Competitor News

The tong war between Tim Horton’s and its own franchisees continued in a big way this past week with the RBI-owned brand moving against a franchisee in Cape Bretton and stripping the franchise owner of his 4 franchises. The franchisor claimed that franchisee David Hughes, who also happens to serve as the head of the…

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Competitor News

More angst in the Great White North (Franchisee Association, that is) as Tim Hortons US franchisees have filed suit against the Canadian coffee and donut chain alleging unreasonable charges for food and supplies. Tim Horton’s owns the supply chain and is alleged by the owners to be charging considerably more than other brands. The franchisees’…

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Encroachment Damage Award Tops $8 Million

A California jury finally decided damages this week in a landmark lawsuit the same jury decided in favor of the plaintiff franchisees last December – and good things are really worth the wait. The 12 men and women on the jury awarded the plaintiff franchisees $8.8 Million in damages! The husband and wife franchisee team…

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Then A Big Bang, in Court

In a precedent setting decision rendered earlier this month in a California court, noted franchisee attorney Robert Zarco (Zarco Einhorn, Salkowski & Brito, P.A.) won a significant jury verdict against franchisor El Pollo Loco, Inc. that the company breached the implied covenant of food faith and fair dealing by failing to offer new encroaching restaurants…

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Miscellaneous

Qdoba franchisees are the latest group to see the wisdom in the old adage that there is strength in numbers. Franchise owners of the casual Mexican food restaurant have created their own franchisee association to protect their interests, especially in the face of some of the challenges the chain has recently faced and some potential…

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Franchisee Association Sues!

No, not us! The Great White North Franchisee Association (GWNFA), a new organization representing the interests of Tim Horton’s franchise owners, has filed a lawsuit seeking class action status against Restaurant Brands International. The lawsuit alleges that RBI, which purchased the Tim Horton’s chain just under 3 years ago, has been collecting funds from Tim’s…

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And, Dunkin’ Doing To Baskins?

The Association of Independent Baskin Robbins Franchisee Owners (AIBRFO) filed suit in US District Court in Massachusetts Thursday against Baskin Robbins, LLC asking for relief and costs from a “commercial factor fee” that its franchisees have been paying for many years, levied through Dean Foods. This “commercial factor fee” is a special fee not relating…

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Dunkin’ Doings, Or Maybe Didn’ts

A 13-year old court case has finally been put to bed once and for all as the Supreme Court of Canada rejected a final appeal by Dunkin Brands Canada, Ltd.  The case was brought in 2003 by Dunkin’ franchisees in Quebec province who alleged that Dunkin’ didn’t live up to its obligation to promote the…

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Hawaii Franchising Legislation Filed

Legislation amending Hawaiian law on franchising was filed last week and will be considered again this session by the Hawaii House of Representatives.  HB2192 would make pre-dispute forum selection clauses in franchise agreements voidable under Hawaiian law.  Currently, franchise provisions can require adjudication of disputes in out-of-state jurisdictions, thousands of miles away.  This makes judicial…

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Connecticut Advances “Employer Punishment Bill”

The admonition of Benjamin Franklin came to mind as the Connecticut General Assembly’s Labor and Public Employees Committee this week gave initial approval to HB 6791, an act that will require employers with 500 or more employees to pay a fine of $1/hour for each employee that is not paid at least $15/hour.  On a…

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