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Cases, news, issues and legal opinions impacting franchise law

Child Care Franchisee Wins Non-Compete Case by Confusing Everyone

In The Art of War, Sun Tzu states, inter alia, that "The whole secret lies in confusing the enemy, so that he cannot fathom our real intent." Sometimes, but not often, this strategy, if used by a franchisee, works in combatting the enforcement of a post term restrictive covenant following a franchise termination.

Franchisee’s Wrongful Termination Claim Is Rejected for Failure to Obtain Franchisor Consent to Its Franchise Purchase

In a recent case in the United States District Court for the Eastern District of Wisconsin, a federal court reversed its own initial decision in which it had upheld a franchisee's wrongful termination claim against its franchisor. Tex. Ujoints, LLC v. Dana Holding Corp., 2015 U.S. Dist. LEXIS 70468 (E.D. Wis., May 30, 2015).

‘Jared’ Accomplice Russell Taylor Sentenced to 27 Years for Child Pornography

INDIANAPOLIS – The former head of a charitable foundation started by former Subway pitchman Jared Fogle was sentenced to 27 years in federal prison for producing child pornography that resulted in a criminal case against Fogle.

Developer Heads to Jail for Stealing from Subway Founder Fred DeLuca

A prominent land developer in Delray Beach, Florida, will begin a six-month prison sentence on Monday for stealing more than $1 million from Subway co-founder Fred DeLuca, who died last September after a two-year battle with leukemia.

Subway’s Ex-Pitchman ‘Jared’ Sentenced to More than 15 Years on Child Sex Charges

INDIANAPOLIS – Following yesterday's four-hour hearing, Judge Tanya Walton Pratt issued her sentence for Jared Fogle, the disgraced pitchman for Subway sandwich chain, on charges of child pornography and traveling across state lines to have sex with minors. She announced that Fogle would remain behind bars in federal prison for 15 years and eight months and, upon his release, he would endure a lifetime of supervision.

UPS to Pay $4.2M to Settle Whistleblower Claims of Delivery Fraud

Department of Justice Attorney General Loretta Lynch in Briefing Room. Photo/Department of Justice
Department of Justice Attorney General Loretta Lynch in Briefing Room. Photo/DoJ

WASHINGTON, D.C. – United Parcel Services agreed last week to pay $4.2 million to settle a whistleblower's lawsuit claiming the shipping firm falsified records on state and city government packages to avoid paying out refunds to those agencies.

Wine & Canvas to Pay Franchisees Attorney Fees for Forcing Undue Litigation

INDIANAPOLIS - A federal court in Indiana ruled in favor of franchisees, ordering Wine & Canvas to pay $175,882.68 in attorney fees. The judge determined that the franchisor admittedly sued the franchisees just so they would incur excessive legal fees in fighting against the company's failed trademark infringement claims and be forced to close their businesses.

EEOC: Don’t Terminate that Employee because Customers Don’t Like His Religion

Under a heightened standard imposed on employers by the United States Supreme Court in EEOC v. Abercrombie & Fitch Stores, Inc., employers need to be aware of a new standard in religious discrimination of employees.

IFA's Appeal against Seattle’s $15 Minimum Wage Law Rejected Again

Seattle. Photo by Howard Ignatius

SEATTLE - The U.S. Ninth Circuit Court of Appeals last week denied the International Franchise Association's arguments against Seattle, that if granted would have blocked portions of the city's new $15 an hour minimum wage.

Felon Inmates Outraged at Jared Fogle Plea Deal

While former Subway pitchman Jared Fogle awaits his sentencing hearing on November 19, 2015, after pleading guilty to charges related to child sex and pornography, two felon inmates are expressing their outrage at the plea deal he was allowed to make.