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Taco Bell Meat Integrity Questioned in Class Action Lawsuit
Feb 02, 2011January 31, 2011 - The Yum! brand is under scrutiny after one of its flagship franchises, Taco Bell, has been named in a class action lawsuit regarding truth in advertising.
The Consumerist reports that the class action lawsuit was filed after the plaintiff alleged that their "seasoned beef" is only 36% meat and the rest is "extenders" such as oats. The class action suit filed by Montgomery, Alabama law firm Beasley Allen does not actually seek any monetary damages beyond attorneys' fees and only requests that Taco Bell puts truth in their advertising by changing the claims on their product contents.
Taco Bell president Greg Creed released a statement on January 26 responding to the lawsuit's allegations. He claims that the beef used in their locations is USDA approved 100% beef, simmered in a proprietary mix of spices, and all ingredients are listed on the website.
As for the commentary on fillers and the percentage of what's really beef in the mix, according to Taco Bell it's 88% beef with the remaining 12% a mix of water for moisture, spices, and oats to "contribute to the quality of our product." The focus of the lawsuit is on that alleged 12%, which the plaintiff claims is much higher.
Taco Bell and its parent company, Yum! Brands, are fighting the lawsuit as it has raised many consumers' questions regarding just what they are consuming when the product description reads "seasoned beef".
This type of issue can be a frustrating blow to a franchisor as it harms the integrity of the brand but also puts the innocent franchisees in a tough position. When franchise names are spotlighted in the media for a lawsuit regarding their products or practices, the franchisees are often harmed in the crossfire. As a franchisor, you should develop a plan of action with your New Jersey franchise lawyer to deal with such issues if they arise in the future of your franchise system.
Contacting a New Jersey Franchise Lawyer
If you are an entrepreneur who is interested in franchising your business there is a lot you need to know. For a limited time, get New Jersey franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New Jersey and how he assists entrepreneurs franchise their business nationwide. -
Franchising Documentary Damages Cold Stone Creamery Franchises
Jan 17, 2011January 17, 2011 - CNBC cable network may face legal action over a documentary it produced on the untold stories of franchising. One of its featured franchises, Cold Stone Creamery, felt it was inaccurately represented because the documentary focused on a single incident.
The New York Post reports that the ice cream company felt they were misrepresented when CNBC chose to focus the story of their franchise operations on one sour case involving former Florida franchisee Cecil Rolle. Rolle had previously filed a lawsuit against Cold Stone Creamery and lost.
Some of Rolle's less-than-positive comments on the franchise world involved him mentioning he had to talk 5 franchisees out of committing suicide. Cold Stone Creamery was given a chance to participate in the program but declined.
Aside from Rolle's comments, the CNBC documentary also portrayed Cold Stone Creamery as a ruthless firm that charged franchisees hidden expenses, relied on kickbacks from its vendors, and required franchisees to purchase equipment from specific companies also controlled by Cold Stone.
After the initial airing, Cold Stone Creamery contacted CNBC regarding their issues with the documentary. CNBC has requested an on-camera interview to allow Cold Stone Creamery to give their angle on the story, but so far the ice cream franchise has yet to respond. Meanwhile, the documentary was first edited and then recently pulled from rotation.
As a franchisor, protecting the reputation of your franchise is important to the continued growth and success of your business. When you find your franchise is being threatened by hostile franchisees or bad press you may need the help of a New York franchise attorney to set things straight. An experienced attorney can help you handle franchise litigation and mediate any problems that may arise between you and your franchisees.
Contacting a New York Franchise Attorney
If you are an entrepreneur who is interested in franchising your business there is a lot you need to know. For a limited time, get New York franchise attorney Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide. -
Noble Roman’s Inc. Wins One Lawsuit, Starts Another
Jan 13, 2011January 3, 2011 - The legal battle is only halfway over for Noble Roman's Inc., which manages the chains of Noble Roman's Pizza and Tuscano's Italian Style Subs restaurants.
Pizza Marketplace.com reported on the December 23, 2010, judgment by the Superior Court in Hamilton County, Indiana, which found that Noble Roman's Inc. was not guilty in the allegations of fraud brought about by 10 groups of franchisees. The originating lawsuit began in June 2008 when the franchisees filed complaints against their parent franchise.
The allegations included that Noble Roman's coerced them into purchasing franchises for traditional locations, doing so by misrepresentation and omission of material facts. The December court ruling found in favor of Noble Roman's and these allegations deemed meritless. The plaintiffs were seeking $5.1 million in compensatory and punitive damages.
After the lawsuit concluded Noble Roman's switched their focus to their still ongoing counter-claim, which was filed back during the original lawsuit. Their claim is for damages resulting from contract breeches and seeks $3.6 million plus attorney's fees.
Noble Roman's counter-claim comes after they expressed discontent with the financial and personnel resources they had to allocate during the original lawsuit's duration. The claims against each franchisee involved in the original lawsuit are all pending.
To add to the legal matters on Noble Roman's plate, a separate claim from the first was filed against the corporation under the Indiana Franchise Act. An appeal for summary judgment by Noble Roman's was denied and the case will proceed.
When developing your franchise system and growing to new franchisees it is important to be honest about incentives and demands for your system. An experienced New York franchise lawyer can help you develop and manage contracts and agreements between you and your franchisees and assist you with any legal action that may arise.
Contacting a New York Franchise Lawyer
If you are an entrepreneur who is interested in franchising your business there is a lot you need to know. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide. -
Successful Franchises Listen to Customer Demand
Jan 12, 2011January 10, 2011 - Augusta, GA - One of the most famous franchise businesses, McDonald's, knows the recipe for success when it comes to managing their franchise locations.
The Wall Street Journal reported the story of franchisees Dee and Christine Crawford who operate 5 McDonald's locations in the Georgia and South Carolina areas. They face a constant struggle to evaluate customer demand as the main McDonald's Corporation releases new products and location amenities.
With the economic decline and shifting views on fast food, chains such as McDonald's have had to seriously evaluate their customers' needs and desires in order to continue to turn a profit. New healthy options, higher-end items, and facility enhancements have helped McDonald's remain profitable during the recession, but franchisees have struggled to keep up with those new programs.
The Crawfords have found failure and success with many of their parent company's new offerings. Older locations have expanded to the 2-lane drive-through design allowing for more traffic and less wait time. On the flip-side, this has also lead to an increase in staffing, with as many as 18 active employees during peak hours.
New menu items have also proven to be a risky addition for many locations to attempt. The "Snack Wraps" created a new food assembly method which proved difficult for employee training. Some locations opted not to carry them, while others creatively held a wrap-making challenge for staff to provide a training incentive
To ensure the success of the McDonald's franchise operations, the corporation has acknowledged the balance that must be maintained between meeting customer desires and keeping locations profitable. In some locations 24-hour stores have flourished while others flopped - all due to the demographics of the location.
When your business is considering franchise locations you must develop a good communication strategy with your franchisees. The local franchisees will be your best connection to your overall customer demand and therefore allow you to tailor your product offerings and location amenities to what is most desired. Allowing flexibility between locations is critical to allowing each franchisee to do what is best for local success.
Contacting a New York Franchise Lawyer
If you are an entrepreneur interested in franchising your business, there is a lot you need to know. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide. -
Kid’s Clothing Store Sues for Trade Secret Theft
Dec 09, 2010According to Freep.com, an Ann Arbor based store called Children's Orchard, which is a retail chain that sells used children's clothing, has filed a lawsuit against two franchise owners in Oklahoma City, for the alleged theft of a trade secret. The lawsuit accuses the franchisees of violating a franchise agreement and a non-compete agreement, as well as stealing Children's Orchard's trade secret.
The lawsuit came after the defendants in the suit opened their own store specializing in the sale of used children's clothing, which they named Upsy Daisy. In the suit, Children's Orchard claims that Tiffany Thomas, the co-founder of Upsy Daisy, and her ex-husband signed a franchise agreement (2005) to own a Children's Orchard store in Oklahoma City for a period of 10 years.
However, in July of 2010, Thomas and her ex-husband abandoned their Children's Orchard franchise, and moved to another location where they opened Upsy Daisy. Thomas claims that no trade secret was stolen in the move.
How a New York Business Lawyer Can help
If you have been the victim of trade secret theft, a New York business lawyer may pursue damages in a lawsuit. In a trade secret theft lawsuit, your New York business lawyer can represent your legal interests.
Contacting a New York Business Lawyer
If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York business lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide. -
Vegas Trademark Dispute Devastates 2 Businesses
Nov 30, 2010As told in a recent article published by the Las Vegas Sun, two small Las Vegas businesses, both with the same name, have been involved in a bitter trademark dispute for the past year and a half. The businesses, which both go by the name of Appliance Doctor, have caused each other so much confusion that one has gone bankrupt, while the other is on the verge.
The business owners involved in the dispute are two Law Vegas couples: the Gravinos and the Jagmins. According to the lawsuit, the Gravinos have been doing business as the Appliance Doctor in Vegas since 1989, while the Jagmin's business did not come about until recently, in 2009. Soon after Sam Gravino found out about the Jagmin's business, he began to receive phone calls from disgruntled customers of the Appliance Doctor.
The only problem was that Sam Gravino had never dealt with the customers who were calling him. Now, Gravino has filed a lawsuit claiming that the Jagmins traded off of the goodwill that the Gravinos had established over their 20 years in business. The suit has demanded more than $20,000 in compensatory and punitive damages, as well as an injunction against the Jagmins.
If you have been involved in a similar trademark dispute, a New York business lawyer may be able to help you resolve your business issues. In a trademark dispute lawsuit, a New York business lawyer can represent your legal interests.
Contacting a New York Business Lawyer
If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York business lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide. -
American IT Companies Lead the Way in Trademark Infringement Lawsuits
Nov 22, 2010November 19, 2010 - According to the U.K.-based website RealBusiness.co.uk, over the last year, American IT companies have been responsible for filing 24% of name infringement claims in the Company Names Tribunal.
As reported by the legal information company Sweet and Maxwell, small software developers across the U.K have been unlawfully using names such as Intel Corporation and Sun Microsystems in connection with their goods and services. In the last 12 months, Intel alone has brought 15 claims against companies that have used its name.
Sweet and Maxwell explains that small startup companies are infringing upon larger companies' names in order to advertise their knowledge of the larger company's products. Without proper authorization to do so, such behavior is generally a case of trademark infringement.
In another prominent case of U.K.-based trademark infringement, Nestlé has filed a claim against Kitty Kat UK, the name of which is confusingly similar to Nestlé's Kit Kat brand.
If you sell franchises in New York and someone has infringed upon your intellectual property, you may send that person (or company) a letter to cease and desist. If you have suffered economic damages because of an act of trademark infringement, you may seek to recover those damages in a formal court of law. To do so, you can get the help of an experienced New York franchise lawyer.
Contacting a New York Franchise Lawyer
If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide. -
Midwestern Burger King Franchisee Files Chapter 11
Jan 20, 2011January 18, 2011 - Burnsville, MN - One Burger King franchisee is showing the stresses of a lackluster economy and increased franchisor pressure after they filed for Chapter 11 bankruptcy protection on December 4th.
The South Florida Business Journal reports that Minnesota-based Duke and King Acquisition Corp. filed the notice with the District of Minnesota's U.S. Bankruptcy Court after debts from various lenders totaled more than $15 million. A $33.2 million loan from Bank of America back in November 2006 still carried a balance of $11 million, while private equity firm Kinderhook Industries of New York City is owed about $2.7 million.
The actual Burger King Corp. is owed nearly $2 million by Duke and King, but according to the struggling franchisee the corporation is partially to blame for the bankruptcy. Pressure to sell many menu items for under $1, especially the double cheeseburger, was costing their stores too much money. After franchisee complaints and a case filed against Burger King Corp. in regards to the under $1 requirement, Burger King began changing some rules, but it was too late for Duke and King.
The debtors, especially Bank of America, hope that Duke and King can recover some losses through the closure of underperforming stores. The bankruptcy judge hearing the case allowed Duke and King to continue paying its employees, vendors and expenses in an amount of $7 million. The company has been claimed to be impossible to reorganize and is seeking buyers.
Parent company Burger King Corp. went private in October 2010 after it was purchased by about $4 billion by a 3G Capital affiliate. Following the purchase, more than 400 employees were laid off in a restructuring strategy. Burger King Corp. declined to comment on the Duke and King bankruptcy and only offered the statement that it buys time for them to "implement a business solution for their restaurants."
Contacting a New York Franchise Lawyer
If you are an entrepreneur who is interested in franchising your business there is a lot you need to know. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide. -
Release of Second Edition of Charles Internicola's Book
Aug 06, 2010Release Date: June 2010
Drawing on the success of his original book, Charles N. Internicola, Esq. has released for publication the "Second Edition" of "An Entrepreneurs Guide to Purchasing a Business or Franchise". In this "second edition" Mr. Internicola tackles issues and concerns faced by business purchasers and individuals considering the purchase of a franchise. Focused on empowering business purchasers and franchisees, the book contains detailed and practical information about business and franchise transactions.
Table of Contents:
i. Introduction
ii. Five Myths that are Wrong and Must be Ignored when Buying a Business or Franchise
iii. Franchise Factors: A General Overview of Franchise Transactions
1. What is a Business?
2. Due Diligence and the Timing of the Due Diligence Process
3. Tangible Assets: Due Diligence Factors to Consider
4. Property Interests and Rights: Due Diligence Factors to Consider
5. Goodwill: Due Diligence Factors to Consider
6. The Nature of the Transaction: Asset Purchase verses Stock Purchase
7. An Overview of the Transaction: The Asset Purchase Agreement
8. Five Mistakes that Will (Almost) Guarantee a Problem after your Business Purchase Closes
9. Conclusion
Supplement
Publisher: Word Association Publishers
ISBN: 978-1-59571-553-1 -
"Must Use" Online Resources When Buying a Business or Franchise
Jan 13, 2011Bank of America's Business Online Community Team names Charles N. Internicola's New York Franchise Law Blog among the top 11 "must use" online resources for buying a business or franchise. Additionally, the Bank of America Business Community Team had the following to say about the New York Franchise Law Blog:
"Written by franchise attorney Charles Internicola, the New York Franchise Law Blog digs into the deeper legal issues surrounding franchises and franchisee/franchisor disputes, many of which are applicable far beyond the local New York area. Internicola's analysis is much more detailed than your typical franchise blog fare, delving into difficult franchise issues like encroachment, promotion and marketing, and intellectual property right of entrepreneurs, to name a few".
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