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Mealey's Franchise

  • 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.

  • November 16, 2023

    With Deal Proposed In Reinsurance Collateral Row, Debtors Seek Closure Order

    ST. LOUIS — Limited liability companies that owned and operated dozens of Jack in the Box restaurants under franchise agreements have asked a federal bankruptcy court in Missouri to close their jointly administered Chapter 11 cases.

  • November 09, 2023

    U.S. High Court Seeks Response From Domino’s Drivers To FAA Exemption Petition

    WASHINGTON, D.C. — The U.S. Supreme Court requested a response from Domino’s Pizza LLC truck drivers (D&S drivers) to a petition by the pizza franchise arguing that the circuit courts are split on whether local delivery drivers are engaged in interstate commerce and thus exempt from the Federal Arbitration Act (FAA).

  • November 09, 2023

    7-Eleven Franchisees Tell Massachusetts High Court They Trigger ABC Test

    BOSTON — 7-Eleven franchisees trigger the Massachusetts test for independent contractor misclassification, also known as the “ABC” test, as the franchisor’s “revenue is directly dependent on the franchisees’ work of running the stores,” five franchisees argue in a brief filed in the Massachusetts Supreme Judicial Court after a question concerning the franchisees’ contractual obligations was certified by the First Circuit U.S. Court of Appeals.

  • November 06, 2023

    Cleaning Franchisees Seek Preliminary Approval Of $30M Classification Settlement

    SAN FRANCISCO — Cleaning service franchisees who allege that they have been misclassified filed a motion in a federal court in California seeking preliminary approval of a class settlement under which Jan-Pro Franchising International Inc. will pay $30 million and make changes to its business practices that the plaintiffs state will benefit California franchisees.

  • October 31, 2023

    Domino’s Seeks U.S. High Court Ruling On Local Delivery Drivers And FAA

    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 in the U.S. Supreme Court a waiver of their right to respond to Domino’s petition for writ of certiorari in which the pizza franchise argues that circuits are split on whether local delivery drivers are engaged in interstate commerce.

  • October 23, 2023

    Housekeeper Files Class Suit Against DoubleTree Under Los Angeles 2022 Ordinance

    LOS ANGELES — A hotel housekeeper filed a class complaint in a California court accusing her employer of violating the Los Angeles Hotel Worker Protection Ordinance; her attorneys say it’s the first case to be filed under the 2022 ordinance intended to protect hotel workers from sexual assault.

  • October 16, 2023

    Judge Dismisses State Claims Ahead Of Trial In Real Estate Commission Class Case

    KANSAS CITY, Mo. — A federal judge in Missouri on Oct. 13 dismissed two state law claims in a class case by home sellers who accuse the National Association of Realtors (NAR) and real estate franchisors of antitrust violations when it comes to commissions, leaving for trial only the claim alleging violation of Section 1 of the Sherman Act.

  • October 12, 2023

    SBA Argues It Can Deny PPP Loan Forgiveness If Borrower Was Never Eligible For Loan

    AMARILLO, Texas — In an action 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 federal government defendants cross-moved for summary judgment while at the same filing their response to the dealer’s prior motion for summary judgment.

  • September 28, 2023

    Trial Pushed To January After Settlement Notice Filed In Classification Case

    SAN FRANCISCO — In a Sept. 27 docket entry following a status conference, the October 2023 trial date in a cleaning service franchisee classification class dispute was vacated with a note that it will be reset in January 2024 after the franchisor filed a notice that the parties reached a settlement agreement that will provide up to $30 million.

  • September 26, 2023

    Hearing Scheduled After Settlement Notice Filed In Franchisor Classification Case

    SAN FRANCISCO — A hearing was scheduled for Sept. 27 in a cleaning service franchisee classification class dispute after the franchisor filed a notice that the parties reached a settlement agreement that will provide up to $30 million; the federal judge in California stated in the order that the status of the settlement and whether to vacate the October trial date will be considered at the hearing.

  • September 21, 2023

    Taco Bell Worker Settles Biometric Data Case After Arbitration Order

    EAST ST. LOUIS, Ill. — A Taco Bell employee who alleged in a putative class complaint that workers’ biometric data is collected, used and stored in violation of state law dismissed the case with prejudice on Sept. 20 in a federal court in Illinois after filing a notice of settlement.

  • September 20, 2023

    Federal Judge Seeks Amended Class Settlement Motion In Papa John’s No-Poach Case

    LOUISVILLE, Ky. — A federal judge in Kentucky denied preliminary approval of a $5 million class settlement proposed in a case accusing a pizza chain franchisor of violating the Sherman Act by coordinating no-poach agreements between its franchisees, finding that insufficient information was supplied regarding adequacy, typicality and predominance.

  • September 19, 2023

    RE/MAX Agrees To Settle Real Estate Commission Antitrust Class Claims For $55M

    CHICAGO — Home sellers and RE/MAX LLC filed a notice of pending settlement and joint motion stay an antitrust case as to RE/MAX on Sept. 18 in a federal court in Illinois; on the same day, RE/MAX filed a Form 8-K with the U.S. Securities and Exchange Commission stating that it agreed to pay a total settlement amount of $55 million.

  • September 06, 2023

    1st Circuit Sends 2nd Question To Mass. High Court In 7-Eleven Franchisee Case

    BOSTON — A First Circuit U.S. Court of Appeals panel certified a second question to the Massachusetts Supreme Judicial Court (SJC) in a case that has been litigated for nearly six years by 7-Eleven franchisees challenging their classification as independent contractors.

  • August 30, 2023

    Franchisor Seeks Emergency Stay While Appealing Ruling In Classification Class Case

    SAN FRANCISCO — A cleaning service franchisor filed an emergency motion in the Ninth Circuit U.S. Court of Appeals seeking to completely stay proceedings in the trial court while it appeals denial of its motion to compel to arbitration absent class members in a misclassification case; the motion was filed one day after the trial court issued an order clarifying that the trial scheduled to commence Oct. 16 “will proceed as to all class members except the 125 and will include even the 125 if our court of appeals rules in time.”

  • August 28, 2023

    Class Claims Over Size Of Burger King’s Burgers Partially Dismissed

    MIAMI — A putative class complaint accusing Burger King Corp. of overstating the size of its Whoppers and other beef patties in advertisements was partly dismissed by a federal judge in Florida who found in part that the plaintiffs’ allegations that consumer protection laws in all 50 states and the District of Columbia were violated failed to sufficiently support each cause of action, and a nationwide Florida Deceptive and Unfair Trade Practices Act (FDUTPA) claim appeared only in their response and not in their amended complaint.

  • August 15, 2023

    Voluntary Dismissal Of Sandwich Class Suit Granted; Subway Denied Sanctions

    OAKLAND, Calif. — A federal judge in California granted a consumer’s motion, citing her pregnancy, to voluntarily dismiss her putative class complaint accusing a sandwich franchisor of deceptively labeling its tuna salad, sandwiches and wraps and denied the franchisor’s motion for sanctions in the amount of its attorney fees and costs, finding that it failed to show that they would be appropriate.

  • August 10, 2023

    JMOL Entered For Jack In The Box On Unpaid Meal Break Claim

    PORTLAND, Ore. — A federal judge in Oregon entered judgment as a matter of law (JMOL) for Jack in the Box Inc. on meal break claims and struck lost meal break wages and meal break penalty wages awarded as part of an October 2022 verdict to a class of workers bringing various wage-and-hour claims, finding that before June 1, 2010, Oregon law required employees to be paid only for the time spent working when a 30-minute meal break was cut short.

  • August 08, 2023

    6th Circuit Reverses Arbitration Order In Papa John’s Driver’s Expenses Suit

    CINCINNATI — A Sixth Circuit U.S. Court of Appeals panel reversed a trial court’s arbitration order in a putative class and collective complaint by a pizza delivery driver alleging that he and others were denied their full vehicle-related business expenses, finding that the lower court neglected to fully explore whether the lead plaintiff himself assented to such an agreement.

  • July 26, 2023

    After Remand, 9th Circuit Affirms Arbitration Denial In Truck Driver’s Class Case

    SEATTLE — The Ninth Circuit U.S. Court of Appeals in a case remanded by the U.S. Supreme Court found that Southwest Airlines Co. v. Saxon is not “clearly irreconcilable” with Rittman v. Amazon.com, Inc. and for the second time affirmed a trial court’s denial of arbitration in a class case by Domino’s Pizza LLC truck drivers (D&S drivers) alleging unreimbursed business expenses and violation of California’s unfair competition law.

  • July 25, 2023

    Franchise Agrees To $50,000 Payment, Providing Interpreters In EEOC Disability Suit

    FORT PIERCE, Fla. — A federal judge in Florida approved an agreement between the Equal Employment Opportunity Commission and a fast-food franchise in a disability bias lawsuit under which the employer will pay $50,000 and provide American Sign Language (ASL) interpreters when requested by applicants and employees for interviews, orientations, training and performance reviews.

  • July 13, 2023

    Customer, McDonald’s: AI Voiceprint Class Lawsuit Dismissed With Prejudice

    CHICAGO — McDonald’s Corp. and a customer who alleged in a putative class lawsuit that the franchisor violates the Illinois Biometric Information Privacy Act (BIPA) by collecting voiceprints to place drive-through orders filed a stipulation of dismissal on July 12 in a federal court in Illinois.