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Cases, news, issues and legal opinions impacting franchise law

Subway Franchisee Settles EEOC Claims over Firing HIV-Positive Worker

Image: EEOC

INDIANAPOLIS - A Subway franchisee has now settled a 2015 discrimination lawsut brought by the Equal Employment Opportunity Commission for firing a worker who was HIV positive. 

Subway Ex-Pitchman Jared No Longer Living the Good Life

Photo: Federal Correctional Institution, Englewood, CO.

ENGLEWOOD, Colorado – After a federal judge sentenced Jared Fogle on November 19, 2015 to 15 years, 8 months on charges of possessing child pornography and traveling across state lines to pay for sex with minors, the former Subway pitchman is finding life in prison not so easy.

IFA Boots Consultant Christopher Conner Out

Chris Conner Image from YouTube video

WASHINGTON D.C. – The International Franchise Association has now terminated the membership of franchise consultant Christopher J. Conner and his firm Franchise Marketing Systems, following the California state regulator's "unprecedented enforcement action" against both entities last week. The Commissioner banned Conner and his firm from engaging in the business of franchising in California for the next five years.

Jury Awards Nearly $500,000 to Taco Bell Workers for Unpaid Meal Breaks

IRVINE, California — A federal jury last week ruled in favor of 134,419 Taco Bell restaurant workers, finding the fast-food chain had underpaid them for meal breaks, a violation of California law. The "special verdict" filed on March 9, 2016, awarded the employees $495,913, stating that Taco Bell had a standardized company-wide policy that underpaid premiums to staff for meal periods.

Buffets LLC Files for Bankruptcy Again, Revenues and Lawsuit to Blame

HOLLYWOOD PARK, Texas – For the third time since 2008, Old Country Buffet parent company, Buffets LLC, has filed for Chapter 11 bankruptcy protection from creditors, blaming not only disappointing revenue but also litigation that proved costly to the company.

California Commissioner Bars Christopher Conner from Franchising until 2021!

FMS exhibits at 2016 IFA Convention.Conner (left)

LOS ANGELES – The California Department of Business Oversight entered an agreement yesterday with franchise consultant Christopher J. Conner, Conner and Associates d/b/a Franchise Marketing Systems, banning him and his companies from offering or selling franchises until January 1, 2021.

Judge Rules AAMCO Franchisee Did Not Violate 'Unduly Burdensome' Non-Compete Agreement

AAMCO Transmissions, photo by Blue MauMauPHILADELPHIA – A federal judge ruled this month that former Florida AAMCO franchisees did not violate their non-compete agreement when they left the franchising chain after 21 years and opened their own transmission shop under a new name 90 miles away.

Terminated Franchisee Beats the Odds, Sidesteps Injunction

In a recent decision by the United States District Court for the District of Colorado, the Court denied the plaintiff franchisor’s motion for a preliminary injunction, showing that, in rare situations, it is possible for a terminated franchisee to escape the lethal injunctive pincers of the Lanham Act, the federal law that is frequently relied upon by franchisors to shut down a franchisee’s operations during termination disputes.

Subway Settles, Will Ensure ‘Footlongs’ Are Foot Long

Subway sandwich photo by powerplantop
Photo by James

Does a class of sandwiches, the footlong, have to be a foot long or more? The answer, at least for Subway sandwiches, is that they soon will be, thanks to a settlement of a class action lawsuit that began with an Australian teenager in 2013.

Courts, Not Arbitrators, to Decide How Class Arbitration Is Governed

The U.S. Court of Appeals for the Third Circuit issued its "precedential opinion" last month stating district courts can make the decision as to whether arbitration clauses permit class action arbitration.