In The Media
National Media Revisit the Lasting Impact of Steven Scheck’s Burger King Franchise Case
Nation’s Restaurant News and QSR Magazine revisit Steven Alan Scheck, Scheck v. Burger King Corp., and a legal battle that challenged prevailing assumptions about encroachment, cannibalization and the balance of power between franchisors and franchisees.
More than three decades after Scheck v. Burger King Corp. drew attention to the rights of franchisees facing encroachment and cannibalization, the Burger King dispute and the franchisee behind it are receiving renewed interest from the restaurant and franchise industries.
Following the passing of Steven Alan Scheck at age 77, both Nation’s Restaurant News and QSR Magazine have revisited the case, its place in franchise law, and the story of the franchisee and young attorney who took on Burger King when others believed the case had little chance of succeeding.
Nation’s Restaurant News: A “Pioneering Legal Case”
On September 10, 2026, Nation’s Restaurant News published “Steven Scheck, franchisee behind pioneering legal case, dies,” by veteran restaurant industry journalist Jonathan Maze, Editor in Chief of Restaurant Business.
Maze reports that Scheck’s 1989 lawsuit against Burger King “helped solidify a franchise legal principle that exists to this day.” He recounts how Scheck challenged Burger King after another location opened approximately two miles from his Lee, Massachusetts restaurant, allegedly costing the franchisee approximately $300,000 annually in sales.
Although Scheck’s franchise agreement did not provide an exclusive territory, his attorney, Robert Zarco, argued that the absence of exclusivity did not necessarily give Burger King unlimited discretion to take actions that could substantially harm an existing franchisee. Central to the argument was the implied covenant of good faith and fair dealing.
Maze examines the resulting federal court decision and the legal leverage it provided franchisees, while also noting that aspects of the decision were later questioned by another court.
His article goes beyond the law to remember the man behind the case, including comments from Scheck’s daughter, Hayley Scheck Antonian, and from Zarco, who represented Scheck and remained his close friend for more than three decades.
QSR Magazine: “Remembering the Legacy of Steven Scheck”
Days later, QSR Magazine added another perspective with “Remembering the Legacy of Steven Scheck.”
The article looks back at Scheck’s battle with Burger King and the broader questions the dispute raised about franchise encroachment, cannibalization and the implied covenant of good faith and fair dealing.
QSR also explores the David versus Goliath dimension of the story: a franchisee whose business had suffered severe financial losses and a young attorney willing to pursue a case that several larger, established law firms had assessed as “worthless,” according to Zarco.
The case became formative for both men. Scheck chose to continue the litigation with Zarco when the young attorney established his own practice in 1992, and the experience helped shape a professional mission that would extend throughout Zarco’s career.
Read QSR Magazine’s “Remembering the Legacy of Steven Scheck.”
Additional Reach Through Yahoo Finance
The Nation’s Restaurant News story also received broader business and financial distribution through Yahoo Finance, introducing the Scheck story to an audience beyond the restaurant and franchise sectors.
The Yahoo Finance publication credits Jonathan Maze and directs readers to the original Nation’s Restaurant News article.
Read the Steven Scheck story on Yahoo Finance.
From “Landmark in the Making” to Renewed Recognition
The current coverage echoes the attention Scheck attracted while the litigation was still unfolding.
On December 1, 1992, the Miami Review published “Burger King Faces Franchise Fight,” with the sub-headline “Dispute over newer outlet could change industry practices.”
The Miami Review described Scheck v. Burger King Corp. as a “landmark in the making.”
More than three decades later, two major restaurant industry publications are looking back at the same dispute.
1992: The Miami Review recognizes a “landmark in the making.”
2026: Nation’s Restaurant News calls it a “pioneering legal case.”
2026: QSR Magazine examines “the legacy of Steven Scheck.”
Taken together, the coverage traces an unusual arc for a dispute that began with a single Burger King franchisee in Lee, Massachusetts. Scheck and Zarco challenged prevailing assumptions about what contractual discretion meant when the actions of a powerful franchisor threatened the economic viability of an existing franchisee.
Read our firm’s story about Miami Review’s original article.
From the News Pages to Legal Scholarship
The case also attracted academic attention soon after the federal court decisions.
In 1994, the University of Miami Law Review published an article devoted to the case, “Scheck v. Burger King Corp.: Why Burger King Cannot Have Its Own Way with Its Franchisees,” by Adam B. Leichtling, 48 U. Miami L. Rev. 671 (1994).
The article examined Scheck in the context of territorial rights and the implied covenant of good faith and fair dealing, providing contemporaneous scholarly analysis of the issues raised by the litigation.
Today, Scheck v. Burger King Corp. also has a dedicated Wikipedia entry documenting its factual background, procedural history, federal court decision and legal issues involving territorial rights and good faith and fair dealing.
Read the Wikipedia entry on Scheck v. Burger King Corp.
The Story Behind the Case
For Zarco Einhorn Salkowski, P.A., the story is deeply personal.
Scheck placed his confidence in Robert Zarco at a formative point in the young attorney’s career. When Zarco established his own law practice in 1992, Scheck chose to continue the litigation with him despite several larger, established law firms having assessed the case as “worthless,” according to Zarco.
Scheck believed in his cause. Zarco believed in the case.
What began as an attorney-client relationship forged through a landmark case ultimately became a friendship that lasted more than three decades.
The experience helped shape Zarco’s career and professional mission. The firm he founded, Zarco Einhorn Salkowski, P.A., is approaching its 35th anniversary and has since represented thousands of franchisees associated with more than 500 franchise systems across the United States and internationally.
The mission remains much the same as it was in Scheck: represent franchisees and underdogs, provide a “key to the courthouse,” and pursue justice “Against All Odds.”
That mission continues through the national franchise law practice at Zarco Einhorn Salkowski, P.A..
Read Zarco Einhorn Salkowski’s Firm News remembrance of Steven Alan Scheck.
For the complete history of Steven Scheck, the Burger King litigation, its place in franchise law, the academic scholarship surrounding the decision, and how Scheck’s fight helped shape Robert Zarco’s career and the firm he founded:
Read the complete story on our blog: “The Franchisee Who Believed. The Lawyer Who Wouldn’t Back Down. The Case That Helped Change Franchise Law.”
Robert F. Salkowski Featured in 1851 Franchise’s “2026 Top Franchise Lawyers You Should Know”
Partner Robert F. Salkowski has been featured by 1851 Franchise in its prestigious “2026 Top Franchise Lawyers You Should Know” series, recognizing attorneys who are helping shape the future of franchising through their leadership, experience, and impact on the franchise industry.
In the featured interview, Salkowski shares practical lessons and insights gained from decades of representing franchisees, franchisee associations, dealers, distributors, and business owners in complex franchise disputes, litigation, arbitration, and other high-stakes business conflicts throughout the United States.
Known for his strategic advocacy, practical business perspective, and deep understanding of franchisor/franchisee relationships, Salkowski discusses several important issues affecting today’s franchise industry, including:
Why advertising fund disputes often become larger issues of trust, transparency, and confidence in franchisor leadership.
Common compliance, operational, and documentation mistakes made by emerging franchisors.
The importance of ensuring franchisee profitability and operational readiness before pursuing aggressive expansion.
Risk management considerations when growing franchise systems and entering new markets.
His client-centered philosophy of understanding the economics, the documents, and the people behind every dispute.
The critical importance of transparency, candor, and confronting difficult facts early when evaluating franchise disputes.
Throughout the interview, Salkowski emphasizes that successful franchise systems are built on more than contracts alone. He explains that understanding unit-level economics, maintaining trust within the franchise system, and aligning franchisor and franchisee interests are often just as important as the legal provisions contained in franchise agreements.
The interview also highlights one of the most important lessons Salkowski has learned during his legal career: effective advocacy requires complete candor and a willingness to identify and address challenges before an adversary does. By understanding the business realities, financial pressures, and human factors underlying franchise disputes, attorneys can better position clients to achieve practical and successful outcomes.
As one of the firm’s leading franchise litigation attorneys, Salkowski continues to embody Zarco Einhorn Salkowski, P.A.’s longstanding commitment to leveling the playing field for franchisees and business owners nationwide facing challenges against larger, better-funded adversaries.
Congratulations to Robert F. Salkowski on this well-deserved recognition.
Read the full interview:
https://1851franchise.com/2026-top-franchise-lawyers-you-should-know-robert-f-salkowski-zarco-einhorn-salkowski-pa-2732117
Zarco Einhorn Salkowski Represents Franchisee in California Lawsuit Against Jack in the Box Alleging Millions in Damages
A newly filed lawsuit in California against franchisor Jack in the Box is drawing attention to allegations of excessive rent charges, store cannibalization, disputed royalty practices, and operational burdens that reportedly resulted in millions of dollars in damages for a Houston-based franchisee. The case raises broader questions about franchisee protections, transparency, and franchisor obligations within complex franchise systems.
The litigation also comes amid broader challenges and franchisee-related disputes involving the brand, underscoring growing scrutiny over franchisor-franchisee relationships across the quick-service restaurant industry.
Representing franchisee Gulf Coast Jacks in this high-profile matter is Zarco Einhorn Salkowski, P.A., alongside California-based Ghilezan Law Firm. Known as “The Great Equalizers,” Zarco Law continues to level the playing field nationwide for franchisees facing complex disputes against larger franchisor systems. The Zarco legal team includes Robert Zarco, Robert Salkowski, and Taylor Duncker.
Read more about the allegations and legal claims asserted in this developing litigation: https://www.restaurantbusinessonline.com/financing/franchisee-sues-jack-box-claiming-millions-damages
Zarco & Salkowski Help Shape McDonald’s Franchisee “Bill of Rights” for Fair Franchising
A significant moment in franchise law and franchisee advocacy is unfolding within the McDonald’s system.
As reported by Restaurant Business, the National Owners Association (NOA)—an independent organization representing McDonald’s franchisees—has formally approved a “Franchisee Bill of Rights,” a comprehensive set of 15 standards the group believes are essential to fair franchising and a healthy franchisor-franchisee relationship.
Founder and Managing Partner Robert Zarco and Partner Robert Salkowski played a central role in developing this landmark framework and serves as legal counsel to the NOA.
“These are standards that the NOA membership expects McDonald’s to follow regarding the business relationship between McDonald’s and its franchisees,” Zarco stated in the article.
A Defining Statement by Franchisees
The Franchisee Bill of Rights addresses core issues that franchisees nationwide have increasingly raised across multiple industries, including:
- The right to set prices without fear of reprisal
- The right to operate independently without intimidation or diminished support
- Fair and transparent dealings by the franchisor
- Reasonable capital requirements and consultation before major expenditures
- Market protection and freedom from harmful encroachment
- Competitive and flexible sourcing
- Due process and fair dispute resolution
- Renewal, transfer, and termination only for cause
- These principles reflect growing concern among franchisees that franchisors—particularly large, global brands—have expanded control in ways that materially affect franchisee profitability, autonomy, and long-term business value.
Why This Matters
McDonald’s is the world’s largest franchise system, and it is rare for franchisees within such a dominant brand to formally articulate and unify around a set of rights in this manner. The NOA’s action signals a broader industry conversation about balance, independence, and fairness in franchising.
Robert Zarco’s involvement underscores his decades-long mission to level the playing field between franchisees and powerful franchisors—an approach that has earned him national recognition as “The Great Equalizer” in franchise law.
A Broader Industry Impact
Franchisee “bills of rights” have long been promoted by advocacy organizations such as the American Association of Franchisees and Dealers (AAFD) and the Coalition of Franchisee Associations, but the adoption of such a framework by McDonald’s franchisees represents a meaningful escalation in franchisee self-advocacy.
As franchising continues to evolve, this development may influence not only McDonald’s, but franchise systems across industries evaluating how power, profitability, and partnership are shared.
Zarco Einhorn Salkowski, P.A. remains committed to protecting franchisees nationwide through strategic advocacy, litigation, and forward-thinking legal leadership.
When Franchisee Expectations Collide with Reality: Robert Zarco Advocates for Units Operators
Zarco Einhorn Salkowski, P.A. is representing a group of franchisees in litigation involving Units Moving and Portable Storage, a national portable storage brand. The matter highlights core principles that underpin franchise relationships: mutual reliance, transparency, and a shared objective of long-term, sustainable profitability.
The lawsuit, filed in South Carolina, involves 22 franchisee plaintiffs operating more than 30 locations across 19 states.
The franchisees allege that the franchisor:
- made false and misleading representations concerning purported proprietary systems and equipment,
- required purchases from designated vendors at excessive prices,
- implemented a flawed point-of-sale system, and
- improperly used franchisee advertising funds.
Founding and managing partner at Zarco Einhorn Salkowski and counsel for the franchisee plaintiffs, Robert Zarco, emphasized in a quote the expectations franchisees reasonably bring when investing in a franchise system:
“The reality is, when you are a member of a franchise system as a franchisee, you expect that the franchisor is going to act in a manner that’s going to help benefit you in your business venture, and hopefully increase your chances of being profitable — not increasing your chances of being a failure.”
The franchisor has denied the allegations and attributes franchisee challenges to macro-economic pressures affecting the industry, including increased costs and broader market conditions. The case remains in active litigation.
For more than 35 years, Zarco Einhorn Salkowski, P.A. has earned national recognition for representing franchisees and franchisee associations nationwide, advocating for accountability, fair dealing, and the protection of franchisee investments.
Zarco Law Represents National Independent Franchisee Association in Lawsuit Against Round Table Pizza Alleging Marketing Fund Mismanagement and Improper Financial Transfers
Zarco Einhorn Salkowski, P.A. is proud to announce that Founding and Managing Partner Robert Zarco and Partner Robert Salkowski have been retained by the Round Table Owners Association in a major lawsuit filed in Los Angeles Superior County Court against Round Table Pizza, owned by parent company Fat Brands.
The franchisee association alleges that Round Table Pizza engaged in the mismanagement of the chain’s national marketing fund following its 2021 acquisition—claims that include diversion of advertising dollars, refusal to allow independent audits, reclassification of marketing contributions to inflate vendor rebates, and substantial financial transfers to corporate affiliates. Operators argue these actions contributed to declining sales, weakened brand visibility, and the collapse of longstanding marketing programs.
As parent company Fat Brands confronts significant debt pressures and potential bankruptcy, Round Table franchisees are seeking accountability, transparency, and the restoration of proper fund governance to protect the brand and the system’s 385 franchise-owned locations.
Our law firm remains committed to defending the rights of franchisees nationwide and ensuring franchisors meet their legal and fiduciary obligations.
Read Full Story: https://www.restaurantbusinessonline.com/financing/franchisees-sue-fat-brands-owned-round-table-pizza-over-marketing
Round Table Pizza Franchisees Hire Zarco Law to Investigate Fat Brands’ Use of Marketing Funds After Months Without Advertising
A group of Round Table Pizza franchisees is investigating Fat Brands Inc. over the company’s handling of the chain’s marketing and vendor rebate funds, after a missed vendor payment left the brand without advertising for several months earlier this year.
The Round Table Owners Association (RTOA), which represents operators of the 400-unit West Coast-based pizza chain, has retained Founder and Managing Partner Robert Zarco and attorney Robert Salkowski of Zarco Einhorn Salkowski, P.A. as General Counsel to lead the probe into potential misuse of marketing funds and questionable financial transfers to Fat Brands, Round Table’s parent company.
Franchisees allege that Fat Brands failed to make payments to its advertising vendors, resulting in a complete halt of national television and Google search advertising between March and late summer. “Substantial concerns have arisen as to the misuse of advertising and marketing funds as a result of learning that a $14 million ad fund has been unable to timely pay marketing vendors’ invoices, causing a disruption in advertising placement for several months,” said Zarco.
As part of its investigation, the RTOA is also reviewing vendor rebate accounting practices, including funds owed under its PepsiCo contract, which franchisees claim haven’t been distributed since 2023. The association’s review will cover the 2022–2024 fiscal years, analyzing the flow and use of ad funds and related transfers.
Fat Brands, which acquired Round Table Pizza through its 2021 purchase of Global Franchise Group, has since faced mounting debt—$1.2 billion in long-term liabilities—and scrutiny over fund management across several of its restaurant brands.
Round Table’s same-store sales have declined for eight consecutive years, with operators reporting a 50% drop in profitability since 2017. Franchisees contend that marketing lapses and financial mismanagement have further strained store-level performance.
Zarco emphasized the importance of transparency and full accounting responsibility:
“Franchisees contribute to these marketing and rebate funds in good faith, expecting that every dollar is used to promote the brand and strengthen their businesses—not to service corporate debt, unrelated expenses,” or providing financial support to affiliates.
The investigation remains ongoing as franchisees seek accountability and restoration of proper fund management practices.
Read Full Story:
https://www.restaurantbusinessonline.com/financing/round-table-pizza-franchisees-investigate-fat-brands-use-marketing-funds-after-chain
October 6, 2025 | Restaurant Business | By Jonathan Maze
A Legacy of Excellence: Robert and Sabrina Zarco Featured in Father’s Day Tribute
What’s in a Name? Everything!
We are honored to share that The Daily Business Review (ALM’s Law.com) featured our Founder and Managing Partner Robert Zarco alongside his daughter Sabrina Zarco in their Father’s Day article, “Fathers Day Salute: Legal Legends Talk Love and Legacy,” written by Lisa Willis on June 13, 2025.
This special recognition celebrates high-profile attorneys who have children following in their footsteps as practicing lawyers. Robert Zarco, a nationally recognized commercial litigator and trial lawyer, was showcased with his daughter Sabrina, a talented commercial litigator with five years of experience at the prestigious Berger Singerman law firm.
We couldn’t be prouder of both Robert and Sabrina – not only for their individual professional accomplishments, but for the extraordinary father-daughter bond they share and the mutual respect that defines their relationship.
The ZARCO name was established on the legal map through Robert’s pioneering national work in franchise law, and now continues its legacy of excellence through Sabrina’s rising career in commercial litigation. As the article beautifully illustrates, some legacies are truly worth preserving.
Fathers Day Salute: Legal Legends Talk Love and Legacy
June 13, 2025 By Lisa Willis
What’s in a Name?
Sabrina Zarco’s dad is pretty famous in the commercial litigation space. Her father is trial lawyer, Robert Zarco. And on many occasions the connection makes people say; “I have to ask, are you Robert Zarco’s daughter? And of course, my answer is always yes with pride,” Sabrina says.
Her father, a Cuban immigrant turned nationally recognized litigator, is a founder of the largest franchisee practice in the world.
“Based on what people have told and what I’ve seen myself in tidbits—even though my dad says I haven’t seen him enough—he obviously loves what he does. He’s amazing at what he does. I wouldn’t have had any idea what it was like to actually be a lawyer without watching him and without seeing how prideful he is of his work, and how happy he is doing his work, and how excited he is about every time he has a new case. I think that definitely translates in my practice and me going to law school, being excited, always knowing that I wanted to do litigation, because in my mind, there was no other option.”
The Miami-Dade County, Florida father of three said he always dreamed that one would grow up to be a lawyer.
“It was important for me that a child of mine follow my legacy in terms of the practice of law, which I have become involved in, which is a very unique area… representation of franchisees in the franchise industry, Robert said. “One day when Sabrina came home and said, ‘Dad, I have decided that I’m going to follow in your footsteps and I’m going to become a commercial trial lawyer as well, it lightened up my eyes and brought such euphoria and warmth to my heart that I will never forget that day.”
Sabrina Zarco added a personal Father’s Day message to her dad who was on the interview call with her Friday.
It was a sentiment echoed by all the attorneys.
“I love you,” she said. “I appreciate everything that you’ve done for me and how much I have grown as a human by having your guidance and support and love throughout my life and through my career. And I know that it’s only going to get better and better from here on out.”
A Legacy of Excellence Continues
This recognition highlights not only the professional achievements of both Robert and Sabrina Zarco, but also the strong family bond that inspires excellence in the legal profession. The ZARCO name continues to represent dedication, integrity, and outstanding legal advocacy for generations to come.
Partner Mary Nikezic Attends Invitation-Only Future Investment Initiative (FII) Global Summits around the World, Including Recent Miami Conference’
Zarco Einhorn Salkowski, P.A. Partner Mary Nikezic, a talented complex commercial litigator and trial lawyer, maintains her active participation in the exclusive, invitation-only Future Investment Initiative (FII) summits worldwide, including the recent Miami Conference. These prestigious events welcome distinguished attendees and have rapidly become among the most influential global gatherings of business leaders, investors, and political figures, with some viewing FII as a rising counterpart to the World Economic Forum in Davos.
A Global Gathering of Industry Leaders and Policymakers:
A highlight of the 2025 FII Miami summit, for example, was a keynote address from President Donald Trump, which drew standing-room-only crowds of billionaires, royals, and global dealmakers. Notable figures included Elon Musk, Citadel CEO Ken Griffin, former Treasury Secretary Steve Mnuchin, former Google CEO Eric Schmidt, SoftBank founder Masayoshi Son, Uber CEO Dara Khosrowshahi, Vista Equity’s Robert Smith, Point72 founder Steve Cohen among many others.
Focus on U.S.-Middle East Economic Cooperation:
This year’s Miami summit placed a spotlight on the deepening economic and investment ties between the United States and Gulf nations. A particularly notable session featured Jared Kushner in conversation with Middle East Envoy Steve Witkoff, discussing ongoing regional developments, investment opportunities, and the shifting dynamics of diplomacy and business in the Middle East. Attendees noted Saudi Arabia’s growing role as an international hub and catalyst for strategic partnerships and negotiations.
Economic Impact and Strategic Significance:
The FII summits continue to demonstrate significant global economic influence. At the October 2024 Riyadh summit alone, more than $70 billion in deals were announced. With Crown Prince Mohammed bin Salman pledging to invest $600 billion in the U.S. during President Trump’s second term, many are viewing FII as a central platform for shaping future global business and policy initiatives.
Mary Nikezic’s Ongoing Global Engagement:
Mary Nikezic’s invitation and participation in FII events, such as the Miami Conference, reflects her active involvement with the FII initiative across multiple global locations. Having attended various FII conferences worldwide, she continues to engage with these high-profile international gatherings and is expected to participate in future FII events globally.
Our firm is proud of Mary and the high caliber of perspective she brings to our clients on a global scale. Her ongoing engagement with FII reflects both her global perspective and the law firm’s commitment to staying at the forefront of international business and investment trends, ensuring our clients benefit from world-class insights and connections.
Mary Nikezic’s BIO: https://www.zarcolaw.com/attorney/nikezic-mary/
NY Post Article on 2025 FII Miami: https://nypost.com/2025/02/21/business/trump-elevates-miamis-fii-its-a-hotter-ticket-than-davos/
More on FII: https://fii-institute.org/ Saudi Arabia’s Public Investment Fund (PIF): https://www.pif.gov.sa/en/
Partner Robert Einhorn Quoted in Major New York Times Investigative Article into Dickey’s Barbecue Questionable Franchise Sales Practices
Zarco Einhorn Salkowski, PA Co-Managing Partner Robert Einhorn was quoted in today’s comprehensive New York Times investigation into Dickey’s Barbecue Pit franchise practices. The article, “They Bet Their Future on Barbecue Dreams. Many Lost Everything,” features some of the cases that the Firm is handling against Dickey’s and sheds light on Dickey’s high franchise failure rates and questionable sales practices.
What the Investigation Revealed: The Times spoke with 37 current and former Dickey’s franchisees who reported being provided misleading financial information, leading to significant economic hardship. Many franchisees—including military veterans and immigrants pursuing the American dream—invested their life savings only to face unexpected costs that were often double the projections they received.
Our Firm’s Role: Robert Einhorn, along with Firm Partner Himanshu Patel, represents several Dickey’s franchisees referenced in the article including matters addressing Dickey’s conduct involving:
- Dickey’s misrepresentation of startup costs and revenue projections;
- Dickey’s breaches of franchise agreement terms; and,
- Dickey’s obstructive conduct in the legal proceedings filed against it.
Read the full New York Times Article: https://www.nytimes.com/2025/06/03/dining/dickeys-barbecue-pit-franchise.html
‘Living the Life on Miami’s Priciest Street’
When The Wall Street Journal comes knocking, you answer! Our Founding and Managing Partner, Robert Zarco, was recently featured in an article about Miami Beach, Florida’s North Bay Road, the most expensive four-mile stretch in Miami-Dade, where waterfront homes total over $1.7 billion in value. So yes, he’s officially close neighbors with some of the biggest names in the U.S.—though we’re still waiting on the block party invites!
Robert’s motto has always been ‘Live, Love, Learn, and Laugh,’ and let’s just say he’s living up to it—quite literally! His lavish Mediterranean home, sitting on a rare double lot with 200 feet on the open bay and directly facing Downtown Miami, caught the attention of the WSJ. While the article doesn’t delve into his inspiring journey from arriving in the U.S. as a Cuban immigrant to becoming a nationwide legal powerhouse, we know that hard work, determination, and a love of the finer things in life got him here.
Check out the online article for a peek inside one of Miami’s most exclusive addresses—no legal consultation required! Haaaaa😉
The Wall Street Journal: $1.7 Billion Worth of Homes on a 4-Mile Stretch: Welcome to Miami’s Riches Road
Franchisee Sues H&R Block for Wrongful Termination Over Software Complaints
Franchise Attorneys Robert M. Einhorn and Jacky Beda of the nationally recognized franchise law firm Zarco Einhorn Salkowski, P.A., are representing former franchisee Stephanie Thiel, owner of Colorado Tax Specialists Co., in a lawsuit in Kansas City federal court against H&R Block. The lawsuit alleges breach of contract, breach of the implied covenant of good faith and fair dealing, violation of the Missouri Franchise Act, and unjust enrichment.
Thiel claims that H&R Block wrongfully terminated her franchise agreement in retaliation for raising concerns about systemic software malfunctions that negatively impacted business operations and client service. Thiel further asserts that H&R Block failed to follow proper notification and termination procedures.
As reported in the Kansas City Business Journal by Staff Writer James Dornbrook – Feb 3, 2025.
Read Article by Subscription: https://www.bizjournals.com/kansascity/news/2025/02/03/hr-block-franchisee-lawsuit-software-termination.html
Dickey’s sales plunge, and franchisees pay the price
“Extreme and Unreasonable Demands” are Being Made of Franchisees at Dickey’s
Dickey’s Barbecue Pit, once a rapidly expanding franchise, has recently faced significant challenges, leading to numerous store closures and financial difficulties among its franchisees.
**Franchisee Challenges and Allegations**
Many franchisees have reported that the business model is unsustainable, citing excessive construction costs, stringent pricing restrictions, newly mandated fees, expensive subsidiary supplier requirements, and other financial burdens imposed by the franchisor.
Founder and Managing Partner Robert Zarco of Zarco Einhorn Salkowski, P.A., a prominent national advocate for franchisees and franchisee associations, represents Dickey’s independent franchisee association (Pit Owners Association) and several individual franchisees. Zarco stated, “Franchisees are losing their investments… The whole business model is simply not working.” He continued, “Some locations are viable… But very few. Seventy to 80% are shutting down.”
The situation at Dickey’s Barbecue Pit highlights the complexities and inherent risks within franchise operations, particularly when franchisees feel overburdened by the franchisor’s demands. The ongoing disputes and mounting financial difficulties underscore the urgent need for a reassessment of the current business model to ensure a more sustainable and mutually beneficial outcome for both the franchisor and its franchisees.
Read More: https://www.restaurantbusinessonline.com/financing/dickeys-sales-plunge-franchisees-pay-price
New York Post Article Highlights the Contrasts in Leadership Shifts at the Fast-Food Sandwich Franchises
‘Subway CEO to Retire Following $9.5 Billion Sale’
Subway CEO John Chidsey will retire in late December 2024 after navigating the sale of the 20,000-store franchise to Roark Capital. Despite the sale price, Subway’s per-store valuation trails behind its competitors, reflecting years of declining sales (down 5-10%) and controversial policies impacting franchisee profitability. Chidsey’s tenure included mandated $6.99 footlong promotions, costly store remodels, extended hours, and increased marketing fees—policies heavily criticized by franchisees.
‘Jersey Mike’s Secures $8 Billion Deal Amid Growth’
In contrast, Peter Cancro’s Jersey Mike’s sold to Blackstone for $8 billion, with its smaller 3,000-store footprint achieving a significantly higher per-store valuation. The chain’s steady expansion highlights its market strength and operational efficiency compared to Subway’s recent struggles.
‘Franchisee Concerns’
Attorney Robert Zarco of Zarco Einhorn Salkowski, P.A., General Counsel for the North American Association of Subway Franchisees (NAASF) which represents franchisee members with over 10,000 of the chain’s stores, told the NY Post that “If Subway keeps treating its franchisees the way it has over the last five years where it is ignoring their screams for help, Jersey Mike’s will have an easy task of gobbling up the Subway brand.”
Read More: https://nypost.com/2024/12/02/business/subway-risks-being-gobbled-up-by-this-fast-growing-rival/
London’s Daily Mail Weighs in on Founder and Managing Partner Robert Zarco’s Statement that Subway is at Risk of Being Acquired by Fast Growing Rival Jersey Mike’s
Founder and Managing Partner Robert Zarco of Zarco Einhorn Salkowski, P.A., General Counsel for the North American Association of Subway Franchisees (NAASF) which represents franchisee members with over 10,000 of the chain’s stores, told the NY Post as reported in London’s Daily Mail that “If Subway keeps treating its franchisees the way it has over the last five years where it is ignoring their screams for help, Jersey Mike’s will have an easy task of gobbling up the Subway brand.”
Subway CEO John Chidsey will retire late December after leading a $9.5 billion sale of the shrinking 20,000-store franchise to private equity firm Roark Capital in 2024, despite years of squeezing profits from franchisees during his 5-year tenure (approx. $475,000 per store).
Meanwhile, CEO Peter Cancro sold the expanding Jersey Mike’s chain with only 3,000 stores to the Blackstone private equity group for $8 billion (approx. $2.7 million per store).
Subway is clearly losing ground in the sandwich space with sales down 5-10% over a long series of mishaps, including commercially unviable mandated promotions like the $6.99 footlong, expensive store remodels with unproven returns on capital invested, extended store hours, expanded fees in technology and marketing on top of the high 8% royalty on revenues (not profits), etc.
Read More: https://www.dailymail.co.uk/galleries/article-14154179/Subway-risk-acquired-fast-growing-rival.html
‘The North American Association of Subway Franchisees (NAASF) Seeks Meeting with Franchisor to Discuss List of Concerns’
Earlier this year, Bill Mathis, the chairperson for the NAASF, hired Attorney Robert Zarco and Zarco Einhorn Salkowski, P.A. as General Counsel to represent its franchisee members which is said to represent 10,000 of the 20,000-plus Subway restaurants in North America over ongoing challenges at the world’s largest sandwich chain.
The North American Association of Subway Franchisees (NAASF) is seeking a meeting with Subway’s new owners, private equity firm Roark Capital, to address pressing concerns affecting franchisees. These concerns include:
- Discounting and Profitability: Promotions like the $6.99 footlong deal have squeezed profitability amid rising food and labor costs, even though traffic may have increased slightly.
- Costly Store Remodels: Franchisees are being asked to fund expensive remodels, ranging from $50k-$100k, without assurance that such expense will yield any return on their investment. Instances exist where franchisor has threatened franchisees losing their franchises if they refuse.
- Deli Slicers: Franchisees are required to install and operate deli slicers, which are costly and potentially dangerous, requiring extra labor and training to ensure safe usage.
- Extended Store Hours: New mandates require stores to operate up to 91 hours per week, adding more pressure to labor and costs on franchisees.
- Switch to Pepsi: Subway’s switch from Coke to Pepsi earlier this year has been controversial, with reports of franchisees being pressured into signing the new contract under the threat of franchise termination.
- Fresh Loc Lids: Franchisees are frustrated with the new stainless steel lids on sandwich units that block customer views of the meats, leading to confusion and questions like, “Why are you hiding the meats?”
Bill Mathis, the NAASF chairperson, and NAASF attorney Robert Zarco believe collaboration is possible and essential, while warning legal action remains an option if concerns are not addressed.
These issues reflect broader industry trends where private equity ownership prioritizes rapid revenue and financial gains to their investors over long-term franchisee profitability and mutually beneficial relationships.
Read Article by Joe Halpern at Franchise Times: https://www.franchisetimes.com/franchise_news/value-meals-killing-our-bottom-line-say-subway-operators-as-association-seeks-leadership-dialogue/article_a9f3061a-704f-11ef-8886-1b34b7caddeb.html
Subway Faces Franchisee Backlash Over Pepsi Beverage Switch
Subway is facing increasing opposition from its franchisees over a recent decision to switch its beverage contract from Coca-Cola to Pepsi. The move, announced in March, requires franchisees to sign a new agreement with PepsiCo. Otherwise, Subway has threatened to retaliate against franchisees, including possible termination of their franchise and/or discontinue distributing beverages to non-compliant operators beginning January 1 of 2025, if they refuse to sign the Pepsi Participation Agreement.
Some operators have expressed concerns about the terms of the Pepsi Participation Agreement, particularly regarding potential fees and the long 10-year duration of the contract. Additionally, there is growing tension between Subway and its franchisees over other issues, such as mandatory promotions that significantly impact profitability. Despite this, a substantial number of franchisees have signed the agreement to date.
Represented by Attorney Robert Zarco, The North American Association of Subway Franchisees (NAASF) has criticized Subway’s lack of transparency in sharing with franchisees the details of the entirety of their agreement, especially the Beverage Supply Agreement which supersedes the terms and provisions of the Pepsi Participation Agreement. Zarco believes that this conduct is “reprehensible and borderline illegal.” The dispute comes as Subway struggles to regain a slowdown in sales this year, amid rising costs and consumer concerns about value.
The new Pepsi contract adds yet another layer of complexity for operators trying to navigate a difficult market environment. Franchisees continue to push for more transparency and flexibility as they face mounting pressures from both the parent company and market conditions.
Referring Attorney Represented by Zarco Einhorn Salkowski, P.A., Prevails in High-Profile Attorney Fees Dispute
In a heavily contested referring attorney contingency fees dispute lasting five years, with an amount over four times greater than the original referral fee being sought by Lienor Attorney Ana Frexes of Frexes Law, Miami-Dade Circuit Judge Jose Rodriguez entered a judgment in favor of Lienor Frexes after a four-day trial.
Frexes was represented by Robert Zarco of Zarco Einhorn Salkowski, P.A. The judgment included joint and several liability against Podhurst Orseck, its client Plaintiff Andrea Virgin, and former Podhurst Orseck partner Michael Olin for the referral fee, attorney’s fees, pre-judgment interest, and costs, which cumulatively added up to an amount over five times the original charging lien.
Judge Rodriguez also ruled that Podhurst Orseck and Michael Olin prematurely and inappropriately distributed among themselves the referring fee amount, which was being held in trust and subject to a charging lien, before the court ever decided on the issue.
“The referring attorney [Frexes] was vindicated,” Zarco said in a statement. “And her persistence in pursuing true justice was recognized and rewarded by our legal system.”
Jason Giller, an uninvolved attorney fees expert, commented, “It looks like Judge Rodriguez got it right.”
Read the Article by Michael Mora by Subscription on DBR:
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Miami Judge Rules Podhurst Orseck, Ex-Partner Jointly Liable for 25% Referral Fee
Miami-Dade Circuit Judge Jose Rodriguez has ruled after a four-day bench trial that Podhurst Orseck, represented by Steven Rosenthal, and a former partner, Michael Olin, are jointly liable for a 25% referral fee plus attorneys’ fees and costs in an attorneys’ fee charging lien dispute stemming from a wrongful death case. Robert Zarco of Zarco Einhorn Salkowski, P.A. represented the Lienor, Attorney Ana Frexes, in achieving the favorable ruling in her case.
The case began in 2015 when Ana Frexes of Frexes Law referred her niece, Andrea Virgin, to Podhurst Orseck after Virgin’s husband died in a plane crash. Despite receiving a partial settlement in 2016 and acknowledging and paying Frexes on the referral fee agreement, Virgin later suddenly terminated Frexes’ services in 2019 shortly before the second defendant settled, leading to a legal dispute over whether the referral fee is still owed to Frexes, whether the attempted termination was lawful, and whether such fee was permitted to be allocated to Olin and not Frexes.
The Court further found that “it is undisputed that the Podhurst Firm, as well as Mr. Olin, had notice of Lienor’s charging lien at the time it received the remaining settlement proceeds and at the time that they each disbursed the funds to their respective bank accounts,” the opinion said. The Court determined, “[as] such, both the Podhurst Firm and Mr. Olin had an affirmative obligation to inform Lienor of the settlement and/or hold the disputed funds in escrow until the charging lien was fully adjudicated.”
Zarco, Braunstein, and Beda Win Appellate Order for Businessmen Against the City of Miami
Florida’s Third District Court of Appeal reversed a Miami-Dade Circuit Court Order and found that the City of Miami, Defendant, did not act in good faith.
Robert Zarco of Zarco Einhorn Salkowski, P.A., joined by law firm partner Michael Braunstein and Jacky Beda in representing the Plaintiffs, is quoted, “This is another huge piece of evidence that these businessmen (William Fuller and Martin Pinilla) from Little Havana have been abused and taken advantage of and mistreated by the City and some of its commissioners in the $63.5 million judgment.”
Zarco goes on to say, “The City has to act fairly when dealing with its residents and cannot draw a new line in the sand to accomplish illegal results for citizens who were properly complying with their requirements.”
Founder and Managing Partner Robert Zarco and Zarco Einhorn Salkowski, P.A. continue to be the “Heavy Hitters” acting as ‘Great Equalizers’ for Franchisees
Recently hired as General Counsel to represent the North American Association of Subway Franchisees (NAASF), Robert Zarco was quoted: “The mandatory discounting and the remodels are going to drastically cut into what’s left of their profits to the point that they will not be able to stay in business.”
The group of over 2500 NAASF Subway franchisees have great concern that the franchisor is implementing mandatory store upgrades and discounted food promotions that are causing “systemic issues” with the profitability of stores for Subway franchisees.
Zarco and his team of experienced Commercial Litigation Trial Attorneys have over 3 decades helping balance the power between franchisees and franchisors, like David vs. Goliath, by advocating nationally in the area of Franchise Law and leveling the playing field. To date, clients from over 500 franchise systems in about 40 states and 20 countries include franchisees and Franchisee Associations from McDonald’s, Bojangles, Burger King, Jack in the Box, 7-11, Sotheby’s, Re-Max, Harley Davidson, Marriott, Wyndham, IHG Hotels & Resorts, service industries, and so many more.
Read more about the latest representation for Subway franchisees:
The North American Association of SUBWAY Franchisees (NAASF) hires Robert Zarco and Zarco Einhorn Salkowski, P.A. as General Counsel
Zarco and the firm added Subway to its growing list of past and present prominent large groups of Franchisee Associations as clients such as the National Owners Association of many McDonald’s franchisees, Bojangles of America Franchisee Association, SFFA franchisee association of The Little Gym, Jack in the Box National Franchisee Association, Massage Envy Owners Association, Taco Time Franchise Association, and Edible Arrangements Franchisee Association, just to name a few.
“NAASF and the Zarco Einhorn Salkowski firm recognize that sustained profitability arises primarily from franchisees acting in a unified manner and working in close collaboration with the franchisor to resolve systemic issues without having to initially institute dispute resolution measures,” according to a joint press release of the NAASF of Subway and Robert Zarco. Zarco added, “We recognize the tremendous value NAASF provides to its membership and we are eager to aid NAASF in its admirable mission of supporting its talented membership in creating a mutually beneficial relationship with the franchisor.”
Reposting from the United Nations International Organization for Migration in honor of Partner Mary Nikezic’s interview in the news
“Interview with Ms. Mary Nikezić – Honoring Women Change-makers among the Montenegrin Diaspora
We’re thrilled to spotlight the incredible journey and advocacy of Ms. Mary Nikezić. From her early days championing social justice causes to her distinguished career as a successful attorney, her story is a testament to resilience, passion, and the unwavering belief in the power of gender equality.
Through her experiences navigating business and legal profession, Mary has witnessed firsthand the unique challenges faced by women, particularly migrant women, in achieving equality and safety.
Today, we honor her dedication to empowering women, mentoring young female lawyers, and advocating for policy reforms that create more inclusive environments for all.”
Franchisees sue Bojangles over marketing
The Bojangles of America Franchisee Association (BFA) is represented in a lawsuit by Zarco Einhorn Salkowski, P.A. over the franchisor’s administration of its Marketing Fund. “The sudden lack of transparency raised significant concerns regarding whether the marketing fund and the accrual account are being properly administered … or are being used as a mere ‘slush fund for the benefit of” Bojangles, the lawsuit says. Read more…
Robert Zarco’s inspiring life and his impactful role in shaping the franchise landscape in Zativa Life Magazine
Robert Zarco takes the spotlight on the cover page of the 2nd Issue of ‘Zativa Life’ Magazine, the ultimate guide to health and wellness! Dive into his extraordinary journey from humble beginnings as a Cuban immigrant at age 2 to creating a successful landscape business at age 7, and eventually becoming a national force in shaping franchise laws.
Teaming up with Zativa Life’s visionary Founder and CEO, Arturo Rodriguez, Zarco and his esteemed law firm, Zarco Einhorn Salkowski, P.A. (with over 30 years of franchise law and commercial litigation expertise), have been pivotal in guiding the Zativa Life franchise.They’re committed to fostering healthy relationships crucial for mutual success between franchisors and franchisees.
Zarco Einhorn Salkowski, P.A. Files Arbitration Claims for 35 Little Gym Franchisees with over 50 Locations…More are Likely to Come!
Over 50 Little Gym franchise locations have filed legal action against their franchisor and its private equity parent, Unleashed Brands, claiming that the company is imposing “damaging changes on the franchise businesses in violation of existing franchise agreements,” as reported in an article by Franchise Times.
Robert M. Einhorn, Co-Managing Partner at Zarco Einhorn Salkowski, P.A. is lead counsel for The Little Gym franchisee group.
California Legislature Increases Fast-Food Chains’ Labor Rates Without Proper Input From Franchisees
Truly independent franchisee representation was not specifically included in negotiations pertaining to the new regulations approved by the California Legislature that includes raising minimum wages for fast-food chain restaurant workers to $20/hr in 2024 and up to $29/hr in 2029.
The closed room discussions that led to compromises between a select group of franchisors, Service Employees International (Labor) Union, the National Restaurant Association (NRA) and the International Franchise Association (IFA) will have a major financial impact on the profitability of restaurants combined with the higher price consumers will pay for menu-products due to the expected increase in labor costs.
According to the Article by Jonathan Maze, the National Owners Association (NOA – comprised of over 1,000 McDonald’s Franchisees) says this new legislation “will result in a devastating financial blow to California McDonald’s franchisees,” estimated at approximately $250,000 in lost cashflow per store according to the NOA. The NOA is particularly concerned that the success of this legislation in California will lead to the proposal of similar measures in other states.
Franchisee Attorney Robert Zarco is quoted in the article saying, “This is a collective bargaining agreement where the required main employer (franchisee) is not present.” Furthermore, the negotiators and other franchisors are, in this regard, potentially acting like a “joint employer” by effectively negotiating and controlling the wage increase amounts for franchisees who ultimately bear those higher costs as independent contractors, but were denied a seat at the table.
The irony is that all fast-food franchisors will benefit from these higher prices since they are paid royalties and marketing fees (as well as rent in the case of McDonald’s) as a percentage of gross sales/revenues, irrespective of the reduced bottom-line profits to franchisees, says Zarco.
Franchisees of a popular fast-casual BBQ restaurant, Dickey’s, are facing challenges due to soaring costs and strict price restrictions being imposed by the Franchisor
Franchise Litigation Attorney Robert Zarco, hired by several franchisees, argue that “the business model is failing, putting franchisees in a financial environment that made it economically unviable” to remain in business due to price controls and other franchisor mandates undermining franchisees’ independence.
Some franchisees are in distress as the barbecue chain allegedly put certain operators’ store(s) for sale on the market without their knowledge! Typically, franchisees decide whether to sell a restaurant and set the asking price, but in this case, the franchisor listed an independent franchisee’s business for sale at an unreasonably low price without proper consultation or authorization. Franchisees, who are independent contractors, have the authority to decide if they want to sell their business and determine its selling price, given that they are owners of their businesses.
“Never in my 38-year legal career, representing franchisees (from over 500 different brands), have I ever heard or witnessed such unlawful and brazen conduct as the listing for sale of an independent franchisee’s business and at an unjustifiably low price established by the franchisor, without first consulting or receiving written authorization and permission from that franchisee,” said Robert Zarco.
After Clashing Over Marketing for Eons, Here’s How CMO’s and Franchisees Can Finally Get Aligned
“It won’t be easy, but experts have a few ideas on where to start.”
Renowned Franchise Litigation Attorney, Robert Zarco, dives deep into the clash of interests between Franchisors’ pursuit of Gross Revenues and Franchisees’ focus on Net Income.
ADWEEK, a go-to magazine for marketing pros, turns the spotlight on the tug-of-war between Franchisors’ Chief Marketing Officers’ strategies for growth and the real challenges faced by Franchisees in executing these directives, especially at a profit. In the throes of this post-COVID economy, this stands as a prime example of #Franchise Relationships under strain.
Experts weigh in on untangling this web with recommendations with hope for a smoother path ahead. Robert Zarco, the sole practicing Franchisee Attorney mentioned in the article’s spotlight, hits the nail on the head: “the franchisee is undertaking greater expense in delivering that promotional product to the consumer than the profit that that transaction would bring to the franchisee.” Zarco continues,
“Not only is headquarters not going to feel any pain—headquarters is going to feel a profit!”
Read more at the link below for insightful solutions from the frontlines of Franchise dynamics!
Landmark Victory: $5.2M Awarded in Noncompete Lawsuit as Zarco, Einhorn, and Nikezic Lead the Way
In a remarkable triumph for justice, Therapies 4 Kids (T4K) has emerged victorious with a decisive $5.2 million judgment in a groundbreaking noncompete lawsuit, spearheaded by commercial litigation veterans Robert Einhorn, Mary Nikezic, and Robert Zarco of Zarco Einhorn Salkowski, P.A. This pivotal victory underscores the flagrant misconduct of the defendants, signaling a resounding win for T4K.
In a resolute judgement, a Florida State Court ruled in favor of T4K, a valued client of Zarco Einhorn Salkowski, P.A., highlighting the egregious transgressions committed by the defendants. The court’s decision not only holds the defendants accountable for their deliberate defiance of noncompete and nondisclosure agreements but also exposes their fraudulent activities.
These unethical practices encompassed diverting patients, exploiting confidential information, and illicitly diverting insurance reimbursements to fuel their own competing venture. This duplicity unfolded even as they occupied well-compensated executive roles within the very company they were undermining.
Let this triumphant decision stand as a testament to the unswerving dedication to justice exhibited by the distinguished Zarco Einhorn Salkowski, P.A. Law Firm.
Legal Champions Secure $5.2M Victory in Landmark Noncompete Lawsuit: Partners Robert Einhorn, Mary Nikezic, and Robert Zarco Lead the Charge in Victory for Therapies 4 Kids
Celebrating a significant victory for justice! Therapies 4 Kids (T4K), a valued client of Zarco Einhorn Salkowski, P.A., won a substantial trial victory in a Florida State Court. The court awarded an impressive $5.2 million in damages, underscoring the “egregious” wrongful conduct by the defendants in a noncompete lawsuit.
The court found that the defendants, former employees of T4K, deliberately flouted noncompete and nondisclosure agreements and committed fraud. Their unethical actions included siphoning patients, sensitive data, and stealing insurance reimbursements to fuel their own rival enterprise, all the while they remained employed as well-compensated executives in the company.
Robert Einhorn aptly summed it up: “This case epitomizes a stunning betrayal by these defendants, who unabashedly pocketed substantial salaries while callously pilfering from T4K for years.”
Let this decision stand as another testament to the unwavering commitment to justice by the Zarco Einhorn Salkowski, P.A. Firm!
Firm Client Jersey Mike’s Sandwich Chain Claims it is the Target of Frivolous Lawsuits to Extract Quick Settlements
Firm Partner Robert Einhorn is Co-Counsel for Jersey Mike’s and quoted in an article titled “Jersey Mike’s Sues Arbitrator, Says It’s Facing Litigation” on Law.com New Jersey Law Journal by Charles Toutant.
The suit seeks to prevent Defendants from pursuing frivolous cases in CA relating to their alleged use of Jersey Mike’s website and to prevent the American Arbitration Association from administering such cases which are not properly subject to arbitration.
Jersey Mike’s asserts that the Defendants bringing the frivolous arbitration claims have “a long history of filing frivolous cases” that strategically demand settlement amounts for less than the large company’s legal cost to defend and litigate.
Attorney Robert Einhorn is quoted: “At some point, someone needs to stand up to these guys. Jersey Mike’s is a principled company, and they decided to stand up to these lawsuits”.
Robert Zarco and other Franchise Attorneys Weigh In as the FTC Closes its Comment Period about Franchise Agreements and Franchisor Business Practices
The Federal Trade Commission (FTC) was seemingly very interested in hearing “how franchisors exert control over franchisees and their workers” and “how franchisors disclose certain aspects and contractual terms of the franchise relationship.” There are varying opinions from the franchise attorneys on what the FTC will ultimately do with these comments…and when.
“Not all are convinced the FTC will use the comments to take action, though. Robert Zarco, Founder and Managing Partner at Zarco Einhorn Salkowski with 36 years of experience in franchisee representation, is doubtful rule-making will happen anytime soon.”
“There’s not going to be any rule or law that is changed as a result of this,” Zarco said. “That takes a long time to do, and I don’t think it will be done before the end of this presidential term. A big concern is a franchisor imposing a substantial number of new initiatives and requirements that are costing the franchisees more money that was being disclosed in the FDD,” Zarco said. “These initiatives and fees that are being imposed are typically at such levels that they are commercially unreasonable. Meaning a franchisee isn’t going to be able to obtain a reasonable return on investment from that financial contribution.”
California Bill Would Make Fast Food Corporations Liable for Labor Violations
“Robert Zarco, a Florida-based franchise lawyer, said he opposes the bill (AB1228) to make the corporate owners liable, but does not believe it would end the franchise business model if it passes. It would “make no business sense” for the global brands to buy back their franchised stores, he said. Over the past seven years, private equity companies have increasingly invested in fast-food chains, according to Zarco. “Those private equity funds are coming in in order to continue to promote the franchising business model because there’s a lot of money coming in,” he said. Buying stores back “would cost a fortune and shrink growth.”
Crains Chicago Business published an article further discussing the tensions between McDonald’s and many of its franchisees
“The NOA (an independent franchisee group made up of about half of McD’s 2,000 franchisees) has given some franchisees the courage to push back on McDonald’s in ways they haven’t before, said Robert Zarco, a franchise lawyer the group hired as counsel earlier this year.”
“In the past, they were very concerned about retaliation, intimidation and threats,” said Zarco, speaking on behalf of NOA. “Now, because there is strength in unity, they feel more protected by each other.”
Read the full article: McDonald’s franchisees’ unprecedented push for more power
Attorney Robert Zarco on the front page of The New York Times Business Advocating for Franchisees
Robert Zarco is again leading the way for franchisees, including his client the NOA comprised of over 1,000 McDonald’s franchisees, in matters that affect owner/operators’ ability to operate as independent contractors as set forth in the franchise relationship. The current economic climate has accelerated the challenges facing franchisees who are being requested to operate under highly imposing controls from franchisors who are increasingly focused on maximizing investor returns at the expense of individual franchisee profitability.
The Federal Trade Commission is stepping in now to scrutinize the current practices involving the franchisor/franchisee relationship, and has requested comments from the franchisee community as to experiences they are having with their franchisor.
Read the full article: Franchisers, Facing Challenges to Business Model, Punch Back
Robert Zarco is quoted on the front page of the Wall Street Journal
Robert Zarco is quoted on the front page of The Wall Street Journal Business & Finance section in his capacity as Attorney for the NOA, an association of over 1,000 McDonald’s franchisees. Recognized nationally as the pre-eminent leader in advocating for fair franchising laws, Zarco and his firm, Zarco Einhorn Salkowski, P.A., once again stands at the forefront of franchisees’ attempt to level the playing field in the franchisor/franchisee relationship.
National Owners Association (NOA), who represents more than 1,000 of burger giant McDonald’s franchisees, hires high-powered attorney, Robert Zarco
Publication: Restaurant Business
The current economic climate has generally set the stage for major struggles in the relationship between franchisors and franchisees. According to Restaurant Business Online’s Jonathan Maze, the Federal Trade Commission (FTC) is requesting feedback on franchisor business practices and the control they exert over franchisees and their employees, potentially setting the stage for changes in franchise regulations.
Founder and Managing Partner Robert Zarco and his team of attorneys have been advocating for decades to level the playing field for franchisees in contracts and litigation. Post COVID, with inflationary pressures, supply chain shortages, and increasing labor rates, the business disputes between the two sides have dramatically increased. Furthermore, the entry of Private Equity and M&A into the franchise space has dramatically added to the changes and dissatisfaction that is giving rise to threats of litigation among many franchise systems.
Read the full article – McDonald’s franchisees may take their complaints to the FTC
Attorneys Einhorn and Phang Represent Group of Franchisees from Amazing Lash Studio
Attorneys Robert Einhorn represent a group of Amazing Lash Studio franchisee clients with respect to various grievances the franchisees have against their Franchisor relating to supply chain price gouging and the lack of marketing and support. The Franchisor, Amazing Lash Studio is a division of WellBiz Brands owned by KSL Capital Partners.
Franchise Times provides further details in the attached article written by Beth Ewen.
The Federal Trade Commission (FTC) proposes to limit the use of Non-Compete Agreements
Publication: Haute Lawyer
Founder and Managing Partner Robert Zarco weighs in on why and how it affects employers and employees, as well as franchisors and franchisees. The FTC is attempting to bring more balance to these relationships and promote competition which is ultimately good for consumers. Click Here To Read Robert Zarco Explains the Non-Compete Law and the Proposal by the FTC to Limit its Use
Robert Zarco Gives Back and Hosts Embrace Girls Foundation Members for Lunch
Inspiring Article and Video in Haute Living Magazine about Giving Back when Robert Zarco hosted The Embrace Girls Foundation, Inc. for lunch at his home.
Learn more about the power of investing in our future youth to inspire great leaders at www.embracegirlpower.org.
The Case That Launched Commercial Trial Lawyer Robert Zarco As The Legal Franchise King, Setting Legal Precedent Under The Implied Covenant Of Good Faith And Fair Dealing And Leveling The Playing Field Between Franchisees And Franchisors
Publication: The Miami Review
Fast forward 30+ years and Attorney Robert Zarco and the law firm he founded has represented franchisees from over 500 franchise systems in 44 states and 23 countries in franchise litigation leveling the balance of power and advancing the practice area of franchise law nationwide and internationally. Zarco and his team at Zarco Einhorn Salkowski, P.A. continue to lead and defend the rights of franchisees, franchisee associations, multi-unit franchisees and more.
‘Burger King Faces Franchise Fight’
Dispute over newer outlet could change industry practices
By Robert Kuntz, Miami Review, Tuesday, December 1, 1992, Vol.67 No.122
Miami Review, The Daily Newspaper Of Business, Real Estate And Law, Vol. 67, No. 122, Tuesday, December 1, 1992
The owner of a Burger King franchise, who already is suing the Dade-based chain for allowing another restaurant to be built near his, now claims that corporate managers knew all along that he would be ruined, but lied about their intentions.
Steven A. Scheck, the owner of a Lee, Mass., Burger King, is asking a Miami judge to allow him to add allegations of fraud to his suit. If Scheck is successful at trial, franchise holders of all kinds may have new leverage to challenge the actions of their franchisors.
This case—viewed as a landmark-in-the-making—was brought by Scheck in 1989. He claims Burger King ruined his business by allowing another outlet to open two miles away.
The new restaurant—built on the leg of the Massachusetts Turnpike that had brought Scheck many of his customers—cost Scheck $300,000 a year in sales, says his Miami lawyer, Robert Zarco.
Scheck originally alleged only breach of contract and breach of an implied covenant of good faith, saying Burger King wronged him by opening the second restaurant knowing it would “cannibalize” his business.
In the past, such suits involving the proximity of fast-food outlet typically have been dismissed short of trial. Franchise contracts used by Burger King and other fast-food companies make it clear that franchisees have no exclusive right to a territory. That clause has been interpreted by most judges to mean the franchisors could build or authorize construction of new restaurants as and where they pleased.
But in July, U.S. District Judge William M. Hoeveler denied Burger King’s request to throw out Scheck’s suit. Although he dismissed Scheck’s allegation of a breach of an implied noncompete covenant, Hoeveler let stand the claim that Burger King breached an implied covenant of good faith and fair dealing. He took the unusual stance that a jury should be allowed to decide the case.
“This court will not blindly adopt the reasoning or analysis adopted by other courts—merely because the implied covenant of good faith and fair dealing involves an intricate and amorphous legal construct,” Hoeveler wrote in a footnote to his decision. He added that he declined to “jump on the precedential bandwagon.”
Hoeveler ruled that, “while Scheck is not entitled to an exclusive territory, he is entitled to expect that Burger King will not act to destroy the right of the franchisee to enjoy the fruits of the contract.” A Miami franchise lawyer calls the case a “landmark.”
“I think it is a very significant case for many reasons,” says Ronald Fieldstone of Fieldstone and Lester in Miami. “In fact, franchise attorneys consider this to be a landmark case in that it will for the first time clarify franchisors’ duty to exercise good faith in opening company stores and other franchises.”
Fieldstone—who is not involved in the case—says that in even those cases where contracts do provide some protected area, that area typically hasn’t been large enough to protect the franchisee’s business.
“That’s why this is a major case,” Fieldstone says. “If Scheck wins, this adds judicial clarification to the implied duty of good faith.”
The trial was set to begin Dec. 7, but may be delayed if Hoeveler allows Scheck to amend his complaint to add the fraud count. Scheck contends that not only did Burger King open a restaurant that ruined Scheck’s business, but the corporation lied to Scheck about its plans for the new restaurant.
Burger King has asked Hoeveler to deny the request to amend the complaint. The corporation says the fraud allegations are baseless and not timely filed. Michael Evans, Burger King spokesman would say only that “We deny the allegations and we intend to pursue a vigorous defense of our position.”
The Hojo
Court documents show that as early as 1983, Scheck knew that Burger King wanted to convert a Howard Johnson restaurant on the Massachusetts Turnpike into a Burger King. Scheck “strenuously objected,” arguing that another Burger King so close by would hurt his business.
In summer 1985, Marriott Corp. announced that it planned to buy the Howard Johnson. That was good news for Scheck, because he believed the acquisition would put an end to plans for converting the site into a Burger King. Burger King has a policy that prohibits any franchise owner from owning a “same or similar” restaurant of another chain. Since Marriott owns Roy Rogers and Big Boy restaurants, Scheck concluded, Burger King would never allow Marriott to turn the site into a Burger King.
“Not only did Scheck believe that, he was told that repeatedly by Burger King officials,” Zarco says. “He was told there was no way Marriott would be allowed to convert that to a Burger King.”
In fall 1985, Scheck, who have been renting his restaurant from Burger King, agreed to buy the property outright. Scheck concluded the $691,000 deal, Zarco says only after he got additional assurances from Burger King that the turnpike site would not converted. In spring 1986, Scheck spent another $190,000 remodeling his restaurant.
Then, in fall 1986, the turnpike site was approved as a Marriott-owned Burger King.
Zarco says Scheck was told that decision wasn’t made until nearly a year after Scheck bought his site. But once Scheck sued—and Burger King had to turn over hundreds of documents as part of the court-ordered discovery process—Scheck came to believe the conversion had always been planned and he’d been lied to.
“Scheck could not have, and in fact, did not discover the fraud until this lawsuit was initiated,” Zarco wrote in court papers. “Prior to the filing of this lawsuit, Scheck was completely unaware that the Lee turnpike site had always been slated for conversion and was unaffected by Marriott’s acquisition of the [Howard Johnson]. Scheck had always assumed, as he was told that [Burger King] had put the Lee turnpike on hold and only after a year had passed since he purchase the property did [Burger King] change its mind and allow the site conversion to continue.”
The Usual Deal
If Hoeveler allows the fraud allegation to be added to the complaint, the trial likely will be delayed a month or two to allow Burger King to prepare a defense. Scheck originally was seeking about $2 million in compensatory damages. But if the fraud allegation is allowed, that will open the door to punitive damages “in the millions,” Zarco says.
Beyond any damages Scheck may recover, Zarco says a victory for his client will send repercussions throughout the fast-food industry, substantially changing the relationship between franchisors such as Burger King and their thousands of franchisees. Fieldstone agrees, saying a Scheck victory would “shake up” the industry.
What will change, the lawyers say, is the franchisor’s ability to open new stores anywhere and any time they choose, virtually without regard to the effect on existing stores.
“I think the problem has to do with how the franchisors make their money,” Zarco says. “They don’t make money based on the profitability of each location, but based on gross sales and percentage rent. The fact is, McDonald’s and Burger King are in the real estate business, not the hamburger business.”
Barry Ziegler, a restaurant industry analyst for A.G. Edwards & Sons, says, “There’s no truth to that view.”
If Scheck prevails at trial, Zarco says, “in a post-Scheck era, franchisors are going to have to tread much more lightly before they encroach on an existing franchise.”
And Ziegler says that could ultimately be good for Burger King. More heavily franchised than other fast-food chains, the company doesn’t do itself any good by angering its franchisees, he says. Franchisees enable a company to expand quickly and open new stores. So if the parent companies are forced to look more carefully at encroachment, he says, it may be those parent companies that ultimately benefit.
“If you put in a store that hurt the profitability of another franchisee, that’s bad for the company,” Ziegler says. “Even though on paper it might look like they don’t suffer, or even make more, the parent company can’t afford to have bad relationships with its franchisees.”
Attorneys Salkowski and Braunstein Score a Win Covered by Law360
In an Article Titled, “Hologram Co. Investor Penalized For ‘Harassment’ Filings” Excerpts taken from Law360 (September 16, 2022) Written by David Minsky
“A Florida federal judge ordered a Jacksonville man and his attorney to pay more than $135,000 in sanctions for filing “harassment” briefs and continuing to pursue a securities fraud lawsuit against Michael Jackson hologram creator Pulse Evolution Corp. even after it was dismissed.”
“These motions, devoid of any legal or factual support, were frivolous,” said U.S. Magistrate Judge Monte C. Richardson, who also cited Scott Meide for his “tone and manner”. The attorney fees were requested by attorney Laura Anthony and her husband, Michael, a broker, who were accused of facilitating fraud and listed as defendants in Meide’s suit against Pulse, although a judge dismissed the case against them.
Laura and Michael Anthony are represented by Michael D. Braunstein and Robert F. Salkowski of Zarco Einhorn Salkowski, PA. Mr. Braunstein said, Meide continued with the case in an effort to “inflict pain and make it more complicated and difficult.”
Spotlight on National Franchise Law and Commercial Litigation Attorney Robert Zarco
Spotlight on National Franchise Law and Commercial Litigation Attorney Robert Zarco…the Man, Career, Lessons, and Accomplishments is featured in Haute Lawyer by Haute Living.
Epic Gala Event Celebrating the National Franchise Law Firm’s 30 th Anniversary
Miami-Dade Mayor Daniella Levine Cava proclaimed February 26, 2022 as Zarco, Einhorn, Salkowski, P.A. Day!
Nearly 500 distinguished guests, including prominent clients and colleagues, friends and family from all over the country and locally, feasted their eyes with tropical beauty, entertained by an 8-piece live band and DJ, an exquisite variety of delicious food, as well as numerous and extraordinary interactive entertainers cascading upon the beautiful outdoor garden venue on the bay throughout the evening.
The celebration, hosted at the residence of the law firm’s Founder and Managing Partner Robert Zarco, was themed “Tropicana in Havana” after the Latin roots of its founder and the people who have largely influenced Miami in the flavor of its music, food, and ambiance. The evening felt like a crescendo of excitement to feed all the senses, including dancers, models, musicians, and even a water show in the bay. It could arguably be deemed the ‘Party of the Year’!
‘That Annoys Judges’: How a Miami Lawyer Clinched a $168,000 Attorney-Fee Award
Partner Robert Einhorn lands on the front page of the Daily Business Review in the Miami print edition, winning a years-long battle in Federal Court over a franchise law case for a client, and obtaining a six figure attorney fee award. Einhorn attributes the sizable fee award to the firm’s customary practice of fair and reasonable billing without over-reaching. Congratulations! Read the article here.
Robert Zarco Weighs in on Flores’ NFL Lawsuit. Making Case in Court May Be Tough, Experts Say
Publication: Miami Herald
Founder and Managing Partner Robert Zarco weighs in, when asked by the mediaNFL controversy over potential senior level employment racial discrimination allegations and possible litigation involving the Miami Dolphins and others in the NFL over hiring practices. Read the article here.
Haute Media Group Co-Founder Seth Semilof Interviews Robert Zarco
Publication: Haute Lawyer by Haute Living
Haute Lawyer Network’s webinar series selects Attorney Robert Zarco to discuss the life that led him to become a nationally renowned force in all areas of Franchise Law, Commercial Litigation, and complex business disputes resolution. Watch the webinar here.
Zarco Speaks On Franchise Law And Unfair Trade Practices
Publication: Haute Living and Haute Lawyer
Founder and Managing Partner Robert Zarco discussed crucial advice for franchise owners with Haute Lawyer by Haute Living’s ‘Attorney Talk’. This two-part interview with Keith Miller, Director of Public Affairs for the American Association of Franchisees and Dealers (AAFD) focussed on francise law and unfair trade practices between franchisor and franchisee.
Part one and part two of the interview can be found on Haute Living.
Haute Living Launches Haute Leaders Dinner Series At Uchi Miami
Publication: Haute Living and Haute Lawyer
Haute Lawyer Robert Zarco was the featured Speaker in the 1st inaugural Haute Living leaders dinner series. Haute Mediap Senior VP, April Donelson, described Zarco’s impassioned and inspiring speech as an absolute highlight, and thanked him for his long tenure, deep ties and commitment to the Haute Living luxury brand.
Firm Founder and Managing Partner Robert Zarco was interviewed by Haute Lawyer on how the 2020 pandemic impacted professional lives at the firm and how they adapted.
Publication: Haute Living and Haute Lawyer
Zarco, Einhorn, Salkowski are blessed to have built luxury office space in 2018 that is vastly spacious and physically distanced for the safety and comfort of our staff and clients. It uniquely allows us to work collaboratively while social distancing at a time when our clients are counting on our service more than ever in this challenging environment. We are deeply saddened by the terrible suffering and loss COVID-19 has caused so many people and businesses in such a sudden, dramatic, and unforeseen manner, including many of our clients in the restaurant, hotel, and hospitality business. Founder and Managing Partner Robert Zarco stands proud that the firm has been able to provide continuous support for our valued clients, and our team in a way that maintained full employment and full pay throughout the pandemic for all of our personnel in 2020, including adding additional lawyers and staff. We are optimistic that the vaccines being rolled out will moderate the spread of COVID and allow us to return to some normalcy soon in the New Year in our personal and professional lives.
The Franchise Relationship That Powers Small Business Is Fraying
Publication: The Wall Street Journal
The Wall Street Journal featured a front page story on Franchises and the increasingly fraying relationship between franchisors and franchisees. Attorney Robert Zarco was quoted regarding client Edible Arrangements Franchisee Association, also interviewed and represented by Zarco Law Attorneys Robert Salkowski and Colby Conforti. Our team is proud to stand by the best business interests of our franchisees and franchisee associations clients for over 30 years from over 500 brands and counting.
National Franchisee Association Settles 2 year Lawsuit with Franchisor Jack in the Box (JIB)
Publication: The San Diego Union Tribune
Zarco Law Senior Franchisee Attorneys Robert Zarco and Robert Salkowski, lead counsel representing the National JIB Franchisee Association, an independent franchisee association that represents over 75% of the nearly 2,200 franchisees in the Jack In The Box System, agreed to a mutually beneficial undisclosed settlement with the franchisor that provides cooperation, inclusion, and transparency on promoting and growing the brand, including decisions on marketing expenditures and providing important financial disclosures to franchisees.
Franchises have become an attractive acquisition for private equity firms, with the ultimate goal of maximizing profits and minimizing expenses. Consequently, a great deal of the burden is being borne by franchisees by compromising their operations, reach to potential customers, and deliveries to clients. The large national franchisee group leveraged the power of their association to prompt the hiring of a new CEO who ultimately helped bridge the divide between the parties for the sake of the future success of the brand, the company, and all its stakeholders.
Jack in the Box and its Franchise Association Reach Settlement
Publication: QSR
Jack in the Box National Franchisee Association (NFA) and Jack in the Box, Inc (Franchisor) have reached an undisclosed settlement that aligns the interests of both the Franchisor and its several thousand Franchisees after a nearly 2 year dispute, with professional counsel including Zarco Law Attorneys Robert Zarco and Rob Salkowski. The mutually beneficial agreement aligns the interests of both parties and promises to increase communication, cooperation, and transparency moving forward.
Congratulations!
Jack in the Box Settles its Dispute with Franchisees
Publication: Restaurant Business
National Jack in the Box Franchisee Association representing over 2100 franchisees, led in large part by Zarco Law Founder and Managing Partner Robert Zarco and Senior Partner Robert Salkowski, settles a mutually agreeable 2 year lawsuit against franchisor Jack in the Box, Inc. New JIB CEO Darin Harris played an essential role by agreeing that transparency, communication, and cooperation going forward between the franchisor and franchisees are essential for the restaurant’s brand and operational success. Congratulations!
Webinar: The ‘Franchise King’ Attorney Robert Zarco discusses Franchise Law and the Franchise Business in light of COVID-19
Publication: Haute Living and Haute Lawyer
Nationally recognized Franchise Law Attorney, Robert Zarco as some call the ‘Franchise King’, shares his insights on how Franchises are Weathering and Navigating the 2020 Business and Legal Climate from COVID-19.
Zarco reviews his current experience regarding the main concerns for franchises, including the kinds of disputes and litigation, what factors are cause some to thrive while others suffer or fail, any legal precedents that may be ripe to be set, what protections are needed now more than ever and where the franchise model may go from here.
PODCAST: Examining the Battle over Business Interruption Insurance Coverage
Publication: Long Live Lodging and Lodging Leaders
“As the hospitality industry struggles to mitigate the massive loss of revenue caused by the coronavirus pandemic, hundreds of hotel owners are filing lawsuits to force their property insurance providers to cover their financial casualties”, as examined in this informative podcast by Lodging Leaders in LongLiveLodging.com.
The very contentious issue of business interruption insurance affecting hotels, restaurants, retailers and so many more is estimated to cost Insurers, if forced to pay claims, anywhere from a minimum of $255 billion according to the American Property Casualty Insurance Association to as much as over $600 billion as reported by Best’s Insurance. Lawmakers in both the State and Federal governments are considering legislation to intervene and help mitigate the catastrophic economic damage and sustainability to all sides from COVID-19 and the ensuing government shutdowns. The battles center around potentially unprecedented legal arguments where the insurance industry claims “the amounts are not sustainable and would ultimately make many insurers insolvent”, and hotel owners argue “they’ve paid premiums for years to cover high-loss scenarios such as the one they’re facing now”.
This podcast features Attorney Robert Zarco of Zarco Law; Sanjay Patel, CEO of MHG Hotels; Gregory Riehle, hospitality consultant and lawyer; and Dr. Robert Hartwig at the Center for Risk and Uncertainty Management at the University of South Carolina co-authored a white paper about the un-insurability of businesses affected by viral pandemics.
Inspirational Interview with Game-Changing Attorney Robert Zarco
Haute Living Magazine and Haute Lawyer hosted a comprehensive and informative interview of nationally acclaimed Commercial Litigation and Franchise Law Attorney Robert Zarco on a variety of topics. ZARCO discusses growing up poor from a hard-working Cuban immigrant family, the importance of education, building and holding on to the principles of the American Dream, navigating business life during and after the coronavirus and government shutdowns, and so much more. Please read and watch this inspirational video.
Haute Living and Haute Lawyer Article: Watch Inspirational Interview with Game-Changing Attorney Robert Zarco
Hotel owners press insurance firms to pay business-interruption claims
“Not all business-interruption policies are created equal,” said Attorney Robert Zarco, and whether or not there is insurance policy coverage “isn’t always clear cut”. “After SARS, many insurers included pandemic exclusions. However, not all policies or exclusions are drafted the same, and there are exceptions to the exclusions.” What’s more is that Insurance companies are denying claims even when there are All-Risk policies with no exclusions whatsoever related to viruses or pandemics.
Travel Weekly Article: Hotel owners press insurance firms to pay business-interruption claims
Litigation Builds Against Insurers Over Coronavirus Business Interruption
The heat is getting super hot in the kitchen of the insurance and legal world over the financial fallout to businesses from the government shutdowns to slow the spread of the coronavirus!
Is the cure worse than the disease? Time will tell…in the meantime, we wait while everyone is quickly taking sides and building their arguments. This could mean life or death in business and in health…the stakes are very high, and governments (taxpayers) are caught in the middle!
Insurance Journal Article: Litigation Builds Against Insurers Over Coronavirus Business Interruption
How to Fight Denials of Business Interruption Claims
Franchise Times article reports again on the mounting fight by businesses and their lawyers against Insurance Companies (and Government) to gain financial support for unprecedented sudden catastrophic losses of income due to business shutdowns from the Corona Virus (COVID-19) pandemic.
Well-known attorney, Robert Zarco, who sues franchisors nationwide in high-profile lawsuits on behalf of franchisees, is now ”taking the bull by the horns” targeting insurance carriers who are denying claims “at a time when (businesses) need it most” after paying hefty Insurance premiums for years!
As is usually typical with many qualifying cases involving legal disputes at Zarco Law, businesses may be represented, to help fight insurers’ denials after reviewing the specific details around the case, on a percentage contingency basis of any amounts gained, meaning clients don’t pay unless he wins, plus a “small upfront fee’ and other costs incurred.
Most of the clients Zarco, Einhorn, Salkowski is representing are multi-unit operators for businesses such as hotels, restaurants, and auto dealerships that are losing hundreds of thousands of dollars. More information can be found on our website, including how to contact the firm for a free initial consultation.
https://www.franchisetimes.com/news/April-2020/How-to-Fight-Denials-of-Business-Interruption-Claims/
Monthly Loss of $431 Billion Spurs Insurance Claims Across U.S
‘Nearly Half a Billion Dollars monthly in Business Loss of Income from Corona Virus and Ensuing Government Shutdowns is Spurring Insurance Claims’
“Even Carefully crafted policies may not be enough to protect the insurers, says Robert Zarco, a Miami-based lawyer who represents thousands of McDonald’s, Burger King and Hilton hotel franchisees gearing up to file business-interruption suits.”
Bloomberg Article: Monthly Loss of $431 Billion Spurs Insurance Claims Across U.S.
Washington Post Article: Monthly Loss of $431 Billion Spurs Insurance Claims Across U.S.
Zarco Law suing Edible Arrangements (EA) franchisor on behalf of the EA association of franchisees
Edible Arrangements (EA) franchisee association is suing the EA franchisor and CEO Tariq Farid over a long list of alleged grievances including “self-dealing”, alleged improper use of advertising funds for operations, and “unreasonable cost increases”. Attorneys Robert Zarco, Robert Salkowski and Colby Conforti are seeking remedies to protect the economic viability of the EA franchisees, including “compensation for business losses as well as a change in the business model”.
The EA Franchisee Association President claims that stores are closing due to a variety of unreasonable operational practices and costs that essentially compensates the franchisor approximately 20% off the top in royalties, advertising, and other fees and requirements, to the detriment of the franchisees.
The EA Franchisor is now allegedly retaliating against the Franchisee Association board members for the lawsuit by blocking them from participating in town hall phone calls giving vital information on navigating the COVID-19 crisis.
The law firm of Zarco, Einhorn, Salkowski, P.A. has over 30 years of experience in protecting the commercial legal interests of small and mid-sized businesses and franchisees against their larger counterparts. Most recently, the firm is seeking to attempt recovery for clients for loss of income due to Business Interruption arising from the government shutdown related to the coronavirus pandemic.
Please read attached or contact our firm for more information.
Franchise Times Article: Lawsuit Alleges Edible Arrangements Founder Is Self-Dealing
Practical Business and Insurance Considerations for Hotels and Restaurants during the Covid-19 Crisis
Zarco, Einhorn, Salkowski P.A. is actively involved in helping business clients review insurance policies and real estate leases in attempts to recover unprecedented amounts of lost income due to the government mandated business closures to restrict spreading the COVID-19 strain of the coronavirus.The article attached published in Yahoo Finance summarizes some but not all of the key legal arguments being considered by our law firm for recovering these dramatic financial losses.Restaurants and Hospitality businesses are especially afflicted by this shutdown, as are many other sectors as well
Yahoo Finance via ACCESSWIRE Article: Practical Business and Insurance Considerations for Hotels and Restaurants during the Covid-19 Crisis
‘National Franchise Law leader Zarco Law Sues and Counter Sues Jack in the Box Franchisor on various suits and claims defending Franchisees’
Zarco Law, a longtime national leader in franchise law, is representing the national Jack in the Box (JIB) Franchisee Association and multi-store JIB operator San-Tex in various unrelated lawsuits and counter-suits against the JIB Franchisor. Founder and Managing Partner Robert Zarco is claiming ‘Unjust Enrichment’ and ‘Wrongful Termination’ amongst other legal arguments. “For the past several years, JIB has been unable to or unwilling to invest in marketing or menu innovation and unable or unwilling to establish an effective brand strategy,” the franchise operators allege in their suit. “Because there currently is no cohesive brand strategy, the Jack in the Box System is losing ground to competitors.”
San Antonio Express News Article: Jack in the Box, banished San Antonio operator battle in court
“Not so Fast!” Zarco Law Challenging Insurers’ Blatant Denials of Business Interruption Insurance Claims
Franchise Times features Robert Zarco in an article on fighting Insurers’ denials of Business Interruption Insurance claims on behalf of businesses suffering to remain afloat during the economic crisis caused by the coronavirus scare. Zarco Law is signing up a vast amount of cases on behalf of franchisees, hotels, restaurants and other businesses to review their unique situation and decide whether to move forward with a claim, or litigation if absolutely necessary. Zarco andthe firm made their name decades ago establishing legal precedent-setting case law in the franchise world in similarly challenging circumstances and is seeking to do it again in the insurance space. At a time when everyone is turning in the towel to insurance agents and others claiming the coverages don’t extend to viruses or pandemics, Zarco says “Not so fast! Let’s take a look on a case by case basis where the language is either vague or contradictory.”
Franchise Times Article: You Can Fight Insurers Denying Business Interruption Claims, Attorney Says
Legal Leader in Challenging Business Interruption Insurance Denial Claims
Attorney Robert Zarco is quickly becoming a leading national authority on protecting the economic interests of his vast small business and franchisee clientele (hundreds of brands) during this unexpected pandemic that is threatening the very existence of so many businesses and their financial obligations to their stakeholders. Zarco’s legal arguments can bring hope of financial recovery for many whose contracts leave loopholes or vague language which need to be assessed on a case by case basis. Read the article attached by National Restaurant NEWS for more information and call us now BEFORE you make a Claim or assume defeat 305-374-5418.
National Restaurant News Article : Here’s what your restaurant business insurance may (or may not) cover during the coronavirus pandemic
Taking the Bull by the Horns
Zarco Law is ‘Taking the Bull by the Horns’ in helping Restaurants and other Service Businesses Recoup Lost Income from the Government Shutdown intended to Combat COVID-19. Our firm has a long history of using creative successful legal strategies defending ‘David vs Goliath’, including accepting Contingency fees in qualifying cases in addition to a very small upfront fee. Be sure to contact our firm for a free initial consultation PRIOR to making an Insurance Claim!
Restaurant Bussiness : RESTAURANTS GET NO RELIEF FROM BUSINESS INTERRUPTION INSURANCE
Staying Ahead of the Curve
Founder and Managing Partner, Robert Zarco is again in the news at the forefront of strongly advocating to protect the interests and economic viability of franchisees during these unprecedented challenging circumstances that in many cases is requiring businesses to close down by government mandate.
Zarco and the law firm have discovered creative legal theories to help and deal with this crisis via a variety of opportunities, including recovery under Business Interruption Insurance even if exclusions exist, as well as other infrequently relied upon legal strategies. Zarco, Einhorn, Salkowski PA remains open and available during this crisis to help all existing and new business clients to navigate this turbulent time.
The accompanying article highlights the situation that is going to frequently arise throughout the country in businesses like yours, however, the article does not contain any of the legal strategies that our firm will be looking to rely upon in order to protect the interests of the firm’s clients.
Restaurant Business Article: With Plummeting Sales, Franchises Face Brutal Future
Author: Jonathan Maze
Publication: Restaurant Business Online
JACK IN THE BOX FRANCHISEES GET WHAT THEY WANT
Author: Jonathan Maze
Publication: Restaurant Business Online
Burger King customers seen telling manager to ‘go back to Mexico’ in viral video
Author: Michael Bartiromo
Publication: FOX News
Two Burger King customers tell Spanish-speaking manager to ‘go back to Mexico’
Author: Hasley Pitman
Publication: KVOA.com News Tucson
Pruco Can’t Escape Claims Over Ex-Law Partner’s $2M Policy
Author: Nathan Hale
Don’t Let A Rodent Mess Up Your Franchise Relationship
Author: Mahmood Khan
Publication: Forbes
The Joint: Price ‘Adjustment’ Incoming – 65% Downside On Busted Unit Economics
Author: The Friendly Bear
Publication: Seeking Alpha
National Jack in the Box Franchisee Association Issues Statement on Management’s Refusal to Address Franchisee Concerns During Q2 Earnings Call
Author: Jennifer Webb at Coltrin & Associates
Publication: Business Wire
BURGER KING DISMISSES ITS SUIT AGAINST A LARGE FRANCHISEE The 37 locations in Southern Texas owned by Guillermo Perales will remain open.
Author: Jonathan Maze
Publication: Restaurant Business
Burger King franchisee could lose 37 Valley locations
Author: Stephen Sealey
Publication: CBS 4 News Valley Central
Burger King sues Texas firm, seeks to force store sale
Author: Rick Kelley
Publication: The Monitor
Burger King demanda a franquicia tras denuncia de ratas La compañía puso fin a los acuerdos de franquicia a raíz de reportajes de Telemundo 40 Investiga sobre denuncia de ratas.
Author: Antonio Rodriguez
Publication: Telemundo 40
BURGER KING FRANCHISEE PUSHES BACK AGAINST COMPANY’S LAWSUIT Guillermo Perales’ attorney said the brand’s termination of 37 Texas restaurants was improper and that the company is trying to get the operator to sell.
Author: Jonathan Maze
Publication: Restaurant Business Online
Papa John’s Goes Big With Drafting a New Board Member Shaquille O’Neal Could Be Slam Dunk That Helps Sales Grow and Stores Stay Open
Author: Richard Lawson
Publication: CoStar
Atty Must Return Docs In Row Over Ex-Partner’s $2M Policy
Author: Nathan Hale
Publication: LAW 360
Pending Legal Nightmare Likely To Halt Franchise Growth, Making El Pollo Loco Uninvestible
Author: The Friendly Bear
Publication: Seeking Alpha
Papa John’s Makes Move to Recover the Sales Pie Lost to Controversy
Author: Richard Lawson
Publication: CoStar News
The Biggest Restaurant Newsmakers of 2018
Author: Jonathan Maze
Publication: Restaurant Business Online
“Franchise King” Robert Zarco Celebrates Firm’s 25th Anniversary With Grand Opening Of Sprawling New Office
Author: Alejandra Tenorio
Publication: Haute Living
H&R Block’s ‘no-poach’ hiring practices under fire from lawsuit, state investigation
Author: Mark Davis
Publication: The Kansas City Star
Jack in the Box Sued by Franchise Group for Breach of Contract
Author: Nancy Luna
Publication: Nation’s Restaurant News
Franchise group sues San Diego’s Jack in the Box over marketing, remodeling costs
Author: Mike Freeman
Publication: The San Diego Union-Tribune
Papa John’s franchisees’ attorney: Past year had ‘a big, big impact on the franchisees’ net income’
Author: S.A. Whitehead
Publication: Pizza Marketplace
Papa John’s Franchisees Demand Management Do Something About Falling Sales
Author: Daniel B. Kline
Publication: The Motley Fool
National Papa John’s Franchisee Association Hires Prominent Franchisee Attorney, Robert Zarco, Esq.
Author: Business Wire
Publication: AP News
Papa John’s franchisees lawyer up
Author: Erica Shaffer
Publication: Meat+Poultry
Papa John’s Franchisees Hire a High-Powered Attorney
Author: Jonathan Maze
Publication: Restaurant Business
Papa John’s Franchisees Call in Specialist Lawyer as Sales Sag
Author: Leslie Patton
Publication: Bloomberg
McDonald’s Franchise Owners Are Not Alone
Author: Gary Occhiogrosso
Publication: Forbes
Fast-Food Franchisees Band Together, Discover Power of Associations
Author: Ernie Smith
Publication: Associations Now
FRANCHISEE TENSIONS BUBBLE TO THE SURFACE
Author: Jonathan Maze
Publication: Restaurant Business
We Can’t Cut Our Way To Prosperity’: Why Jack In The Box Franchisees Want A New CEO
Author: Alicia Kelso
Publication: Forbes
Here Is Why Jack in the Box Franchisees Are Demanding a Leadership Change
Author: Alicia Kelso
Publication: Forbes
Franchise Owners Say Jack in the Box CEO Needs to Go, CMO Wanted
Author: Don Sniegowski
Publication: Blue Mau Mau
Jack in the Box Franchisees Call for CEO Ouster
Author: Danny Klein
Publication: QSR
Failed merger sparks lawsuit against prominent Polk lawyer, former Florida Bar president John Frost, partner Peter Van Den Boom
Author: John Chambliss
Publication: The Ledger
NLRB Proposes New Rule to Revert Franchisor Liabilities to Franchisees
Publication: Blue Mau Mau
Prudential To Stay In Suit Over Ex-Law Partner’s $2M Policy
Author: Carolina Bolado
Publication: Law 360
Supplement Maker Can’t Prove Consent Judgment Violated
Author: Emma Cueto
Publication: Law 360
El Pollo Loco Verdict Makes ‘New Law,’ Attorney Says
Author: Beth Ewen
Publication: Franchise Times
El Pollo Loco Ordered to Pay $8.8M in Damages to Franchisee
Author: Nancy Luna
Publication: Nation’s Restaurant News
Tensions Brew between Tim Hortons Franchisees and Parent Company
Author: The Canadian Press
Publication: Terrace Standard
Jury Awards $8.8M Damages to El Pollo Loco Franchisees over Encroachment
Author: Janet Sparks
Publication: Blue Mau Mau
Tensions Brew between Tim Hortons Franchisees and Parent Company
Author: The Canadian Press
Publication: Coast Mountain News
Tim Hortons U.S. Franchisee Association Sues Parent Company
Author: The Canadian Press
Publication: The Globe and Mail
Tim Hortons U.S. Franchisees Launch Suit Against Corporate Parent
Author: Hollie Shaw
Publication: Financial Post
U.S. Tim Hortons Franchisee Association Sues Parent Company Over Contract Clause
Author: The Canadian Press
Publication: Times Colonist
Miami retail broker sues over life insurance policy of late husband
Author: Katherine Kallergis
Publication: The Real Deal
After his law partner’s suicide, he got the widow to sign over millions. Enter lawsuit.
Author: Howard Cohen
Publication: Miami Herald
Miami Lawyer Accused of Bilking Former Partner and His Widow
Author: Samantha Joseph
Publication: Daily Business Review
Attorney Robert Zarco Wins Landmark Case Against El Pollo Loco, Inc.
Author: Colin Daniels
Publication: Haute Living
“Franchise King” Robert Zarco On The Expansion Of His Highly-Regarded Litigation Practice
Author: Antonia Debianchi
Publication: Haute Living
California Jury Finds that El Pollo Loco, Inc. Violated the Implied Covenant of Good Faith by Encroaching on Franchisees’ Non-Exclusive Territory and by Failing to Offer Encroaching Restaurants to Nearby Franchisees
California Jury Finds That El Pollo Loco, Inc. Violated the Implied Covenant of Good Faith by Encroaching On Franchisees’ Non-Exclusive Territory and by Failing to Offer Encroaching Restaurants to Nearby Franchisees
Publication: Digital Journal
Faena Rose Hosts Chef Michael Solomonov for an Exclusive Dinner at the Robert Zarco Residence
Author: Photography by Alejandro Chavarria
Publication: World Redeye
‘Answers sought, answers denied’ as Tim Hortons/RBI union sours
Author: Beth Ewen
Publication: Franchise Times
Tim Hortons franchisee dispute spreads to U.S.
Author: Jonathan Maze
Publication: Nation’s Restaurant News
Tim Hortons Franchisee Row Moves South of the Border
Author: Marina Strauss
Publication: The Globe and Mail
All Star Boxing v. Alvarez Makes Top 50 Verdicts in Florida!
Hyundai Motor Company Sued
Publication: PR Newswire
Franchise Attorney Robert Zarco On Franchisee Rights And How To Avoid Battling A Deep-Pocketed Brand
Author: Amy Feldman
Publication: Forbes
Boxing Promoter Takes Narrow Victory in Contract Case
Author: Celia Ampel
Publication: Daily Business Review
Florida jury orders Canelo Alvarez to pay $8.5M in contract case
Author: Dan Rafael
Publication: ESPN
Otorgan $8.5 millones a empresario de Miami en juicio contra Canelo y De La Hoya
Author: Jorge Ebro
Publication: El Nuevo Herald
“Canelo” Alvarez pierde jucio en Miami
Author: Notimex
Publication: El Universal
Canelo Alvarez on the hook for $8.5 million in breach of contract case
Author: Mitch Abramson
Publication: The Ring
Jury finds Saul ‘Canelo’ Alvarez has to pay former promoter $8.5 million
Author: Lance Pugmire
Publication: LA Times
Things Not Going Well For Canelo, Golden Boy in Ongoing Trial
Author: Miguel Rivera
Publication: BoxingScene.com
Miami-Dade commissioners vote to let Jackson Health keep profits
Author: Daniel Chang
Publication: Miami Herald
Canelo Alvarez is scheduled to testify Friday in All-Star Boxing trial
Author: Mitch Abramson
Publication: The Ring
‘Canelo’ Álvarez y Oscar de la Hoya se negaron a hablar tras inicio de juicio en su contra
Publication: Univision Deportes
Jurors Set For All-Star Boxing vs. Canelo/Golden Boy Lawsuit
Author: Jake Donovan
Publication: BoxingScene.com
Inician jucio contra “Canelo” Alvarez en Miami
Author: Mayor J. King
Publication: Zona De Boxeo
Juicio contra Canelo Alvarez y Golden Boy comenzó en Miami
Author: Carlos Narvaez Rosario
Publication: ESPN Deportes
Canelo, Golden Boy Dig in For Lengthy Court Battle With All-Star
Author: Jake Donovan
Publication: BoxingScene.com
Canelo Álvarez y De la Hoya sorprenden con presencia temprana en juicio en Miami
Author: Jorge Ebro
Publication: El Nuevo Herald
No More Delays: All-Star Boxing Gets Day in Court Versus Canelo
Author: Jake Donovan
Publication: BoxingScene.com
Zarco: NLRB Ruling is Good for Franchisees
Author: Scott Van Voorhis
Publication: Blue Mau Mau
Canelo Álvarez podría perder contrato con HBO en Mayo-23
Author: Rey Sanchez
Publication: Ring Side Fighting News
Don King posts $1 million to get Broward judge to block martial arts fight
Author: Sofia Santana
Publication: The Palm Beach Post