Franchise NewsBlast - published legal stories

2008's Eight Great Franchise Trials

Mon, 05 Jan 2009 13:47:16 GMT

Franchise attorneys David Beyer of DLA Piper in Tampa, Florida and Natalma McKnew of law firm Smith, Moore, Leatherwood in Greenville, South Carolina compiled hundreds of franchise cases and presented the year's highlights at the 2008 annual meeting of the American Bar Association's Forum on Franchising.

Due Diligence, Luck and Randomness

Wed, 24 Dec 2008 15:56:52 GMT

There are many fine posters on BMM on the subject of Due Diligence (DD). Some of these are legal experts, some are scholars, and some are, like I am, from the school of hard knocks. Over 17 years as a franchisee, I gained what seemed like a lifetime of education about the franchise process.

Another Fifteen Franchisees Sue Dream Dinners Attorneys

Tue, 23 Dec 2008 15:30:01 GMT

SNOHOMISH, Wash. (Blue MauMau) - Fifteen Dream Dinners franchisees are suing the attorneys of the meal-assembly franchisor for failure to comply with franchise laws in preparing the Uniform Franchise Offering Circular (referred to before July 2008 as the Franchise Disclosure Documents).

Hollywood Tans Franchise Lawsuit Documents

Tue, 23 Dec 2008 16:10:02 GMT

Four operators of Hollywood Tans franchises located in three states allege that Hollywood Tans and its leasing company induced them into "entering into unconscionable franchise agreements, defrauded them by sending them deceptive and inflated invoices, and violated the Racketeer Influenced and Corrupt Organizations Act ("RICO")."

Make & Take Gourmet, Bellso Serve Up Franchise Fraud To Go

Tue, 23 Dec 2008 15:50:02 GMT

Michele Bellso and her ill-fated Make and Take Gourmet meal assembly kitchen franchise chain continue to provide compelling examples of how NOT to start and run a franchise chain. Their newest lesson plan includes a special guest appearance by, pound for pound, the hardest working franchise enforcement agency: the Maryland Attorney General.

Dunkin' CEO Replaced by Papa John's CEO

Thu, 25 Dec 2008 16:00:02 GMT

CANTON, Mass. (Blue MauMau) - Jon Luther, CEO of Dunkin' Brands, will be replaced by Papa John's retiring CEO, Nigel Travis. While Blue MauMau was this evening confronting Stephen J. Caldeira, Dunkin' Brands chief global communications officer, as to whether CEO Jon Luther was stepping out of his position, the Boston Globe published its report, complete with a statement from Caldeira. Although Caldeira would only confirm to us that Luther was not leaving the company, he refused to verify that he was leaving his position as CEO. He stated through his PR director, "I am not able to share any more information this evening."

Franchise Consultant Teaches Franchise Agreement

Thu, 04 Dec 2008 15:40:00 GMT

The FDD - Franchise Disclosure Document and Franchise Agreement isn't so scary; in fact, it is typically a standardized document brimming with franchise information

Franchisee Awaits Jury Trial after Four-Year Battle with Dunkin' Donut

Mon, 24 Nov 2008 14:08:20 GMT

PROVIDENCE, R.I. (Blue MauMau) - When Irwin Barkan began his business relationship with Dunkin' Donuts and Baskin-Robbins in 2001, he had no idea he would be dumped into a quagmire of litigation costing him millions.

Franchise Arbitration: US versus Ontario Law

Thu, 20 Nov 2008 20:05:40 GMT

How much can Canadian franchise law learn from US law? Most of our franchise specific law is less than 5 years old, while US franchise specific law is much richer. One place Ontario franchise law could look to, as something to avoid, is the excessive cost of determining whether a franchise dispute should be decided by an arbitrator or by the Courts.

Australia to Revise Regulation of "Unconscionable Conduct"

Tue, 25 Nov 2008 16:00:01 GMT

SYDNEY (Blue MauMau) - The Australian Senate Standing Committee on Economics heard from Professor Frank Zumbo at a public hearing into whether to apply a statutory definition of "unconscionable conduct" into Trade Practice Act 1974. While there were a number of speakers it appeared that all opinion, excluding the ACCC's, conceded to the recommendations, either in part or in full, from Professor Zumbo.

Court or Arbitration for Franchise Disputes in Ontario

Fri, 21 Nov 2008 15:30:00 GMT

How much can Canadian franchise law learn from US law? Most of Canada's franchise specific law is less than 5 years old, while US franchise specific law is much richer. One place Ontario franchise law could look to, as something to avoid, is the excessive cost of determining whether a franchise dispute should be decided by an arbitrator or by the Courts.

Class Action and Choice-of-Law

Sun, 23 Nov 2008 15:30:01 GMT

It is expensive for a franchisee to bring suit against their franchisor, particularly where they must litigate in a distant state. Litigation is expensive, and it helps to have several plaintiffs contributing to the legal fees and expenses. For this reason, franchisees seeking to act against their franchisor often attempt to be certified as a class.

Is Hotel Franchising Important?

Tue, 18 Nov 2008 14:25:09 GMT

Two thoughts have recently come to mind in regards to hotel franchising. The first is a legal development out of California that franchisors should take note.

Sixth Circuit Sends Coffee Beanery Franchisees to Court

Tue, 18 Nov 2008 14:23:18 GMT

ANN ARBOR, Michigan (Blue MauMau) - The Sixth Circuit Court handed down its amended opinion Friday in the ongoing litigation between the Coffee Beanery and franchisees WW, LLC, under Richard Welshans and Deborah Williams. It states, ". . . we REVERSE the judgment of the district court and VACATE the Arbitrator's award." Again it declares, ". . .

Overregulation in Iowa

Wed, 12 Nov 2008 14:08:00 GMT

A partner in the law firm DLA Phillips Fox in Australia cites Iowa as an example of what happens when a government over-regulates franchisors.

Australian Case: Withholding Consent to Transfer Franchise

Wed, 12 Nov 2008 14:07:15 GMT

Franchisees in Australia beware! A franchisor may withhold consent to transfer a franchise to a 3rd party if it goes against the interest of the franchisor's known policies and future development plans. Read the case summary here.

ABA Forum Elects First Franchisee Lawyer as Chair

Tue, 11 Nov 2008 01:49:03 GMT

MINNEAPOLIS (Blue MauMau) - Ronald K. Gardner, Jr., Managing Partner of the Dady & Garner law firm, has been elected as Chair of the American Bar Association's Forum on Franchising, the 2,250 member national association of franchise lawyers. "I am thrilled to have the opportunity to lead such a distinguished organization," Gardner said. "This election proves what I and many others have been saying for years: the Forum is a meritocracy. If you work hard and continually strive to make positive contributions to the Forum, you will be rewarded with more opportunity, regardless of your views on the issues confronting the various constituencies involved in the franchise relationship," he added.

EXCLUSIVE: Cold Stone Explains Battle With IRS

Tue, 11 Nov 2008 15:40:00 GMT

SCOTTSDALE, Ariz. (Blue MauMau) - Last Tuesday, Joshua Becker, the senior vice president and assistant general counsel of Cold Stone Creamery alerted its franchise community of an article in the November/December issue of Franchise Times magazine by this reporter. Becker explained that the piece, Cold Reality: Ice Cream Franchise Takes on IRS, reported that Cold Stone had sued the Internal Revenue Service in federal court in Arizona surrounding the issuance of several levies on the properties of former franchisee and area developer Sean Brown.

The Weakest Link: Selecting Expert Testimony without Daubert in Mind

Fri, 07 Nov 2008 18:07:56 GMT

An expert on franchise lawsuit expert testimonies has released a study concluding that one of the weakest links that often sinks franchisee lawsuits is the weakness of their expert witness' testimony.

Dream Dinners CEO Focused on Business Model, Not Litigation

Tue, 04 Nov 2008 19:22:38 GMT

SNOHOMISH, Wash. (Blue MauMau) - CEO Darin Leonard said he came into Dream Dinners last February with his eyes wide open in regards to the litigation the company was facing. "We can never predict the outcome, but we believe we will prevail on all the merits of the cases," Leonard said in an interview this week. "We have not settled and I have shared with my organization that it is not my intent to. But you never know."

Dream Dinners, Attorneys Sued for Illegal Earnings Claims

Mon, 27 Oct 2008 14:50:15 GMT

SNOHOMISH, Wash. (Blue MauMau) - In building a meal preparation business on the notion of making life easier for families, founders Stephanie Allen and Tina Kuna proclaim on their Dream Dinners' website, "To glorify God, we help people enjoy wholesome, nutritious, quality meals they prepare while having fun." But two franchisees in Springfield, Ohio have had anything but fun since buying their franchise in 2005. They are suing the franchisor and now its attorneys for violation of the Washington Franchise Investment Protection Act and breach of contract.

Dream Dinners CEO Responds to Latest Litigation

Mon, 27 Oct 2008 14:45:51 GMT

SNOWHOMISH, Wash. (Blue MauMau) - Although Dream Dinners refused to respond to specific questions regarding the current litigation filed by franchisees Nicole and Eric Turner against the meal preparation franchise, CEO Darin Leonard did release the following statement this morning:[...]

The Franchise Agreement Explained

Tue, 21 Oct 2008 13:20:03 GMT

After the Franchise Disclosure Document, the next important piece of paper when buying a franchise is the franchise agreement. It is the written document that governs the relationship between the franchisor and the franchisee.

Before you sign . . .

Tue, 21 Oct 2008 13:19:18 GMT

Make sure you understand all the legal documents regarding buying a franchise before meeting lawyers

Forum & Venue Clauses in Bankruptcy

Tue, 21 Oct 2008 13:18:22 GMT

A recent federal court decision reinforces judicial deference to forum and venue clauses in business contracts.