Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
Sona Squares Off Against Franchisees
Sona Laser Centers and Sona MedSpas is locked in an increasingly bitter dispute with some of its original franchisees, involving not only typical franchise issues but also the franchisees' allegations that at least one of the services they offer to customers, a laser treatment for hair removal, does not work. While franchisees have received considerable favorable publicity in the fight to date, Sona executives say that the actions of the franchisees belie some of their complaints, and Sona remains committed to building a national chain of spas.
Among the challenges facing Sona are the following, according to Michael Garner of Dady & Garner, P.A. (Minneapolis), who is representing some of the franchisees:
- In April 2006, the state of Mary-land issued a cease-and-desist order against Sona, directing it to show cause why the company should not be permanently enjoined from selling franchises in Maryland;
- In February 2006, a federal court in Alexandria, VA, denied Sona's request to enforce its post-term non-competes against its breakaway Washington, DC-area developer. In denying the motion, the judge observed that on the record before him, the franchisee's proof of Sona's fraud, which he found 'arresting' and well documented, precluded Sona from showing a likelihood of 'success on the merits'; and
- Arbitration proceedings with three franchisees and court challenges with two other franchisees, in which Sona is seeking to enforce arbitration clauses. The challenges claim fraud and violation of franchise acts and RICO statutes.
The franchisees battling Sona are legacy operators that were in the system when Carousel Capital, a Charlotte, NC, investment firm, acquired it in 2004. 'It's a veiled attempt by some of the legacy franchisees to disenfranchise and not pay royalties,' said Heather Rose, CEO of Sona, in an interview with FBLA. 'We have successfully moved each case to arbitration so far, and we believe we will prevail in court.'
The DOJ's Corporate Enforcement Policy: One Year Later
The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.
Use of Deferred Prosecution Agreements In White Collar Investigations
This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.
How AI Has Affected PR
When we consider how the use of AI affects legal PR and communications, we have to look at it as an industrywide global phenomenon. A recent online conference provided an overview of the latest AI trends in public relations, and specifically, the impact of AI on communications. Here are some of the key points and takeaways from several of the speakers, who provided current best practices, tips, concerns and case studies.
The DOJ's New Parameters for Evaluating Corporate Compliance Programs
The parameters set forth in the DOJ's memorandum have implications not only for the government's evaluation of compliance programs in the context of criminal charging decisions, but also for how defense counsel structure their conference-room advocacy seeking declinations or lesser sanctions in both criminal and civil investigations.