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Log In / Register | Feb 17, 2018
Cases, news, issues and legal opinions impacting franchise law

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:

FTC Smacks The Entrepreneur’s Source over Buyer Deception

Terry Powell, founder of The Entrepreneur's Source talks about smart investing
Founder Terry Powell talks about franchise buying on YouTube

WASHINGTON, D.C. – While franchise brokerage/consultant firm The Entrepreneur's Source (TES) promotes its image as "helping people improve their lives," the Federal Trade Commission (FTC) found otherwise after launching an investigation into the firm's business practices regarding privacy and security.

UPS Charged $25M on Whistleblower Suit for Overcharging Feds

UPS truck and the UPS Store in NYCWASHINGTON, D.C. – The Department of Justice declared this week that United Parcel Services (UPS), the world's largest package shipping company, agreed to pay $25 million to resolve allegations of overcharging. UPS was accused of submitting false claims to the federal government in connection with its delivery of Next Day Air overnight packages.

NLRB Declares Franchisor Freshii Not a Joint Employer

On April 28, 2015 the National Labor Relations Board (“NLRB”), Office of the General Counsel, issued an Advice Memorandum to the NLRB’s Chicago area regional office finding that a restaurant franchisor and its Chicago area development agent are not joint employers with a Chicago franchisee.

NLRB Rules Freshii Not Employer of Franchisees

As franchisors and their attorneys brace themselves for rulings from the National Labor Relations Board on whether franchisors can be found to be a joint employer with their franchisees, they received a favorable decision this week. The answer from the NLRB's Division of Advice opined Freshii, a health food restaurant chain, was not a joint employer.