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Lawsuit allegation and claim from franchisee against the franchisor

Rhea Lana Allowed to Challenge DOL’s Action that Its ‘Volunteers’ Are Employees

WASHINGTON – After a three-year legal battle with the Department of Labor, Rhea Lana Inc., a consignment store franchise, has received a favorable ruling from an appeals court allowing the franchisor to challenge the DOL's finding that the company's "volunteers" are employees who must be paid for their work.

Hooters Sues Longstanding Franchisee for Abandoning Restaurants


ATLANTA – Hooters of America last week sued a 20-year veteran franchisee for abandoning two of its twelve restaurants on the east coast, one in such deplorable condition that customers sent Hooters corporate detailed complaints about the store's filth, stench and buckling floor slates.

Domino's Pizza: NY AG's Lawsuit Demeans Role of Small Business Owners

New York Attorney General Eric T. Schneiderman filed suit recently against franchisor Domino's Pizza [DMZ:NYSE] as a joint employer, saying, "We've found rampant wage violations at Domino's franchise stores.

Blind Man Files Class Action against McDonald’s over Drive-Thru Policy

McDonald's drive-thru menu boardOAK BROOK, Illinois – Scott Magee, blind from macular degeneration, filed a putative class action lawsuit against McDonald's last week.

AG Lawsuit Alleges Domino’s Joint Employer with Franchisees in Stealing Worker Pay

Schneiderman announces Domino's lawsuit (Photo: New York AG Website)

NEW YORK – Attorney General Eric T. Schneiderman is going after Domino's Pizza with a vengeance, alleging the fast food company underpaid workers by over a half million dollars at ten franchise stores.

7-Eleven Fires Independent Panelists Determining Worker Underpayment

SYDNEY – After two hand-picked independent panelists made the decision that 7-Eleven must pay 400 store employees up to $400,000 each in back pay, the corporate office halted the process last week, fearful that the total amount could skyrocket.

Lots of Meat Left on the Bone for Franchisees & Franchise Lawyers

During my preparation of an analysis of a very recent New Jersey federal court decision involving a gasoline franchise dispute (South Gas v. ExxonMobil,  2016), I was sidetracked by a fourteen year-old franchise decision by the same court -- Beilowitz v. General Motors Corp., 233 F. Supp.2d 631 (D.N.J. 2002).

Edible Arrangements Accused of Illegal Text Spamming

A sign outside at an Edible Arrangement franchise

WALLINGFORD, Conn. – A putative class action lawsuit was filed last week against Edible Arrangements claiming the franchisor sent mass unauthorized automated text messages to consumer cell phones in marketing its fruit and candy bouquets, which is a clear violation of federal law.

Two Dickey’s Franchisee Cases Stayed Pending Arbitration Decision

An abandoned Dickey's barbecue. photo/sniegowski

BALTIMORE - A federal court in Maryland stayed two cases brought by franchisees against Dickey's Barbeque stating that the pending arbitration decision in Trouard v. Dickey's Barbeque Restaurants, Inc. may preclude the need for litigation.

Court Says Jimmy John’s Franchisee Violated NLRB Act in Firing Employees

Jimmy John's workersMINNEAPOLIS – An appeals court last Friday affirmed a ruling by the National Labor Relations Board that a Jimmy John's franchisee illegally fired workers who launched a poster campaign against its sick leave policy, a protected concerted activity.