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Cases, news, issues and legal opinions impacting franchise law

Franchisor Hit Hard for Trying to Steal Pentagon Franchise

ARLINGTON, VA. – A former franchisee of a restaurant located in the Pentagon received a final award of $530,000 after the arbitrator ruled that franchisor FoodNet Franchising Inc. unlawfully terminated the franchise agreement without cause and without giving the franchisee the right to cure. The award compensates the franchisee partly for losing the sale of its business due to a criminal investigation by the government.

In Browning-Ferris NLRB Gives Workers Victory for Labor Day Celebration

BFI was bought out by Allied Waste
Browning-Ferris waste bought in 1999 by Allied Waste. Photo:Ildar Sagdejev

WASHINGTON, D.C. – The International Brotherhood of Teamsters (IBT) is no doubt celebrating this Labor Day with what it considers its most dramatic victory during the Obama years, receiving a ruling last week from the National Labor Relations Board in the Browning-Ferris case.

NLRB Denies McDonald’s Appeal on Joint Employer Order
A recruiting sign on the wall of a franchised McDonald's. photo/bmm

NEW YORK – The National Labor Relations Board denied McDonald's Corporation's request for a special appeal on claims that it is a "joint employer" with its franchisees.

Jared Fogle Pleads Guilty to Child Sex, Pornography

Subway ex-spokesman Jared Fogle
Jared Fogle serves Subway Photo: cc Anna Hanks, Sep 30, 2014

INDIANAPOLIS – On Wednesday, the United States of America and the U.S. Attorney for Southern Indiana entered a plea agreement with Jared Fogle, spokesman for Subway sandwich chain, on two counts of child pornography. Fogle plead guilty, waiving his rights to indictment by a grand jury.

Papa John’s Warns Shareholders of Likely $12.3 Million Settlement; Now Done

LOUISVILLE – Reporting its second quarter results, Papa John's International, Inc. (NASDAQ: PZZA) touted that its "better ingredients, better pizza" promise is resonating more than ever with loyal customers.

Papa John’s Franchisee Arrested; To Pay $800K for Stealing Worker Pay

New York Attorney General applies criminal charges to Papa John's franchisee
NY AG announces criminal charges against Papa John's franchisee. Photo:YouTube

NEW YORK – The New York Attorney General's Office and the Department of Labor's Wage and Hour division have announced last week charges against a nine-store Papa John's franchisee in The Bronx. They have ordered him to pay $800,000 for back wages and overtime owed to current and former workers, and serve time in jail.

Steak ‘n Shake Granted Summary Judgment in Colorado

DENVER – Last month a Colorado district court granted Steak 'n Shake's motion for summary judgment on claims of breach of contract, trademark infringement, unfair competition, and injunctive relief against two terminated franchisees' counterclaims for breach of contract and fraud.

FDA Extends Deadline for Menu Labeling

The Food and Drug Administration has announced that it is delaying the compliance date of the menu labeling rule by one year. Covered establishments will now have until December 1, 2016 to comply with the rule.

Franchisor Regis Held Liable for Predecessor’s Debts

The Third Circuit Court of Appeals has affirmed that hair styling salon conglomerate Regis Corporation is liable for damages awarded against its predecessor, Trade Secret, Inc., in an arbitration action brought by a franchisee of the former owner.

NRA Says IRS Proposal Would Force Exorbitant Costs on Restaurants

(Washington D.C.) The National Restaurant Association released the following statement last week Thursday regarding the House’s introduction of the Commonsense Reporting and Verification Act of 2015, which affects Obamacare (Affordable Care Act) reporting requirements: