Mealey's Franchise

  • October 18, 2019

    Barbecue Franchisor Seeks Rehearing After Arbitration Motion Denied

    DENVER — A 10th Circuit U.S. Court of Appeals panel erred when it upheld the denial of a motion filed by a barbecue franchisor to compel arbitration of a franchisee’s breach of contract dispute, the franchisor, Dickey’s Barbecue Restaurants Inc., argues in a Sept. 20 petition for rehearing or rehearing en banc (Campbell Investments LLC, et al. v. Dickey’s Barbecue Restaurants Inc., No. 18-4055, 10th Cir.).

  • October 18, 2019

    Washington Supreme Court Answers Certified Questions In Franchisor Markup Case

    OLYMPIA, Wash. — The Washington Supreme Court on Sept. 19 held that a fair and reasonable price “is not inherently established” by the price that a franchisor obtains for a good and that the franchisor does not violate the state’s Franchise Investment Protection Act (FIPA) by selling the product or service to a franchisee “for twice the price at which the franchisor obtained it” (Money Mailer LLC v. Wade G. Brewer, No. 96304-5, Wash. Sup., 2019 Wash. LEXIS 585).

  • October 18, 2019

    11th Circuit Denies Rehearing In Hotel Franchisees’ Suit Over Unwanted Faxes

    ATLANTA — An 11th Circuit U.S. Court of Appeals panel, in a Sept. 20 per curiam one-page order, denied a rehearing or rehearing en banc requested by Wyndham Hotel Group (WHG) franchisees after a panel ruled on July 26 that sales faxes sent to the hotels were solicited (Gorss Motels, Inc., et al. v. Safemark Systems, LP, Nos. 18-12511 & 18-15232, 11th Cir., 2019 U.S. App. LEXIS 28648).

  • October 17, 2019

    Putative ECOA Class Action Against Franchisor Dismissed With Prejudice

    WILMINGTON, Del. — A federal judge in Delaware on Oct. 9 dismissed with prejudice a putative class action filed against a tutoring and test preparation services franchisor, finding that because a prospective franchisee did not actually apply for financing credit, he lacked standing to allege a violation of the Equal Credit Opportunity Act (ECOA) (Herman Dhade, et al. v. Huntington Learning Centers, Inc., No. 17-1834, D. Del., 2019 U.S. Dist. LEXIS 175251).

  • October 17, 2019

    Dismissal Denied In Suit Over Realty Commission; U.S. Files Statements Of Interest

    KANSAS CITY, Mo. — A Missouri federal judge on Oct. 16 denied motions to dismiss filed in one of two class complaints pending in Missouri and Illinois accusing the National Association of Realtors (NAR) and certain real estate broker franchisors of conspiring to require home sellers to pay inflated broker commissions in violation of the Sherman Act (Joshua Sitzer, et al. v. The National Association of Realtors, et al., No. 19-332, W.D. Mo.).

  • October 16, 2019

    Burger King Franchisee’s Suit Over Forum Selection Clause Dismissed With Prejudice

    MIAMI — A Burger King franchisee when signing a franchise agreement also agreed to litigate any matters where there is federal jurisdiction within the U.S. District Court for the Southern District of Florida, a Florida federal judge ruled on Oct. 11, finding that the forum selection clause is enforceable and dismissing with prejudice the franchisee’s complaint seeking a declaration that it was invalid (Capital Restaurant Group, LLC v. Burger King Corporation, No. 19-22131, S.D. Fla., 2019 U.S. Dist. LEXIS 176821).

  • October 15, 2019

    No Abuse Of Discretion Found In Ohio Trial Court’s Ruling On Trade Secret Claims

    COLUMBUS, Ohio — A divided Ohio appeals panel on Sept. 30 ruled that a state trial court did not abuse its discretion in applying Ohio’s trade secrets act to find that a former employee of a boxing gym franchise and the gym he opened after the franchise closed misappropriated the franchise’s confidential and trade secret customer information when he accessed password-protected software to obtain its customer list to solicit customer business by email after the franchise ceased operations (MNM & MAK Enterprises LLC, et al. v. HIIT Fit Club LLC, et al., No. 18AP-980, Ohio App., 10th Dist., 2019 Ohio App. LEXIS 4076).

  • October 15, 2019

    Former Domino’s Delivery Driver Seeks Preliminary Approval Of Wage Settlement

    CHICAGO — A former pizza delivery driver who worked for two different Domino’s Pizza franchisees before bringing a collective and class action wage lawsuit on Oct. 9 moved for preliminary approval of a $807,500 settlement agreement with the franchisees (Samantha Young, et al. v. Rolling in the Dough, Inc., No. 17-7825, N.D. Ill.).

  • October 15, 2019

    Judge Dismisses Negligence Case Against Hotel Franchisor For Lack Of Jurisdiction

    PHILADELPHIA — Allegations that a South Carolina hotel owner owned and franchised hotels in Pennsylvania do not show that the hotel owner is “essentially at home” in the state, a federal judge in Pennsylvania ruled Oct. 9, dismissing a negligence case (Shirlyn B. Kurz v. Holiday Hospitality Franchising, LLC, et al., No. 19-2129, E.D. Pa., 2019 U.S. Dist. LEXIS 175193).

  • October 11, 2019

    Jan-Pro Seeks 9th Circuit Rehearing In Franchisee Classification Lawsuit

    SAN FRANCISCO — A cleaning service franchisor filed a petition on Oct. 8 seeking a panel rehearing or rehearing en banc after a Ninth Circuit U.S. Court of Appeals panel on Sept. 24 ruled that franchisees may proceed with claims that they are employees under the ABC test established in Dynamex Operations West Inc. v. Superior Court (Gerardo Vazquez, et al. v. Jan-Pro Franchising International, Inc., No. 17-16096, 9th Cir.).

  • October 10, 2019

    Judge Declines To Dismiss Franchisee’s Breach Of Contract Claim Against McDonald’s

    NEWARK, N.J. — In an age discrimination lawsuit, a federal judge in New Jersey on Sept. 30 refused to dismiss a franchisee’s breach of contract claim against McDonald’s USA LLC; however, the judge dismissed a claim for civil conspiracy and allegations of violations of the federal Racketeering Influenced and Corrupt Organizations Act and New Jersey’s RICO Act from a scheme to overcharge on purchases made from an approved vendor (Sebastian E. Lentini, et. al. v. McDonald’s USA, et. al., No. 19-4596, D. N.J., 2019 U.S. Dist. LEXIS 169180).

  • October 10, 2019

    In Virginia, Hotel Franchisor Awarded More Than $3M For Infringement

    ROANOAKE, Va. — Franchisees who continued using their former franchisor’s trademarks after their franchise agreement was terminated must pay $3,094,066 in connection with the infringement, a Virginia federal judge ruled Sept. 30 (Choice Hotels International Inc. v. A Royal Touch Hospitality LLC, et al., No. 17-381, W.D. Va., 2019 U.S. Dist. LEXIS 167904).

  • October 08, 2019

    Plaintiffs, Franchisor Oppose Production Of Confidential Spyware Suit Settlement

    ERIE, Pa. — On Oct. 4, a Wyoming couple who sued a rent-to-own (RTO) franchisor and franchisee over the installation of spyware on their laptop jointly filed a brief with the franchisor, with whom they recently settled their claims, opposing the franchisee’s motion to compel production of the confidential settlement agreement, asserting that a settlement is irrelevant to any remaining claims and defenses in the case (Crystal Byrd, et al. v. Aaron’s Inc., et al., No. 1:11-cv-00101, W.D. Pa.).

  • October 07, 2019

    Default Judgment Entered For Hotel Franchisor Enforcing Arbitration Award

    GREENBELT, Md. — A federal judge in Maryland on Sept. 23 entered judgment by default in favor of a hotel franchisor against a former franchisee in the amount awarded by an arbitrator when the franchisee failed to pay certain contractual obligations following foreclosure (Choice Hotels International, Inc. v. Rahi Corp., et al., No. 18-2955, D. Md., 2019 U.S. Dist. LEXIS 161683).

  • October 07, 2019

    Ohio Federal Judge Confirms Arbitration Award In Favor Of Franchisor

    AKRON, Ohio — An Ohio federal judge on Oct. 2 confirmed an arbitration award in favor of a franchisor because the defendants involved in the dispute over a breach of a franchise agreement pertaining to the operation of adult day care service facilities previously agreed that the arbitration agreement was binding on them (Sarah Adult Day Services Inc. v. Beyda Adult Day Care Center LLC et al., No. 19-614, N.D. Ohio, 2019 U.S. Dist. LEXIS 171125).

  • October 07, 2019

    Domino’s Pizza’s Petition Over Website Accessibility Denied By Supreme Court

    WASHINGTON, D.C. — In its Oct. 7 order list, the U.S. Supreme Court declined to enter the debate over what obligations the Americans With Disabilities Act (ADA) imposes upon a website operator in terms of making a website accessible to people with disabilities, denying a petition for certiorari by Domino’s Pizza LLC in a lawsuit brought by a blind man (Domino’s Pizza LLC v. Guillermo Robles, No. 18-1539, U.S. Sup.).

  • October 02, 2019

    Split 9th Circuit:  McDonald’s Isn’t Joint Employer Liable For Overtime Claims

    SAN FRANCISCO — McDonald’s Corp. and its subsidiaries aren’t a joint employer of franchised locations' workers and can’t be found liable for workers’ overtime claims, a split Ninth Circuit U.S. Court of Appeals panel ruled Oct. 1 (Guadalupe Salazar, et al. v. McDonald’s Corp., et al., No. 17-15673, 9th Cir., 2019 U.S. App. LEXIS 29500).

  • October 02, 2019

    Panel:  Gastropubs Franchisor Violated BOPA By Not Attaching A Guarantee

    TOLEDO, Ohio — A franchisor of gastropubs and its owner and manager violated the Ohio Business Opportunity Act (BOPA) by failing to attach a guarantee to a franchise agreement, an Ohio appeals panel held Sept. 30, reversing a lower court’s denial of summary judgment to a franchisee and grant of summary judgment to the franchisor (Burger Dynasty, Inc. v. Bar 145 Franchising, LLC, et al., No. L-19-1027, Ohio App., 6th Dist., 2019-Ohio-4006).

  • October 02, 2019

    5th Circuit:  Worker May Sue For Firing After Not Lying To Get Out Of Jury Duty

    NEW ORLEANS — A former Taco Bell franchisee’s worker who alleges that he was fired for refusing to lie to get out of jury duty may proceed with his lawsuit as the trial court erred in finding that there was no private cause of action under the relevant Mississippi statute and in finding no genuine dispute of material fact, a Fifth Circuit U.S. Court of Appeals panel ruled in a Sept. 27 per curiam opinion (Maxwell Simmons v. Pacific Bells, L.L.C., No. 19-60001, 5th Cir., 2019 U.S. App. LEXIS 29231).

  • September 30, 2019

    Maryland Comptroller: No Conflict Among States On Maryland Taxation Ruling

    WASHINGTON, D.C. — The Maryland comptroller of the Treasury argues in a Sept. 10 opposition brief with the U.S. Supreme Court that there is no conflict among the states on whether “a physically remote corporation’s exploitation of a state’s markets satisfies the constitutional requirements of substantial nexus for purposes of income taxes on business activity” (Staples, Inc., et al. v. Maryland Comptroller of the Treasury, No. 19-119, U.S. Sup.).

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