The Franchise Owner's most trusted news source

Log In / Register | May 28, 2017
Lawsuit allegation and claim from franchisee against the franchisor

Judge Orders Curves Franchisees to Texas, Enforces Statute of Limitations

ST. LOUIS - After 33 franchisee entities filed a 165-count complaint against Curves International alleging the franchisor made misrepresentations that induced them to buy their franchises, a federal judge dismissed 95 claims due to the statute of limitations. The remaining surviving claims were transferred to Texas, the exclusive forum agreed to when franchisees signed their franchise agreements.

Judge Chastises McDonald’s for Playing Games in ‘Joint Employer’ Case

Chess by Thomas Hawk
Chess photo by Thomas Hawk

NEW YORK - A federal judge last Friday accused McDonald's Corporation of "playing games" in order to avoid complying with a subpoena issued by the National Labor Relations Boards. She then gave the franchisor 30 days to hand over thousands of employee emails the federal agency is requesting to determine if McDonald's should be held liable for labor violations by its franchisees.

Judge Finds Evidence Culver's Discriminated against Franchisee

A federal judge has denied burger and frozen custard chain Culver’s motion to throw out a case brought by a franchisee, holding that there is sufficient evidence of intentional discrimination that the case should proceed to trial.

Franchisor Accused in Suit of Hiding Kickbacks

Mike Bendfeldt and Betty Muhr-Bendfeldt, who ran 18 Window World locations in 10 states, are charging in a federal court case that their franchisor, Window World, hid from them the kickbacks it was receiving from "sole supplier" and now co-defendant Associated Materials LLC.

Employees May Pursue California Labor Code Claims against McDonald’s on Theory of Ostensible Agency

SAN FRANCISCO - A federal court in California issued a ruling in the pending employee class action, Ochoa v. McDonald's Corp. et al. in September. Its finding was that the employees of a McDonald's franchisee may pursue claims at trial against McDonald's on the theory that the franchisee is McDonald' ostensible agent.

Franchisees Allege Pro-Cuts and Regis Made Bogus Store Earnings Claims

MINNEAPOLIS - Franchisees in Minnesota have filed a lawsuit against Pro-Cuts sports-themed hair care salons and parent Regis Corporation that claims the firms made illegal financial performance representations when selling the Pro-Cut franchise opportunity.

Hotel Sexual Servitude Case to Test ‘Joint Employer’ Ruling

CHICAGO - A Fairfield Inn housekeeper, an African-American single mother of three, two with disabilities, has filed a lawsuit against an assistant manager of the Marriott hotel claiming he forced his sexual advances on her.

Not only is the now-terminated employee holding franchisee TMI Hospitality Inc. responsible, she is also naming Marriott International Inc. as joint employer with the franchisee, due to its direct and indirect control over essential working conditions at the hotel.

Subway Admits to Serious Complaint of Jared’s Interest in Child Sex

After denying allegations that it received formal criticism related to its pitchman Jared Fogle's request for sex with children, Subway has now revealed it did received one "serious complaint" in 2011.

Fogle Foundation Head Formally Charged on Child Sex Exploitation, Conspiracy with Jared

INDIANAPOLIS – United States Attorney Josh J. Minkler announced on September 1 that Russell C. Taylor had been formally charged on 12 counts of child exploitation involving 12 minor children in Indiana. The former CEO of the Jared Fogle Foundation was also charged with one count of distributing and receiving child pornography through an alleged conspiracy with Jared Fogle, longtime pitchman for the Subway sandwich chain.

Subway Ignored Early Signs of Jared’s Desire for Sex with Kids

Former Florida franchisee Cindy Mills has now come forward to tell her story of how Jared Fogle, Subway's pitchman for the past 15 years, related to her seven years ago his sexual interest in children.