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Cases, news, issues and legal opinions impacting franchise law

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.

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.