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D'Angelo Franchisees Sue over Alleged Kickbacks
D'Angelo Sandwich Shop franchisees have sued their franchisor, Papa Gino's, in U.S. District Court in Boston for allegedly overcharging them for food supplies and janitorial services. According to the lawsuit, the commissions that D'Angelo received from one of its vendors, U.S. Foodservice, violated federal antitrust laws. The franchisees are seeking $4.5 million, which reflects triple damages.
According to court documents, U.S. Foodservice charged franchisees a $28/week fee for deliveries, but it paid Papa Gino's $157 per store, per week for each franchised restaurant that used it as the supplier. Papa Gino's views this arrangement as a “commission,” but the franchisees see it as a “kickback,” said L. Seth Stadfeld, Weston, Patrick, Willard, & Redding, P.A., one of the plaintiffs' attorneys. “Not only have the charges and the commissions raised franchisees' costs, but they also had the effect of putting the franchisees at a competitive disadvantage with company-owned stores in the same market area,” he said.
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
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