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Seattle Krispy Kreme Hit with Sexual Harassment, Discrimination Claims
A large Krispy Kreme franchisor in the western United States is facing lawsuits from at least five former employees for the conduct of supervisors and managers in one of its Seattle-area outlets. In a class-action lawsuit in King County Superior Court, Hispanic former employees allege that they were sexually harassed and paid less than white employees doing the same jobs. When they complained, the workers were fired, said Mark Shepherd, partner with Seattle-based Larson Hart & Shepherd, who is representing the workers.
The lawsuit has been filed against Krispy Kreme Doughnuts, ICON LLC (developer and owner of Krispy Kreme stores in the Northwest), and Kreme-Works Washington LLC (operator of the franchises).
'Our allegations and claims include disparate treatment, disparate pay, and sexual harassment by certain store managers,' Shepherd told FBLA.
Krispy Kreme and ICON LLC officials did not respond to requests for comment.
Problems at the franchise store in Issaquah, WA, a suburb of Seattle, started almost immediately after it opened in October 2001, said Shepherd. 'Some of my clients were instrumental in getting the store, which was the first Krispy Kreme in Seattle, opened. The store did extremely well, due in part to their hard work,' he said. 'And the treatment they received was inexcusable.'
Management of ICON and Kreme-Works did not protect the Hispanic workers, and 'when confronted with complaints, management has refused to protect the rights of their employees. Krispy Kreme management ignored the abusive and unlawful acts performed by their managers, and fired employees who dared to complain,' Shepherd said. The managers mentioned in the legal complaint have never been punished for their behavior, he added. Instead, he says that they were transferred to other Krispy Kreme stores in the state of Washington.
Shepherd added that more plaintiffs may come forward as he proceeds on the discovery portion of the lawsuit. He said he is also hearing from Krispy Kreme employees and former employees in other parts of the country who claim to have suffered from discrimination and harassment.
The case is scheduled to go to trial in late 2004.
Pizza Franchises Reach Trade Secrets Settlement
In June, pizza franchisor Papa John's International, Inc., reached a settlement with Pizza Magia International LLC, a new pizza chain that is being developed by former Papa John's executives and franchisees. The consent decree was confirmed by the U.S. District Court, Western District of Kentucky, and signed on June 13, 2003.
Papa John's filed a lawsuit in September 2000, claiming that three Pizza Magia executives violated federal trademark law and misappropriated its trade secrets and its current file. The complaint also alleged breach of confidentiality and non-compete agreements by Pizza Magia officers who had worked for Papa John's.
Cited in the complaint were J. Daniel Holland, CEO of Pizza Magia, who was formerly president of Papa John's; Robert A. Sleep; and Bradley Hamilton, the founder of Pizza Magia. Holland purchased Pizza Magia from Hamilton in March 2000.
The consent decree does not identify which changes Pizza Magia has promised to make. Papa John's would not discuss the settlement in detail, citing a confidentiality agreement, and Holland did not return phone calls seeking comment.
The consent decree does validate Papa John's non-compete agreements for a 10-mile radius of any franchised or company-owned restaurant for two years. The consent decree also permanently enjoins the defendants 'from using or misappropriating, or attempting to use or misappropriate, any Papa John's trade secrets and confidential information.'
Papa John's International Inc. is the third-largest pizza chain in the United States, with more than 2,750 outlets in 49 states. Pizza Magia has 40 restaurants in five states.
In June, pizza franchisor Papa John's International, Inc., reached a settlement with Pizza Magia International LLC, a new pizza chain that is being developed by former Papa John's executives and franchisees. The consent decree was confirmed by the U.S. District Court, Western District of Kentucky, and signed on June 13, 2003.
Papa John's filed a lawsuit in September 2000, claiming that three Pizza Magia executives violated federal trademark law and misappropriated its trade secrets and its current file. The complaint also alleged breach of confidentiality and non-compete agreements by Pizza Magia officers who had worked for Papa John's.
Cited in the complaint were J. Daniel Holland, CEO of Pizza Magia, who was formerly president of Papa John's; Robert A. Sleep; and Bradley Hamilton, the founder of Pizza Magia. Holland purchased Pizza Magia from Hamilton in March 2000.
The consent decree does not identify which changes Pizza Magia has promised to make. Papa John's would not discuss the settlement in detail, citing a confidentiality agreement, and Holland did not return phone calls seeking comment.
The consent decree does validate Papa John's non-compete agreements for a 10-mile radius of any franchised or company-owned restaurant for two years. The consent decree also permanently enjoins the defendants 'from using or misappropriating, or attempting to use or misappropriate, any Papa John's trade secrets and confidential information.'
Papa John's International Inc. is the third-largest pizza chain in the United States, with more than 2,750 outlets in 49 states. Pizza Magia has 40 restaurants in five states.
Seattle Krispy Kreme Hit with Sexual Harassment, Discrimination Claims
A large Krispy Kreme franchisor in the western United States is facing lawsuits from at least five former employees for the conduct of supervisors and managers in one of its Seattle-area outlets. In a class-action lawsuit in King County Superior Court, Hispanic former employees allege that they were sexually harassed and paid less than white employees doing the same jobs. When they complained, the workers were fired, said Mark Shepherd, partner with Seattle-based Larson Hart & Shepherd, who is representing the workers.
The lawsuit has been filed against Krispy Kreme Doughnuts, ICON LLC (developer and owner of Krispy Kreme stores in the Northwest), and Kreme-Works Washington LLC (operator of the franchises).
'Our allegations and claims include disparate treatment, disparate pay, and sexual harassment by certain store managers,' Shepherd told FBLA.
Krispy Kreme and ICON LLC officials did not respond to requests for comment.
Problems at the franchise store in Issaquah, WA, a suburb of Seattle, started almost immediately after it opened in October 2001, said Shepherd. 'Some of my clients were instrumental in getting the store, which was the first Krispy Kreme in Seattle, opened. The store did extremely well, due in part to their hard work,' he said. 'And the treatment they received was inexcusable.'
Management of ICON and Kreme-Works did not protect the Hispanic workers, and 'when confronted with complaints, management has refused to protect the rights of their employees. Krispy Kreme management ignored the abusive and unlawful acts performed by their managers, and fired employees who dared to complain,' Shepherd said. The managers mentioned in the legal complaint have never been punished for their behavior, he added. Instead, he says that they were transferred to other Krispy Kreme stores in the state of Washington.
Shepherd added that more plaintiffs may come forward as he proceeds on the discovery portion of the lawsuit. He said he is also hearing from Krispy Kreme employees and former employees in other parts of the country who claim to have suffered from discrimination and harassment.
The case is scheduled to go to trial in late 2004.
Pizza Franchises Reach Trade Secrets Settlement
In June, pizza franchisor
Papa John's filed a lawsuit in September 2000, claiming that three Pizza Magia executives violated federal trademark law and misappropriated its trade secrets and its current file. The complaint also alleged breach of confidentiality and non-compete agreements by Pizza Magia officers who had worked for Papa John's.
Cited in the complaint were J. Daniel Holland, CEO of Pizza Magia, who was formerly president of Papa John's; Robert A. Sleep; and Bradley Hamilton, the founder of Pizza Magia. Holland purchased Pizza Magia from Hamilton in March 2000.
The consent decree does not identify which changes Pizza Magia has promised to make. Papa John's would not discuss the settlement in detail, citing a confidentiality agreement, and Holland did not return phone calls seeking comment.
The consent decree does validate Papa John's non-compete agreements for a 10-mile radius of any franchised or company-owned restaurant for two years. The consent decree also permanently enjoins the defendants 'from using or misappropriating, or attempting to use or misappropriate, any Papa John's trade secrets and confidential information.'
In June, pizza franchisor
Papa John's filed a lawsuit in September 2000, claiming that three Pizza Magia executives violated federal trademark law and misappropriated its trade secrets and its current file. The complaint also alleged breach of confidentiality and non-compete agreements by Pizza Magia officers who had worked for Papa John's.
Cited in the complaint were J. Daniel Holland, CEO of Pizza Magia, who was formerly president of Papa John's; Robert A. Sleep; and Bradley Hamilton, the founder of Pizza Magia. Holland purchased Pizza Magia from Hamilton in March 2000.
The consent decree does not identify which changes Pizza Magia has promised to make. Papa John's would not discuss the settlement in detail, citing a confidentiality agreement, and Holland did not return phone calls seeking comment.
The consent decree does validate Papa John's non-compete agreements for a 10-mile radius of any franchised or company-owned restaurant for two years. The consent decree also permanently enjoins the defendants 'from using or misappropriating, or attempting to use or misappropriate, any Papa John's trade secrets and confidential information.'
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