May 21, 2007

Burger King to Lose Head for Dragging Feet in the Trans Fat Revolution?

FTC

According to this Center for Science in the Public Interest press release, Burger King is the “biggest chain without firm plans to convert to safer alternatives to partially hydrogenated oils.” The Center has filed a lawsuit in Washington, D.C. seeking an order to prevent Burger King from “using the deadly trans-fat-laden ingredient, or at least require prominent warning notices on [its] menu boards.” The press release acknowledges, however, that Burger King will comply with recent Philadelphia and New York trans fats bans. Other recent blog postings have addressed trans fat developments at other chains.

Posted by franchiselawblog at 09:48 AM | Comments (0)

May 10, 2007

UPS Franchise Disputes Mount

FTC

As chronicled in recent posts, UPS has not had an easy time with its franchisees of late. This article describes the newest franchisee dispute, this time involving money rather than morals, including franchisee claims that the UPS franchisor cheats franchisees by back-charging them for higher shipping rates. A franchisee lawsuit now pending in federal court in San Francisco seeks class action status on these new claims.

Posted by franchiselawblog at 05:04 PM | Comments (0)

Fried Chicken is Bad for Me?

FTC

Recent posts have addressed the recent trans fat consciousness-raising effort and the banning of trans fats (voluntarily or involuntarily) from quick serve restaurants. In a no-nonsense opinion, described in this article, a federal judge has dismissed the a doctor’s lawsuit accusing Kentucky Fried Chicken of not telling customers about the trans fats used in its frying process. The judge not only concluded that the doctor was not the right party to sue, but also noted that, “If customers are increasingly aware of trans fat, where to they expect to find it if not in fast food restaurants?” Although it does not appear to have been a factor in the dismissal, KFC has now switched to a new soybean oil for frying and no longer uses trans fats. Apparently avoiding trans fats isn’t enough for everyone, however. According to this PETA press release, “three sexy PETA members” would lead a naked protest at KFC’s franchise association meeting in Troy, Michigan.

Posted by franchiselawblog at 04:46 PM | Comments (0)

TMI?

Franchise companies and others are the targets of lawsuits involving credit card purchases, including allegedly printing too much customer information on their receipts. According to this article, companies on the receiving end of lawsuits include Rite Aid Corp., Wendy’s International Inc., FedEx Corp., TJX Cos., Inter Ikea Systems B.V., In-N-Out Burger and Melting Pot restaurants.

Posted by franchiselawblog at 04:29 PM | Comments (0)

They’ll Be Back....

FTC

When is a terminator not a terminator? When it’s Quiznos. As described in this article, a federal judge in Colorado has granted a preliminary injunction to Quiznos franchisees, allowing them to continue operating their stores, even though Quiznos terminated their franchise agreements. The franchisees are members of a group of Quiznos franchisees calling themselves the Toasted Subs Franchisee Association. Quiznos terminated the franchisees for their participation in the Association, accusing them of “using hostile efforts to damage the company’s reputation.” Quiznos sent letters terminating the franchisees after the Association posted on its website the suicide note of a franchisee who had been embroiled in litigation with Quiznos. The injunction allows the terminated franchisees to continue operating their stores pending trial on their wrongful termination claims against the company.

Posted by franchiselawblog at 04:23 PM | Comments (0)