Mealey's Franchise

  • April 03, 2020

    Coverage For Arbitration Awards Against Franchisor Not Excluded, Federal Judge Says

    NASHVILLE, Tenn. — A federal judge in Tennessee on March 31 held that a professional liability insurer has failed to demonstrate that policy exclusions apply to bar coverage for arbitration awards for breach of contract claims, attorney fees or arbitration costs entered against a franchisor insured, denying the insurer’s motion for summary judgment (For Senior Help, LLC v. Westchester Fire Insurance Company, No. 19-cv-00126, M.D. Tenn., 2020 U.S. Dist. LEXIS 56057).

  • April 02, 2020

    Dismissal Of Deceptive Marketing Suit Against Dunkin’ Donuts Upheld

    NEW YORK — The Second Circuit U.S. Court of Appeals on March 31 affirmed dismissal of a lawsuit against Dunkin’ Donuts alleging deceptive marketing of two breakfast sandwiches because a reasonable consumer would not have expected an “intact” piece of “Angus beef” (Chufen Chen, et al. v. Dunkin’ Brands, Inc., et al., No. 18-3087, 2nd Cir., 2020 U.S. App. LEXIS 9979).

  • April 01, 2020

    Panel:  Agreed Limitation Provision Bars Franchisor’s Equitable Relief Lawsuit

    DENVER — A franchisor and its franchisee are barred from seeking equitable relief based upon an agreed limitation in their cannabis franchise agreement, a Colorado appeals panel held March 26, affirming dismissal of the lawsuit seeking injunctive relief and specific performance with regard to a purchase offer by a third-party (Jushi FL SPV, LLC v. San Felasco Nurseries, Inc., Nos. 18CA1817 & 18CA2324, Colo. App., Div. 4, 2020 Colo. App. LEXIS 688).

  • March 31, 2020

    Employee Fails To Add GEICO To Discrimination Suit Against Its Franchisee

    NEWARK, N.J. — A New Jersey federal magistrate judge on March 25 denied an employee’s motion to add Government Employees Insurance Co. (GEICO) to his discrimination and retaliation lawsuit against a franchised third-party vendor of GEICO because there are no specific allegations that GEICO asserts control over the franchisee (Nasser Saleh v. Egglinger Insurance Agency, LLC, et al., No. 19-13944, D. N.J., 2020 U.S. Dist. LEXIS 51350).

  • March 30, 2020

    Most Of Franchisor’s Claims Against Nissan Allowed To Proceed

    NEW ALBANY, Ind. — An Indiana automobile dealership’s declaratory judgment claim regarding the Indiana Deceptive Franchise Practices Act is allowed to proceed against Nissan North America Inc. (NNA), an Indiana federal judge ruled March 26, granting in part and denying in part the automotive maker’s motion to dismiss (Coyle Nissan, LLC v. Nissan North America, Inc., No. 18-75, S.D. Ind., 2020 U.S. Dist. LEXIS 52531).

  • March 26, 2020

    Corporate Franchisees Sold Away Their Claims Against Window Supplier, Judge Says

    STATESVILLE, N.C. — When corporate franchisees sold their business assets years before their owner filed a dispute with a window supplier, they sold their fraud claims, a North Carolina federal judge held March 25, granting summary judgment to Window World Inc. (Mike Bendfeldt, et al. v. Window World, Inc., No. 17-39, W.D. N.C., 2020 U.S. Dist. LEXIS 52015).

  • March 26, 2020

    Federal Judge Dismisses Employees’ Antitrust Case Against Burger King

    MIAMI — Without sufficient allegations that Burger King Corp. and its franchisees “are separate economic actors for antitrust purposes,” a federal judge in Florida on March 24 dismissed employees’ antitrust lawsuit against the hamburger fast food chain and its franchisees (Jarvis Arrington, et al. v. Burger King Worldwide, Inc., et al., No. 18-24128, S.D. Fla.).

  • March 23, 2020

    No Reconsideration For Sprint Over Junk Fax Prevention Act Claims

    NEW HAVEN, Conn. — A federal judge in Connecticut on March 19 refused to reconsider his denial of summary judgment to Sprint Solutions Inc. on a motel’s federal law claims under the Junk Fax Prevention Act over unsolicited fax advertisements (Gorss Motels Inc. v. Sprint Communications Company, L.P. et al., No. 17-546, D. Conn., 2020 U.S. Dist. LEXIS 47592).

  • March 19, 2020

    Federal Judge Transfers Franchise Referral Company’s Breach Of Contract Case

    MIAMI — A federal judge in Florida on Feb. 21 transferred a franchise referral company’s breach of contract and unjust enrichment lawsuit to a Colorado federal court because the court lacks general and specific personal jurisdiction (The Franchise Consulting Company, Inc. v. Crestcom International, LLC, No. 19-22216, S.D. Fla., 2020 U.S. Dist. LEXIS 31391).

  • March 19, 2020

    Judge Awards 7-Eleven $159,566.78 Judgment Against Former Franchisee

    PHILADELPHIA — A Pennsylvania federal judge on March 4 awarded $159,566.78 to 7-Eleven Inc. on its breach of contract and breach of guaranty counterclaims against a former franchisee (Anthony Chong, et al. v. 7-Eleven, Inc., 18-1542, E.D. Pa., 2020 U.S. Dist. LEXIS 39402).

  • March 18, 2020

    Judge: Sex Trafficking Suit Allowed To Proceed Against Best Western

    COLUMBUS, Ohio — Allegations that Best Western International Inc. and its hotel franchisee were aware of sex trafficking occurring on their properties may proceed, a federal judge in Ohio ruled March 16, denying motions to dismiss brought by the hotels (Jane Doe S.W. v. Lorain-Elyria Motel, Inc., et al., No. 19-1194, S.D. Ohio, 2020 U.S. Dist. LEXIS 44961).

  • March 17, 2020

    Domino’s Franchisee’s Motion To File Wage Settlement Under Seal Denied

    JONESBORO, Ark. — A federal judge in Arkansas on March 13 denied an unopposed motion by a Domino’s Pizza franchisee with locations in Arkansas and Missouri to file a wage collective and class settlement that it reached with delivery drivers under seal and directed the parties to file unredacted documents within 10 days on the public docket if they wish to continue with the settlement (James Ewing v. Pizza Czar Inc., et al., No. 19-232, E.D. Ark., 2020 U.S. Dist. LEXIS 43617).

  • March 17, 2020

    In Michigan, Fabricator’s Franchise Claims Against Countertop Maker Tossed

    GRAND RAPIDS, Mich. — Allegations of breach of contract and violations of a state franchise law by a countertop fabricator and seller against a popular quartz countertop maker will not proceed in Michigan, a federal judge ruled March 13 (Lakeside Surfaces Inc. v. Cambria Company LLC, No. 18-110, W.D. Mich., 2020 U.S. Dist. LEXIS 43727).

  • March 16, 2020

    Subway Will Appeal Arbitration Denial In TCPA Class Complaint

    NEW HAVEN, Conn. — Subway Franchisee Advertising Fund Trust Ltd. filed a notice of appeal on March 13, just over a week after a federal judge in Connecticut denied its motion to compel arbitration in a class complaint alleging that it sent unwanted text messages in violation of the Telephone Consumer Protection Act (TCPA) (Marina Soliman v. Subway Franchisee Advertising Fund Trust Ltd., et al., No. 19-592, D. Conn.).

  • March 16, 2020

    Judge Enjoins Franchisor From Arbitrating Claims In Ohio, Dismisses UCL Claim

    SAN DIEGO — A federal judge in California on March 12 entered a preliminary injunction barring arbitration proceedings in a federal court in Ohio between Matco Tools Corp. and two franchisees who complain that they are being wrongfully treated as independent contractors as opposed to employees, finding that the plaintiffs presented sufficient evidence of the likelihood of success on their argument that provisions in a distribution agreement between the parties may render it unenforceable (Emanuel Aguilera, et al. v. Matco Tools Corp., No. 19-01576, S.D. Calif., 2020 U.S. Dist. LEXIS 43283).

  • March 09, 2020

    Magistrate Judge Issues Vast Ruling In Franchise Dispute Over Fruit Bouquets

    NEW YORK — A federal magistrate judge in New York on Feb. 21 issued an expansive ruling in a franchise dispute between franchisees in Florida and Arizona against 1-800-Flowers.Com Inc. over agreements governing the sales of fruit bouquets, finding that there are genuine disputes regarding the New York State Franchise Sales Act (FSA), breach of the implied covenant of good faith and fair dealing and Arizona Consumer Fraud Act (CFA) (Arizona Family Florists LLC, et al. v. 1-800-Flowers.Com Inc., et al., No. CV 16-2638, E.D. N.Y., 2020 U.S. Dist. LEXIS 31389).

  • March 06, 2020

    New York Appeals Court: Franchise Company Manager Liable For Unemployment

    ALBANY, N.Y. — A New York company that manages franchise companies providing limousine services has a sufficient employer-employee relationship with the drivers to be liable for unemployment insurance contributions, a New York appellate panel ruled Feb. 27, affirming a holding by the Unemployment Insurance Appeal Board (In the Matter of the Claim of Levon Aleksanian, No. 529032, N.Y. Sup., App. Div., 3rd Dept., 2020 N.Y. App. Div. LEXIS 1438).

  • March 05, 2020

    $800,000 Wage Settlement For Domino’s Drivers Granted Final Approval

    CHICAGO — An Illinois federal judge on Feb. 27 granted final approval of an $807,500 collective and class settlement for Domino’s Pizza franchisee delivery drivers who claim that the franchisee improperly took a tip credit from the wages of drivers and that drivers were not adequately reimbursed for their delivery-related expenses, resulting in failure to pay minimum wage (Samantha Young, et al. v. Rolling in the Dough, Inc., No. 17-7825, N.D. Ill.).

  • March 04, 2020

    Class Denied, Collective Granted In Franchisee Delivery Drivers’ Tip Pool Suit

    WILLIAMSPORT, Pa. — A federal judge in Pennsylvania on Feb. 21 conditionally certified a collective of delivery drivers for a chicken wings franchisee who claim that they were forced to share tips with kitchen workers in violation of the Fair Labor Standards Act (FLSA) and state law but denied certification of a class, finding that the drivers were unable to show commonality and predominance (Jacob Wilson, et al. v. Wings Over Happy Valley MDF, LLC, et al., No. 17-915, M.D. Pa., 2020 U.S. Dist. LEXIS 30207).

  • March 04, 2020

    Excess Insurer: Suits Against McDonald’s Franchisee Arise From Separate Occurrences

    NEW YORK — A commercial liability umbrella insurer sued a commercial general liability primary insurer in a New York court on March 3, seeking a declaration that two wrongful death lawsuits over the consumption of contaminated food and beverages that were allegedly served by a McDonald’s franchisee employee who was infected with the hepatitis A virus (HAV) arise from separate occurrences and, therefore, that the amount the primary insurer paid in connection with one of the lawsuits does not reduce any of its per-occurrence limits applicable to the second action (RSUI Indemnity Company v. Aspen Specialty Insurance Company, No. 651439/2020, N.Y. Sup., New York Co.).