Tag Archives: franchise

An Inconvenient Ruling

Franchise folly

Although it is based in Texas, 7-Eleven is a household name in several countries. The multinational company offers considerations for franchise opportunities, but also maintains the right to end the contract if certain standards or guidelines are not upheld. A 7-Eleven store owner located in Osaka, Japan, for example, is now ordered to pay $845,000 in damages to the company for failing to remain open 24 hours a day. Starting in 2019, a franchisee, Mitoshi Matsumoto, who opened the store in 2012, decided to close down operation for a few hours every night. The decision to close for five hours each night resulted in a loss of business and an infraction against company policy. Continue reading →

What Are We Eating?

Are we 100% positive?

Despite the previous notion that McDonald’s chicken nuggets are comprised of a pink slime mixture, the company put the debate to rest by supplying the public with a list of ingredients.  While pink slime is not included in the list, there are about ten components in a McNugget, such as white boneless chicken, water, salt, safflower oil, and sodium phosphates.  Although this fast-food item is not exactly 100% chicken, it still remains one of the top favorites among McDonald’s patrons.  Another high-ranking quick service chain, Subway, has become the topic of a similar dispute.  Continue reading →

Subway Franchise Facing Lawsuit for Unpaid Overtime

A toasted lawsuit

A former Subway employee has filed a lawsuit in Washington D.C. against his former employer for unpaid overtime wages. Erwin Zambrano Moya claims that his employer created fictional workers and put some of his hours worked under these “other employees” to avoid paying the additional overtime wages. ” According to the complaint, the owner accomplished this, in part, by paying Moya as if he were multiple workers, thereby keeping the real Moya under 40 hours each week”. Moya stated that he worked up to 70 hours per week, and should have been paid time and a half for 30 of those hours worked. Half of the hours worked were recorded under Moya, and half under another fictional employee name.

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Not Just Another Hot Coffee Lawsuit

Not just hot coffee this time…

In the past, whenever McDonald’s is involved in a lawsuit, we usually expect it to be because of another victim of their hot coffee. Not this time, “McDonald’s workers in three states filed lawsuits against the fast-food chain this week, saying the company engages in a variety of practices to avoid paying them what they’re owed”. The states involved are California, Michigan, and New York; lawyers targeted McDonald’s because it is an industry leader. The suit mentions a variety of labor violations, which could potentially affect 30,000 employees. The lawsuit seeks back pay and other damages for the affected parties. Read More