A Maryland federal district court denied a restaurant franchisor’s motion to dismiss, concluding that a restaurant manager at a franchised location alleged sufficient facts to support a finding that the franchisor is a joint...more
A Texas court of appeals affirmed judgment in favor of a plaintiff who claimed a franchisor was vicariously liable for a franchisee’s employee’s wrongful conduct....more
A Michigan federal district court denied a franchisor’s motion to dismiss claims under Title VII of the Civil Rights Act of 1964 and Michigan law, and claims alleging retaliatory termination and sexually hostile work...more
6/30/2023
/ Civil Rights Act ,
Employer Liability Issues ,
Employment Litigation ,
Franchisee ,
Franchisors ,
Hiring & Firing ,
Hostile Environment ,
Joint Employers ,
Motion to Dismiss ,
Retaliation ,
Sexual Harassment ,
Title VII
A federal appellate court held that Burger King and its franchisees may violate Section 1 of the Sherman Act (antitrust) by engaging in concerted action when entering into “no-hire” agreements. The appellate court reversed...more
Patel v. 7-Eleven, a case in Massachusetts, has been closely watched since the ABC test took hold of franchise relationships in employee misclassification cases across the country.
A putative class of 7-Eleven franchisees...more
3/31/2022
/ 7-Eleven ,
ABC Test ,
Disclosure Requirements ,
Franchisee ,
Franchises ,
Franchisors ,
FTC Franchise Rule ,
Hiring & Firing ,
Independent Contractors ,
MA Supreme Judicial Court ,
Misclassification ,
Preemption ,
Putative Class Actions ,
Right to Control
A Texas appeals court affirmed a lower court judgment in favor of Pizza Hut and its franchisee for claims of an alleged sexual assault by a delivery driver. The appellate court held Pizza Hut was not liable for the...more
Washington State’s Attorney General settled a case against sandwich franchisor, Jersey Mike’s, over antipoaching provisions in its franchise agreements. Since 2018, Washington State has made agreements with more than 60...more
12/20/2019
/ Antitrust Violations ,
CID ,
Civil Investigation Demand ,
Contract Terms ,
Employment Contract ,
Franchise Agreements ,
Franchisors ,
Hiring & Firing ,
No-Poaching ,
Restrictive Covenants ,
Settlement ,
State Attorneys General