Recent Franchise Legal News

Recent legal news from the franchise industry includes a franchisee lawsuit against BP and the Justice Department going after a tax preparation franchise operation

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Franchisees LoseTim Hortons Class Action Decision

An Ontario Canada Judge refused to certify a class action lawsuit brought by Tim Hortons franchisees against the franchisor.

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Chrysler Franchisees Allowed to Sue U.S. Government

Judge rules that terminated Chrysler dealers can sue United States Government.

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Part 2 Non-Competes from Einbinder and Dunn

Part II of a series on franchise non-competes from Einbinder and Dunn.

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Two Part Series on Non-Competes from the Franchise Lawyers Blog

A two part series on non-competes by Terence Dunn of Einbinder and Dunn begins with part 1. Useful information for franchisors and franchisees.

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Court Refusal to Waive Class Action Can Impact Franchisors

Learn how a recent decision from the Second Circuit Court of Appeals can impact franchisors.

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A Franchisee Gets a Second Chance

Read how a franchisee was able to get a second chance and save his franchise after the franchisor filed bankruptcy.

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North Carolina Franchisee Settles Costly Lawsuit

KFC franchisee settles lawsuit with EEOC for $277,000. Another reason for franchisees to take employee complaints seriously.

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Lawsuit Against MacTools Claims Fraud

A lawsuit against Mac Tools has been remanded back to New Jersey State court. The plaintiffs claim fraud against Mac Tools claiming the distributorship they acquired was in fact a franchise.

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Multi-Concept Franchising from Einbinder and Dunn

This article from franchise law firm Einbinder and Dunn presents an overview of the muti-concept franchise strategy

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Fire House Subs Loses Appeal and Found to Commit TM Fraud

Firehouse Subs was ordered to pay attorneys fees to a small South Carolina restaurant owner ans found to have committed trademark fraud.

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Once Again; Edible Arrangements Lawsuit Allowed to Proceed

Once again Edible Arrangements failed to have a lawsuit filed by its independent franchisee association dismissed.

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Court Establishes Bright Line Test Regarding Motive in Termination Case.

A recent court decision ruled that motive need not be an issue when a franchisor terminates a franchisee. Read the Nixon Peabody article.

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Arbitration in Dispute Resolution in China is Good for Franchisors

An article by Washington DC based franchise attorney, Mario Herman, describes a recent arbitration award in favor of a US firm against its Chinese licensee.

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Tim Hortons Lawsuit Reveals Lots of Inside Info

Tim Hortons is facing a franchise lawsuit that has resulted in the release of some information that is not favorable to the franchisor.

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Massachusetts Coverall Court Ruling: A Warning to Franchisors

A recent decision by the Massachusetts Supreme Court in the Awuah vs. Coverall could have far reaching implications for certain franchisors.

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Small Business Owner Beats Large Franchisor

Read how a local restaurant owner in South Carolina took on Firehouse Subs and won a trademark case after waging a costly three year battle.

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Tim Hortons Franchise Sued by Franchisees

Franchisees sue Tim Hortons for $2 million but don't have all the franchisees on their side.

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DLA Piper Article Warns About Franchise Internet Postings

This article from DLA Piper alerts franchisors and franchisees to be cautious regarding posting information on the Internet that refers to disputes or litigation among the parties.

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A Lawsuit Against Giordano's Franchisees Based Upon Supplier Purchases

Read about a lawsuit by franchisor Giordanos over the issue of franchisees buying from unapproved suppliers.

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Edible Arrangements Lawsuit By Franchisees Allowed to Proceed

A lawsuit by Edible Arrangement franchisees has been allowed to continue based upon a recent ruling.

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National Restaurant Association Seeks Clear Definition of FT/PT Employees

Find out what the National Restaurant Association is up to regarding the new healthcare act, scheduled to begin in 2014.

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The Franchise Lawyer Blog

Visit the Einbinder and Dunn blog, thefranchiselawyerblog.com for informative franchise articles and news.

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National Restaurant Association Sues DOL Over Tip Regs

The National Restaurant Association has filed suit against the Dept. of Labor regarding the new tip credit regulations.

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Franchisors Face Threats of More State Tax Obligations

As States look for added revenue sources the option of taxing franchisor income becomes a real possibility. See this alert from Nixon Peabody.

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Franchisees Sue Owner of "Any Lab Test Now" Franchise

A recent lawsuit filed by franchisees in Miami Circuit Court seeks $10 million in damages from the franchise founder.

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Legal Implications of Technology on the Franchise Relationship

The use of technology and social media in the franchise industry will increase and have an ever increasing impact on franchising in the years ahead. This article by well known franchise attorney Rupert Barkoff explains where we are headed.

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Follow up to Court Decision Regarding Girl Scouts and Franchise Laws

Read this follow up piece from Nixon Peabody regarding an article I blogged last week pertaining to a dispute involving a Girl Scout troop and the application of franchise law in the court ruling.

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Franchise Legal News

This weeks Legal news from around the franchise industry.

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Keeping up with Franchise Litigation and Legal Issues

Three interesting articles involving real estate, Girl Scout Cookies and healthcare.

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Debit Card Swipe Fees Reform Could be Undone

A provision to delay imposing debit card swipe fees on restaurants has been introduced in both houses of Congress. Franchisees operate over 57% of the restaurants in the U.S.

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DLA Piper Reports on Changes to Georgia Franchise Law.

Read this report by DLA Piper regarding changes by the Georgia Legislature to the previously enacted Franchise Bill, that was considered by some to weaken franchisor rights to enforce restrictive covenants.

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Keeping up with Franchise Litigation

Here are two recent lawsuits. One filed by an employee against a Dunkin Donuts franchisee and the other filed by franchisor Jungle Java.

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Franchise Non-Competes and Damages

Read about a recent decision regarding a franchisor claim for damages against it's franchisees for non-compete violations.

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FTC Top Consumer Complaints in 2010: Identity Theft Tops

Identity theft complaints tops list of the most consumer complaints in 2010. After topping the list for the past 11 years, it appears this problem is not going away.

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A Variety of Franchise Legal Actions in 2010

Read about a collection of interesting legal cases in the franchise industry from 2010

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Key Court Decisions Regarding Franchise Arbitration From Nixon Peabody

Court rulings regarding arbitration mean mixed results.

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Franchisee and Franchisor Litigation

Significant franchisor and franchisee litigation cases from 2010.

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Iowa Supreme Court Establishes Nexus for Royalty Taxes from Out of State Franchisors

Read about an important court decision in Iowa as reported by DLA Piper

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Franchisors Need to Protect Their Brand in the Age of Social Media

An article by Craig Tractenberg of Nixon Peabody offers insight into the growth and use of social media and the potential threat to a franchisor's brand name and reputation.

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Operator of Franchise Firm Sentenced to 27 Months in Prison

Judge sentences franchise consultant to 27 month prison term.

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Franchise Litigation Results for 2010

There were some noteworthy cases and resulting decisions regarding franchise litigation in 2010.

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Burger King Loses Round One to Miami Franchisee Represented by Zarco

A recent attempt by Burger King to shut down four locations of its Miami franchisee has an interesting result after Round One. The franchisee is represented by noted franchise attorney Robert Zarco

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Noble Roman's Pizza Wins Summary Judgment in Franchisee Litigation

Noble's Roman Pizza prevails in franchisee lawsuit and states it will pursue counterclaims of $3.6 million against franchisees who brought suit.

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Franchisees Need to Review Ops Manuals AND the Franchise Agreement

When looking to buy a franchise the prospect needs to include the operations manual as part of the due diligence process. The franchise agreement and operations manual are critical documents that guide the operation of a franchise.

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Buying a Franchise From Non- Registration States

Individuals looking to buy a franchise should throughly review the FDD and use a franchise attorney. If the franchisor is in a non-Registration State and not registered in a State be advised that no regulatory authority has reviewed the FDD.

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A Franchisor Bankruptcy and How it Can Impact its' Franchisees

When a franchisor files for bankruptcy protection it can send shockwaves throughout the franchise network. How does this impact franchisees?

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Buying a Franchise. You Better Confirm the FDD is up to Date

If you're looking to buy a franchise be sure to have your franchise attorney confirm that the FDD is in compliance.

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If You're Buying a Franchise You Better Use a Franchise Attorney

If you're considering buying a franchise you had better use the services of a qualified franchise attorney. Today's franchise documents are far too complex for the ordinary lay person to understand.

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Century 21 Class Action Lawsuit to Proceed

A class action lawsuit filed by a number of Century 21 franchisees will proceed.

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Important Tips for Franchisee Validations

Evaluating a franchise opportunity? Here is some insight into how to measure the feedback from existing and former franchisees.

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An Example of Rapid Franchise Growth Leading to Problems

Taco del Mar had 5 years of rapid franchise growth and over 200 locations failed. The franchsior re-sold many of the locations, which can be considered "churning." Now its bankrupt.

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Grilled in Court, KFC Prez Denies He's Anti-Crispy

Yum Brands has been sued by a group of KFC franchisees and the National Ad Council and a Kentucky based franchisee of Long Johns Silvers and A&W resturants. Both actions center around the issue of advertising. Perhaps they should contact the CEO of Firehouse Subs.

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Edible Arrangement Franchisees Sue over Mandates

A group of franchisees have sued its franchisor, Edible Arrangements over new mandates required by the franchisor. Edible Arrangements has over 500 franchisees throughout the Country.

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