Monthly Archives: May 2015
For Unlawful Termination of a Franchise Agreement, Franchise Lawyers Can Help
May 6, 2015 - Franchise Articles by Jeffrey M. Goldstein |Did your franchisor suddenly terminate your franchise agreement without giving you the required 30-day minimum written notice? Under the Franchise Rule, the franchisor is required to give a minimum of at least 30 days, in written form, before terminating a franchise agreement. Franchise lawyers can help you determine if the termination was unlawful. Protect yourself against an unlawful termination.
October 2014 Court Wrap-Up: Featuring Dunkin’ and Popeye’s
May 6, 2015 - Franchise Articles by Jeffrey M. Goldstein |Federal Court Drives Final Nail in Dunkin’ Franchisee’s Coffin Dunkin Donuts Franchising, LLCv. Claudia I, LLC, and Claudia I, LLC v. Spring Hill Realty Inc., 2014 WL 5353724 (E.D. Pa., Oct. 20, 2014). After a long and litigious period, the United States District Court for the Eastern District of Pennsylvania granted Dunkin’ a permanent injunction against franchisee Claudia on October 20, 2014. This case is a prototypical example of what can happen when a franchisor loses trust, faith and patience with an underperforming franchisee. In this regard, it is important to note that the franchisee in this case also tightened the legal noose around its neck by unhelpfully focusing its attention and resources on relatively minor infractions of the franchisor and landlord rather than the most detrimental and objectionable franchisor conduct. This left Dunkin’ in the driver’s seat from the time of the execution of the franchise agreement through the final decision of the Court.
Pizza Delivery, Pot Smoking, Seatbelts, and a $2.28 Million Judgment Against the Pizza Franchisor
May 5, 2015 - Franchise Articles by Jeffrey M. Goldstein |This case shows that, as predicted last week, a mid-western jury answers to nobody, finding, in contrast to recent California courts, that franchisors can be subjected to serious vicarious liability for the conduct of their franchisees’ employees. In Bruntjen v. Bethalto Pizza, LLC, 2014 IL App (5th) 120245, 18 N.E.3d 215, 385 Ill.Dec. 215(2014) (decision follows below under comments), a passenger in a van that was struck by the car being driven by a pizza delivery driver brought an action against the driver, the driver’s employer (the franchisee), the franchisor of driver’s employer, and others for negligence. The Circuit Court of Illinois, Madison County, entered judgment in favor of the injured passenger for approximately $2.28 million. The appeal was rejected and the judgment affirmed.
