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Log In / Register | Aug 14, 2018

Multi-Brand Franchisee Resentenced to 5 Years in Prison, $5.5M in Restitution for Bank Fraud

The Department of Justice, U.S. Attorney Office for the Western District of Missouri, announced last week that a former owner of multiple franchised restaurants was resentenced for a more than $5.5 million bank fraud scheme, increasing his initial one-year, one-day sentence to five years without parole.

Chocolatier Allegedly Able to Charge $9 a Bar by Misleading Customers

Mast Brothers chocolate
Mast Brothers chocolate / photo by Christine Rondeau, Flickr

Mast Brothers has been garnering some unwelcome publicity for their alleged "fraud" of holding that their chocolate has always been bean-to-bar, meaning that they have been made from scratch, starting with cacao beans.

Franchisees Allowed One Claim against The UPS Store on Charges of “Over-dimensioning” Packages and “Upselling” Services

NEW YORK – In a complex litigation between franchisee and franchisor, a federal judge has now dismissed all but one claim brought by store owners against franchisor The UPS Store and its parent company United Parcel Services, Inc.

9th Circuit Upholds Termination of Century 21 Franchisees

Century 21
Photo by Century 21

Madison, NJ - The Ninth Circuit Court of Appeals affirmed a lower court's decision that Century 21 Real Estate should be allowed to terminate franchisees for not paying required fees and payment on a promissory note, and for abandoning one of their four franchise locations.

Obama Moves to Stem Credit Card Data Theft and Fraud

In the wake of massive credit card data breaches that have left both businesses and consumers skittish, President Obama on Friday signed an executive order directing the government to lead by example in securing transactions and sensitive data.

Franchisee Sues for Lack of Fair Dealing, Marriott Settles

Marriott franchisee Laurence Geller

Photo of Marriott franchisee from CNBC video stream

It seems that not all is clean and good at Marriott. CNBC explores the Marriott Empire in its hour-long "Behind the Closed Doors of Marriott."

The UPS Store Franchise System Is Massive Fraud, Say Former Franchisees

The UPS Store in Manhattan, New Franchise Owner

The UPS Store in New York City. photo/ps

The recent collapse of The UPS Store network in Manhattan caused much discussion. Now a stunning federal lawsuit alleges that fraud is at the very basis of the franchise system viability: an existential threat to the UPS brand itself.

Hotel Franchisee Imprisoned, Owes $420 Million

A father & son team now in prison have been ordered to pay a $265 million judgment, that is now around $420 million with interest.

Fraudster Instant Tax Service Turns into Great Tax LLC

Instant Tax Service sign in an American Midwest city. Photo by Blue MauMau
Instant Tax Service sign. Photo by BMM

DAYTON, Ohio – A district judge ruled that the evidence of fraud and deception perpetrated by Instant Tax Services CEO Fesum Ogbazion was so overwhelming that he and his company were permanently barred from the tax-return preparation business. He said his order "is necessary to protect the public and the Treasury."

The Great Conflict of Protecting Markets or Franchisees

We are recovering from a crisis of market collapse caused in major part by abuse on the part of banks and investment houses. From mortgage backed securities where the mortgage portfolio was of extremely low quality to derivatives called credit default swaps, the Federal Reserve and the SEC enforcement division were asleep at the switch – called deregulation – and everything hit the fan.