Mealey's Franchise
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January 05, 2022
Class Certification Granted In Harassment Suit Against McDonald’s Franchisee
DETROIT — A federal judge in Michigan on Dec. 29 certified a class of female workers who sued a McDonald’s franchisee alleging that they were repeatedly physically and verbally harassed by a manager.
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January 05, 2022
Rehearing Request Time Extended After Arbitration Denial In Domino Drivers’ Suit
PASADENA, Calif. — A request by a pizza franchisor for a 14-day extension to file a petition for rehearing was granted Jan. 3 by the Ninth Circuit U.S. Court of Appeals, less than two weeks after the panel affirmed a trial court’s order denying the franchisor’s motion to compel arbitration in a putative class complaint by truck drivers asserting violations of California’s labor laws.
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December 15, 2021
Subway: Amended Class Claims Over Tuna Content Are Unsupported
OAKLAND, Calif. — A sandwich franchisor accused in a putative class complaint of violating California’s unfair competition law (UCL) and other state laws by labeling its tuna salad, sandwiches and wraps as “100% tuna” while failing to prevent adulteration and “encouraging mixing or allowing non-tuna ingredients to make their way into the Tuna Products” moved Dec. 8 for dismissal of the second amended complaint, arguing that the complaint fails to show any false or misleading representations or damage to the consumers.
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December 14, 2021
EEOC Accuses McDonald’s Franchise Of Failing To Hire Black Applicants
MILWAUKEE — The Equal Employment Opportunity Commission filed a complaint on Dec. 13 in a Wisconsin federal court accusing the operator of nine McDonald’s locations of violating federal law by failing to hire a class of Black applicants at its Milwaukee location.
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December 14, 2021
Black McDonald’s Franchisees Dismiss Bias, Fraud Claims Against Franchisor
CHICAGO — A federal judge in Illinois on Dec. 13 terminated a putative class complaint accusing a fast food franchisor of steering Black franchisees to Black communities where white franchisees refused to operate restaurants due to higher overhead costs and employee turnover after both sides in the case filed a joint stipulation of dismissal with prejudice on Dec. 10.
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December 14, 2021
10th Circuit Affirms Franchisor Owed No Duty To Advise Franchisee’s Employee
DENVER — A franchisor has no duty under Oklahoma law to protect a franchisee’s employee by advising her how to address her allegation that the franchisee sexually harassed her, the 10th Circuit U.S. Court of Appeals ruled Dec. 8 in an unpublished order, affirming the dismissal of a negligent misrepresentation claim against the franchisor.
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December 14, 2021
On Heels Of Trial Win, Liquor Wholesaler Seeks $3.4M In Attorney Fees
ST. LOUIS — In a Dec. 7 filing in Missouri federal court, a plaintiff who was recently awarded $11.75 million by jurors on its allegation that Mast-Jägermeister US Inc. (Jägermeister) violated Missouri franchise law when it terminated a distribution agreement without good cause moved for an award of $3.4 million in attorney fees, arguing that “there can be no dispute” that it is the prevailing party in the case.
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December 14, 2021
Franchisor Wins Dismissal In Dispute Over Sales Of Sick Animals
CHARLESTON, S.C. — A nationwide pet store franchisor won dismissal on Dec. 6 of allegations that it enticed consumers into purchasing unhealthy pets when a federal judge in South Carolina found, among other things, that a requirement that franchisees retain the services of a local veterinarian for regular dog and cat examinations is not akin to a guarantee of animal health.
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December 14, 2021
Panel: Jurisdiction Over State Law Claims Lacking In Franchise Row
ATLANTA — Just over four months after a Florida federal judge, acting in response to a limited remand by the 11th Circuit U.S. Court of Appeals, said it lacks subject matter jurisdiction over state law claims by an association of Tim Hortons franchises, the appellate court on Dec. 1 vacated and remanded the price-gouging dispute with instructions for a dismissal without prejudice.
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December 13, 2021
High Court Won’t Decide Whether Dealers Are Entitled To Compensation After Bailout
WASHINGTON, D.C. — The U.S. Supreme Court on Dec. 13 declined to review the Federal Circuit U.S. Court of Appeals ruling that former Chrysler dealership franchisees failed to prove that their franchise agreements would have had a positive value but for the conditions the federal government imposed on a $4 billion bridge loan to the bankrupt automaker that required rejecting their franchise agreements.
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December 10, 2021
9th Circuit: Volkswagen Salespersons’ Class Labor, Unfair Competition Claims Fail
SAN FRANCISCO — Salespeople at franchised dealerships who claimed that their business was harmed by Volkswagen’s emissions scandal failed to adequately allege that the car maker was their joint employer, the Ninth Circuit U.S. Court of Appeals affirmed Dec. 6 in an unpublished opinion.
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December 10, 2021
Arbitration Award Against Russian Franchisee Is Vacated By New York Federal Judge
NEW YORK — A federal judge in New York on Dec. 8 vacated an arbitration award concerning the control of franchisee sandwich shops in Russia, concluding that the arbitrator purported to render a decision on a claim that was reserved for trial.
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December 09, 2021
Summary Judgment For McDonald’s But Not Franchisee In Harassment Class Suit
DETROIT — A federal judge in Michigan on Dec. 6 issued two opinions granting summary judgment to a fast food franchisor but largely denying a partially motion for summary judgment by the franchisee in a putative class complaint by female former employees who allege that they were repeatedly physically and verbally harassed by a manager.
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December 07, 2021
6th Circuit Reverses Dismissal And Stays Ford Resale Suit For Tribunal Resolution
CINCINNATI — A Sixth Circuit U.S. Court of Appeals panel on Dec. 3 reversed a trial court’s dismissal of the claims remaining in a dispute involving a resale agreement between Ford Motor Co. and a company that sold Ford vehicles in the Middle East and instead granted the stay sought by Ford while the parties attempt to resolve the dispute before a tribunal, declining to adopt an absolute rule concerning a court’s discretion under the Federal Arbitration Act.
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December 06, 2021
Decertification Of Shoe Deduction Class Denied In Fast Food Workers’ Suit
PORTLAND, Ore. — Less than a week after denying a renewed motion to certify a class of fast-food workers bringing various wage claims who allege in part that flaws in timekeeping systems caused improper compensation, a federal judge in Oregon on Dec. 1 declined to decertify a class of workers in the same suit on wage claims related to paycheck deductions for non-slip shoes that they were allegedly required to wear.
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December 02, 2021
Class Certification Again Denied In Workers’ Wage Suit Against Jack In The Box
PORTLAND, Ore. — A federal judge in Oregon on Nov. 27 denied a renewed motion to certify a class of fast-food workers seeking wages and alleging that flaws in timekeeping systems caused improper compensation, finding that changes to the state law in 2010 meant that the named plaintiffs all last employed prior to the changes had claims that were not typical of class members with claims after the changes.
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December 01, 2021
7-Eleven Tells Massachusetts High Court ABC Test Doesn’t Apply To Franchisors
BOSTON — Massachusetts’ Independent Contractor Law (ICL) doesn’t apply to franchisors subject to the Federal Trade Commission’s Franchise Rule, 7-Eleven Inc. argues in its Nov. 12 appellee brief urging the Massachusetts Supreme Judicial Court to answer “no” to a question certified by the First Circuit U.S. Court of Appeals.
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November 19, 2021
$3.25M Pizza Franchisee Drivers’ Expenses Class Settlement Approved
DAYTON, Ohio — Final approval of a $3.25 million class settlement between Papa John’s franchisees and delivery drivers who brought class and collective claims seeking reimbursement for actual expenses was granted by a federal judge in Ohio on Nov. 18.
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November 19, 2021
U.S. Department Of Justice, Dunkin Franchisee Settle Immigration Bias Claims
WASHINGTON, D.C. — A Maryland company that owns two Dunkin franchises will pay civil penalties and back pay to settle claims by the U.S. Department of Justice (DOJ) that it discriminated against a permanent resident due to his immigration status by not allowing him to choose which valid documentation he wished to present to show that he was allowed to work, the DOJ announced Nov. 18.
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November 17, 2021
New Complaint Filed In Franchise Antitrust Suit After Class Extension Allowed
NEWARK, N.J. — Individuals who worked for a tax preparation franchisor or franchisees and allege that there is a conspiracy to suppress compensation via no-poach agreements filed an amended class complaint in a federal court in New Jersey on Nov. 1 after a federal magistrate judge issued a corrected order that day permitting the plaintiffs to extend the class period to the present.