Mealey's Franchise

  • May 03, 2021

    New Jersey Judge Denies Tax Preparation Franchise Employees Class Action Status

    NEWARK, N.J. — A New Jersey federal judge on April 27 refused to grant class certification in an action brought by 20 tax preparation franchise employees who allege their employer illegally deducted the value of prepaid gift cards from their earnings, which resulted in lower commission payments.

  • April 30, 2021

    Judge Denies Reconsideration, Attorney Fees In Franchise Contract Deceptive Act Row

    DETROIT — A Michigan federal judge on April 27 declined to revisit his judgment that a franchisor violated the Florida Deceptive and Unfair Trade Practices Act (FDUTPA) but must return only a $39,000 franchise fee to the former franchisee, saying that neither party raised issues that warrant reconsidering the case and denying the franchisee’s request for $342,871 in attorney fees.

  • April 30, 2021

    2nd Circuit Denies 6-Month Abeyance In Joint Employment Appeal; States File Brief

    NEW YORK — A week after the Second Circuit U.S. Court of Appeals denied a motion for a six-month abeyance of appeal sought by the Biden administration’s Labor secretary in an appeal filed by the secretary under the Trump administration, the states and commonwealths that sued the prior secretary challenging the U.S. Department of Labor’s (DOL) final rule revising its regulations interpreting vertical joint employer liability filed an appellee brief on April 16 asking the court to affirm the District Court’s ruling vacating the rule.

  • April 29, 2021

    11th Circuit Remands Case Against Franchisor For Jurisdiction Determination

    ATLANTA — A Florida district court must determine whether it had subject matter jurisdiction “in the first instance” before an appeal proceeds on its dismissal of Tim Hortons franchisees’ predatory business scheme claims against a franchisor, the 11th Circuit U.S. Court of Appeals said April 27, remanding the case upon finding a dispute about whether diversity jurisdiction existed because the association failed to allege its place of incorporation to establish diversity of citizenship.

  • April 26, 2021

    N.Y. Justice:  Owners Fail To Allege Direct Physical Loss Or Damage To Hotels

    SYRACUSE, N.Y. — A New York justice on April 13 granted an insurer’s motion to dismiss a breach of contract lawsuit seeking coverage for losses arising from the coronavirus pandemic, finding that the hotel owners fail to allege any direct physical loss or damage to their premises to trigger coverage under the business interruption, ingress/egress, civil and military authority and rental insurance policy provisions.

  • April 26, 2021

    1st Circuit To Decide If Independent Contractor Test Conflicts With Franchise Law

    BOSTON — In briefs filed April 19 and Feb. 16, respectively, convenience store chain 7-Eleven and franchisees, who filed a proposed class action alleging they were misclassified as contractors rather than employees, ask the First Circuit U.S. Court of Appeals to determine whether Massachusetts’ three-prong test for independent contractor status conflicts with federal franchising regulations.

  • April 25, 2021

    Tim Hortons Group Appeals Dismissal To 11th Circuit, But Jurisdiction Questioned

    MIAMI — A trial court erred in dismissing predatory business scheme claims against a Tim Hortons franchisor because the complaint properly states a plausible claim for relief, an association of the restaurant’s franchisees argues to the 11th Circuit U.S. Court of Appeals in its April 16 appellant brief, which followed court-requested briefs on whether the court has diversity jurisdiction over the appeal.

  • April 23, 2021

    New Jersey Appellate Court: Association Lacks Standing To Challenge Tesla Sales

    TRENTON, N.J. — A trade association that represents New Jersey’s franchised automobile dealerships lacked standing to challenge state agencies’ discretionary enforcement actions allowing Tesla to sell its vehicles directly to consumers in the state, the New Jersey appellate court concluded April 20.

  • April 23, 2021

    Judge Denies Attorney Fees, Ruling Franchisee Is Not Prevailing Party In Suit

    SEATTLE — A direct marketing services franchisee did not prevail in a suit in which claims against him were voluntarily dismissed and his counterclaims were abandoned or dismissed on summary judgment, a Washington federal judge held April 12, denying a petition to make the franchisor who initially filed the suit pay $892,855.71 in attorney fees and costs under the franchise agreement.

  • April 23, 2021

    11th Circuit Remands Franchisor’s Appeal For Citizenship Determination

    ATLANTA — The 11th Circuit U.S. Court of Appeals on April 6 said it cannot determine whether it has jurisdiction over an urgent care facility franchisor’s dispute with a franchisee under complete diversity of citizenship, remanding the case to an Alabama federal court to determine the parties’ citizenship.

  • April 20, 2021

    Class Suit Claims Shell Oil Charges Undisclosed Fee For Debit Card Purchases

    WEST PALM BEACH, Fla. — Shell Oil Co. charges consumers paying with debit cards an undisclosed fee in violation of Florida’s consumer protection laws, a class alleges in a complaint filed April 16 in a federal court in Florida.

  • April 20, 2021

    Lawn Mower Manufacturer Asks 8th Circuit To Vacate $6.5 Million Award To Dealer

    ST. LOUIS — A lawn mower manufacturer seeks to vacate an award of more than $6.5 million in damages, attorney fees and costs to one of its dealers, arguing to the Eighth Circuit U.S. Court of Appeals in its April 9 appellant brief that the dealer’s expert provided no evidence of damages from the alleged breach of the parties’ contract or wrongful termination of the dealer.

  • April 19, 2021

    Alabama Federal Judge: Hilton Owed No Duty To Guest Injured At Franchisee’s Hotel

    MONTGOMERY, Ala. — A guest who alleged injuries from tripping over a cord did not prove that the parent company of a hotel franchisor exercised sufficient control over the franchisee to establish a duty of care to its guests, an Alabama federal judge ruled April 14, granting summary judgment in favor of the parent company on claims of negligence and recklessness and wantonness under Alabama law.

  • April 15, 2021

    Volkswagen Salespersons Tell 9th Circuit Class Suit Was Wrongly Dismissed

    SAN FRANCISCO — Three salespeople who allege that their business was harmed by Volkswagen’s emissions scandal tell the Ninth Circuit U.S. Court of Appeals in an April 9 appellant brief that a district court erred in concluding that the car maker was not their employer under California law and in granting a motion to dismiss their class employment and unfair competition law (UCL) claims.

  • April 14, 2021

    10th Circuit:  Franchisee Deprived Notice Of Entry Of Judgment

    DENVER — In an April 13 ruling, the 10th Circuit U.S. Court of Appeals found that although a federal judge in Oklahoma did not abuse his discretion in granting a motion to enforce a settlement agreement between a franchisor and former franchisee accused of trademark infringement, he “went too far” in entering a $200,000 judgment.

  • April 14, 2021

    OSHA Cites Tax Prep Franchisee For Failure To Provide COVID-19 Safeguards

    BOSTON — The owner of a Liberty Tax Service location in Massachusetts must pay $136,532 in penalties for refusing to put in place various safeguards to protect employees and customers from coronavirus, including prohibiting employees and customers from wearing masks, the U.S. Department of Labor (DOL) announced April 13.

  • April 14, 2021

    Judge: Spa Franchises’ Losses Do Not Implicate Communicable Disease Provision

    WILMINGTON, N.C. — A federal judge in North Carolina on April 13 held that franchises of Hand and Stone Massage and Facial Spa fail to plausibly assert that their insurance policies’ Communicable Disease Provision was implicated by their claimed lost income arising from their business closures prompted by the coronavirus pandemic, finding that the insureds do not assert that COVID-19 was ever present at their insured premises.

  • April 14, 2021

    Motel Denied Class Certification In Junk Fax Prevention Act Case Against Sprint

    NEW HAVEN, Conn. — A Connecticut federal judge on March 31 denied class certification in a motel’s case claiming that Sprint Solutions Inc. sent five unsolicited fax ads over three years in violation of the Junk Fax Prevention Act, ruling that the motel cannot show that classwide issues predominate over individual issues of consent.

  • April 14, 2021

    Split 8th Circuit Rules Litigation Strategy Not A Waiver Of Right To Arbitrate

    ST. LOUIS — A split Eighth Circuit U.S. Court of Appeals panel on March 30 reversed a district court’s denial of a motion to compel arbitration, ruling in a 2-1 decision that a corporation’s litigation strategy did not waive its right to arbitrate with a former employee who alleged that a franchise violated the Fair Labor Standards Act (FLSA) by failing to pay overtime.

  • April 13, 2021

    Dispute Over Business Coaching Franchise Royalties Allowed To Proceed By Federal Judge

    CINCINNATI — An Ohio federal judge denied business coaching franchisees’ motion to dismiss for lack of personal jurisdiction, failure to state a claim and improper venue on March 31 in a franchisor’s suit accusing the defendants of failing to pay royalties due under the franchise agreement after they changed the name of their business without consent.  The judge agreed to dismiss a fraud claim against the owner of the franchise.

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