The Franchise Owner's most trusted news source

Log In / Register | Aug 16, 2018
Lawsuit allegation and claim from franchisee against the franchisor

Graphic Sexual Harassment Charges Filed against IHOP, Applebee’s Franchisees

Two of DineEquity's restaurant chains, IHOP and Applebee's, are at the center of sexual harassment complaints that were filed by sixty employees of franchised restaurants in eight states. They have filed federal lawsuits against the franchisees. According to one media report, this is the highest number of federal sexual harassment lawsuits filed against any restaurant chain.

Franchisee Seeks $9.5M, Alleges Roasting Plant Used Fake Representations to Defraud

A franchisee of two Roasting Plant coffee locations in the Detroit area filed a federal lawsuit last week seeking $9.5 million, alleging the franchisor failed to provide him the required-by-law state and federal disclosure documents prior to his purchase, and committed "racketeering activities" throughout its fraudulent scheme in selling franchises.

Judge Allows NLRB Counsel Two-Month Stay in McDonald’s Joint Employer Case

Photo by Geraldshields11, Wikipedia

The general counsel of the National Labor Relations Board has been granted a two-month stay as the enduring trial continues over whether McDonald's Corporation and its franchisees should be ruled as joint employers related to labor law violations.

Washington State AG Sues Motel 6 for Giving Guests’ Personal Data to ICE Agents

Washington state's attorney general has filed a lawsuit against Motel 6, alleging the national hotel chain instigated a corporate policy in 2015 of providing immigration enforcement agents with guests' personal data based on their national origin, including those with familiar Latino names, to determine if they were wanted by the division of Homeland Security.

Franchisees Vow to Skip 7-Eleven’s Giant Convention, as Lawsuit Progresses

Presidents of 43 franchise owners associations, representing 7,000 franchised locations in the U.S., sent a strong message to 7-Eleven Inc. last November, vowing they will not attend the franchisor's giant convention and trade show in February, known as the 7-Eleven Experience, in protest of its harsh treatment of store owners.

Liberty Tax Investors File Suit to Oust John Hewitt from Board amid Sex Scandal

Liberty Tax ServiceWith tax season fast approaching, Liberty Tax Inc. investors are scrambling to rid the national tax preparation franchise company of its co-founder, now chairman of the board, John Hewitt, alleging his romantic encounters with at least 10 female employees, and having sex in his office, is seriously damaging the company.

Arbitrator Rejects Tilted Kilt's Damage Claim as 'Disproportionate, Unreasonable, Unconscionable and Grossly Oppressive'

In a recent post on this site, I argued that (absent a specific agreement) there is no general requirement that the Awards issued in arbitration must remain secret and that:

Massage Envy CEO Responds to Media Frenzy Nightmare regarding Sexual Assault Claims at Franchisee Spas

A major media frenzy last week exposing 180 sexual assault lawsuits, police reports and state board complaints by customers against the Massage Envy chain, alleging therapists crossed the line into molestation while performing massages, prompted the franchise company to retort in an effort to protect its brand. Some question why the company did not respond immediately.

Massage Envy Chain Gropes with Client Sexual Assault Lawsuits

More than 180 women have now filed sexual assault lawsuits, police reports, and state board complaints against the massive Massage Envy franchise chain, which includes franchisees, their employees and, some cases, the billion-dollar company itself, Massage Envy Franchising, operating under the umbrella of private equity firm Roark Capital.

Inquiry Finds Fired Liberty Tax CEO Likely Had Sex in His Office, Sexual Escapades with Staff, Franchisees

Liberty Tax ServiceAfter Liberty Tax's board of directors fired founder and CEO John T. Hewitt in September, the franchise company's human resources division received numerous complaints about his risqué sexual behavior, including that he was heard having sex in his office during work hours and was romantically involved with employees and franchisees. The company dug deeper into the matter with an investigation.