Mealey's Franchise

  • March 06, 2024

    English Justice Denies Summary Judgment As To Coverage Issue In COVID-19 Suit

    LONDON — A justice of the High Court of England and Wales denied summary judgment to two restaurant chains on the issue of coverage for their business interruption losses arising from the coronavirus pandemic but granted summary judgment and permission to appeal the policy construction issue.

  • March 05, 2024

    Franchisees Seek Final Approval Of $30M Classification Settlement With Jan-Pro

    SAN FRANCISCO — California cleaning franchisees who sued Jan-Pro Franchising International Inc. alleging misclassification as independent contractors filed a motion in a federal court in California seeking final approval of a class settlement under which the franchisor will pay $30 million and make changes to its business practices.

  • February 28, 2024

    Judge: SBA Properly Denied Loan Forgiveness To PPP Borrower Not Initially Eligible

    AMARILLO, Texas — In a lawsuit brought by a truck dealer against the federal government challenging the Small Business Administration’s (SBA) determination that the dealer was not initially eligible for a Paycheck Protection Program (PPP) loan and thus ineligible for loan forgiveness, a Texas federal judge on Feb. 27 denied the dealer’s motion to alter or amend his opinion upholding the SBA’s decisions, ruling that the SBA’s loan review process “protects taxpayers from footing the bill for loans issued to ineligible parties” and that the SBA was authorized to enact that process.

  • February 26, 2024

    Claims, Defendants Partially Dismissed In Homebuyers’ Commission Class Case

    CHICAGO — A federal judge in Illinois partially granted motions to dismiss filed by a real estate brokers trade association and real estate franchisors in a putative class complaint by homebuyers who accuse the defendants of conspiring over commission rates, resulting in homebuyers paying artificially inflated prices for residential real estate because a portion of the supracompetitive rates is incorporated into the sales price of homes.

  • February 15, 2024

    Bid For Reconsideration On Third-Party Implied Indemnity Claim Is Disputed

    JACKSON, Miss. — Domino’s Pizza LLC and related entities are seeking reconsideration of a ruling that a third-party claim for implied indemnity survives dismissal in a dispute involving a franchisee and commutation of reinsurance, and in an opposition brief, third-party plaintiffs tell a Mississippi federal court that this case differs from two the Domino’s entities cited.

  • February 14, 2024

    Reconsideration Of Partial Dismissal Of Website Data Collection Claims Sought

    SAN DIEGO — Papa John’s International Inc. filed a motion for reconsideration in a federal court in California after a judge partially granted its motion to dismiss a putative class complaint alleging violations of the California Invasion of Privacy Act (CIPA) through the alleged interception and collection of users’ data on a pizza-ordering webpage, in light of the ruling in Briskin v. Shopify.

  • February 14, 2024

    Real Estate Broker Franchisor Asks High Court To Decide Who Decides Arbitrability

    WASHINGTON, D.C. — A real estate franchisor sued as part of an antitrust class action by home sellers over commission rules filed a petition for a writ of certiorari in the U.S. Supreme Court asking the justices to decide whether a court or an arbitrator should decide a question of arbitrability.

  • February 12, 2024

    McDonald’s Workers Say U.S. High Court Need Not Weigh In On No-Poach Dispute

    WASHINGTON, D.C. — A Seventh Circuit U.S. Court of Appeals decision holding that the no longer enforced no-hire agreement between a fast food franchisor and its franchisees might violate antitrust laws is “unremarkable” and “does not merit” review by the U.S. Supreme Court, McDonald’s workers argue in a Feb. 9 opposition to a petition for a writ of certiorari filed by McDonald’s USA LLC and McDonald’s Corp. (together, McDonald’s).

  • February 05, 2024

    Keller Williams’ $70M Pact In Sellers’ Commissions Case Preliminarily Approved

    KANSAS CITY, Mo. — A $70 million settlement proposed by Keller Williams Realty Inc. in a class case by home sellers in which a federal jury in Missouri found that the National Association of Realtors (NAR) and real estate franchisors engaged in a commission conspiracy in violation of Section 1 of the Sherman Act was granted preliminary approval by a federal judge in Missouri; on the same day, a joint motion to stay in light of the settlement was filed in a parallel action in a federal court in Illinois.

  • January 29, 2024

    Burger King Franchisee Seeks Coverage For Suit Alleging BIPA Violations

    CHICAGO — A franchisee of the Burger King chain sued its umbrella insurer in Illinois federal court for breach of contract, seeking a declaration that the insurer has a duty to defend it against an underlying putative class lawsuit alleging that it violated the Illinois Biometric Information Protection Act (BIPA).

  • January 29, 2024

    7-Eleven To Mass. High Court: Franchisees Don’t Perform Services For Franchisor

    BOSTON — Addressing the most recent question certified to the Massachusetts Supreme Judicial Court by the First Circuit U.S. Court of Appeals in an employment classification case, 7-Eleven Inc. argues in its brief that its franchisees do not trigger the Massachusetts test for independent contractor misclassification, also known as the “ABC” test, as their contractual obligations, including paying a percentage of their profit to the franchisor, do not constitute “services” under that test.

  • January 25, 2024

    Judge Rejects Pizza Chain’s Bid To Ditch Third-Party Implied Indemnity Claim

    JACKSON, Miss. — A third-party “claim for implied indemnity” against Domino’s Pizza LLC and related entities remains after a Mississippi federal judge otherwise dismissed a third-party complaint in the dispute involving a franchisee and commutation of reinsurance.

  • January 23, 2024

    Federal Judge Refuses To Dismiss 7-Eleven’s Bodily Injury Coverage Lawsuit

    MIAMI — A federal judge in Florida denied insurers’ motion to dismiss a 7-Eleven store’s declaratory judgment lawsuit seeking general liability and liquor liability coverage for a customer’s underlying bodily injury action alleging that a 7-Eleven employee physically struck him numerous times, concluding that the insured has adequately pleaded “a bona fide dispute” to survive dismissal.

  • January 18, 2024

    Partial Dismissal Granted In Class Suit Over Papa John’s Website Data Collection

    SAN DIEGO — A federal judge in California partially granted a pizza franchisor’s motion to dismiss a putative class complaint alleging violations of the California Invasion of Privacy Act (CIPA) through the alleged interception and collection of users’ data on a pizza ordering webpage, finding that the lead plaintiff failed to show that there were telephone communications at issue or that there was an imminent threat of harm in the future.

  • January 11, 2024

    PPP Borrower Denied Loan Forgiveness Claims Error By Court, Seeks Reconsideration

    AMARILLO, Texas — In a lawsuit brought by a truck dealer against the federal government challenging the Small Business Administration’s (SBA) determination that the dealer was not initially eligible for a Paycheck Protection Program (PPP) loan and thus ineligible for loan forgiveness, the dealer moved a Texas federal court to alter or amend its opinion and resulting judgment granting the SBA’s cross-motion for summary judgment, contending that the court misapplied established principles of administrative law and statutory interpretation.

  • January 10, 2024

    2nd Circuit: New York City’s Wrongful Discharge Law Isn’t Preempted By Federal Law

    NEW YORK — New York City’s Wrongful Discharge Law, which protects fast-food workers from arbitrary firings and reduced hours, is not preempted by the National Labor Relations Act (NLRA) or unconstitutional, as argued by two restaurant groups, a Second Circuit U.S. Court of Appeals panel ruled, affirming a trial court decision.

  • January 04, 2024

    P.F. Chang’s Coverage For COVID-19 Losses Limited To $1M, California Panel Affirms

    LOS ANGELES — A California appeals court on Jan. 3 concluded that P.F. Chang's China Bistro Inc.’s insurance policy language “clearly and unambiguously” provided only $1 million in coverage for its losses arising from the coronavirus pandemic, affirming a lower court’s ruling granting summary adjudication in favor of the insurer.

  • January 03, 2024

    Domino’s Truck Drivers Urge High Court Denial Of FAA Exemption Petition

    WASHINGTON, D.C. — Domino’s Pizza LLC truck drivers (D&S drivers), found by the Ninth Circuit U.S. Court of Appeals to be exempt from the Federal Arbitration Act (FAA) in their class case alleging unreimbursed business expenses and violation of California’s unfair competition law, filed a response brief, after initially waiving their right and then being asked to file one, urging the U.S. Supreme Court to deny Domino’s petition for a writ of certiorari.

  • January 02, 2024

    Trade Group, Policy Center Support McDonald’s Petition In No-Poach Dispute

    WASHINGTON, D.C. — The U.S. Supreme Court should grant certiorari to a fast food franchisor seeking a ruling on the appropriate analysis for Sherman Act claims regarding intrabrand hiring restraints, a nonprofit research and policy center and a trade group argue in separate amicus curiae briefs.

  • December 18, 2023

    Global Settlement Resolving Reinsurance Collateral Row Wins Approval

    ST. LOUIS — A global settlement agreement involving limited liability companies that owned and operated dozens of Jack in the Box restaurants under franchise agreements has been approved and related requests granted in a federal bankruptcy court in Missouri.

  • December 13, 2023

    Judge: SBA Had Authority To Determine Borrower Was Never Eligible For PPP Loan

    AMARILLO, Texas — In a lawsuit brought by a truck dealer against the federal government challenging the Small Business Administration’s (SBA) determination that the dealer was not initially eligible for a Paycheck Protection Program (PPP) loan and thus ineligible for loan forgiveness, a Texas federal judge on Dec. 12 granted the government’s cross-motion for summary judgment and denied the dealer’s motion for summary judgment, finding that the SBA did not exceed its statutory authority or act arbitrarily or capriciously in refusing loan forgiveness based on later-determined loan eligibility.

  • December 06, 2023

    Preliminary Approval Granted To Jan-Pro $30M Worker Classification Settlement

    SAN FRANCISCO — A federal judge in California on Dec. 5 granted preliminary approval of a class settlement in a worker classification suit under which Jan-Pro Franchising International Inc. will pay $30 million and make changes to its business practices that will benefit California franchisees.

  • November 30, 2023

    No Coverage Owed For Breach Of Franchise Agreement, Trademark Infringement Claims

    SAN FRANCISCO — The Ninth Circuit U.S. Court of Appeals affirmed a lower federal court’s ruling in favor of insurers in an insured’s breach of contract and bad faith lawsuit seeking coverage for an underlying action alleging that it breached a franchise agreement and infringed on trademarks, finding that some of the underlying claims “clearly fell outside the policy's coverage” and that the policy’s intellectual property (IP) exclusion also barred coverage.

  • November 28, 2023

    Amended Motion For Settlement Notice Filed In Papa John’s No-Poach Case

    LOUISVILLE, Ky. — The lead plaintiff in a case accusing a pizza chain franchisor of violating the Sherman Act by coordinating no-poach agreements between its franchisees filed an amended motion to direct notice of settlement to the proposed class after a federal judge in Kentucky denied preliminary approval due to insufficient information regarding adequacy, typicality and predominance.

  • November 27, 2023

    2 Real Estate Franchisors’ $138.5M Commissions Pact Granted Preliminary Approval

    KANSAS CITY, Mo. — A federal judge in Missouri granted preliminary approval of a $138.5 million settlement agreement between two real estate franchisors and home sellers in two cases accusing the National Association of Realtors (NAR) and real estate franchisors of engaging in a commission conspiracy in violation of Section 1 of the Sherman Act.