison on Charges of Supporting Terrorists

Photo: UAE-US Relations

WASHINGTON – After being imprisoned for almost two years, a successful real estate developer and his son, a Subway franchisee, both citizens of the United States, have been freed from a prison in the United Arab Emirates.

State Regulators Order Dine In 2Nite Delivery Meals to Stop Violating Franchise Laws

SAN DIEGO – Dine In 2Nite North America, LLC, described by the franchise company as "the first subscription based catering franchise, delivering freshly prepared gourmet meals for $10 per day," has now been caught by two state regulators, Washington and California, of selling franchises without being registered and other violations.

U.S. Lawns Not Liable as Joint Employer under Title VII

ROANOKE - A federal court in Virginia ruled last March that franchisor U.S. Lawns was not a joint employer of its franchisee after an employee of the gg franchise owner sued both companies for gender discrimination, harassment, and retaliation in violation of Title VII of the Civil Rights Act of 1964.

LearningRx Objects to Blue MauMau Article

LearningRx pamphlet given out on Thurs 5/26/2016
Image from LearningRx pamphlet given out on May 26

COLORADO SPRINGS - Tanya Mitchell, LearningRx's vice president of franchise development for the past 11 years, and daughter of CEO Dr. Ken Gibson, took issue with Blue MauMau's recent article and its title, "LearningRx 'Brain Training' Franchise Settles with FTC for False Claims."

LearningRx 'Brain Training' Franchise Settles with FTC for Alleged False Claims

Federal Trade Commission building, Washington, D.C.
FTC building, Washington, D.C. (Photo by BMM)

COLORADO SPRINGS – The Federal Trade Commission has reached a settlement with LearningRx and its chief executive officer, Dr. Ken Gibson. The action stops the franchisor from making false and unsubstantiated claims that it can improve serious health conditions such as ADHD, autism, concussions and Alzheimer's disease. The FTC requires the firm pay a $200,000 fine.

Uber Agrees to $100M to Settle Class Action Lawsuits with Drivers

Uber protest in Portland (photo/Aaron Parecki)

SAN FRANCISCO - Uber agreed last week to settle two class action lawsuits for $100 million. The legal actions were filed by drivers in California and Massachusetts to determine if they could be reclassified as employees instead of independent contractors, to receive benefits they lack now. Had the lawsuits proceeded to trial and Uber had lost, the outcome could have cost the firm billions in employee expenses.

Meineke Franchisee Jailed for Not Paying Royalties

(Photo:D Sniegowski)

CHARLOTTE, N.C. – After terminated Meineke franchisees ignored a court default judgment that directed them to "cease and refrain" from operating their auto shop in Nevada, after bragging to customers that corporate "can't do anything about it," a district judge determined that contempt sanctions of imprisonment and fines of $1,000 a day were necessary.