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Mandatory Arbitration Clauses Franchise Agreements

Foley & Lardner LLP

Franchise Agreements’ Arbitration Clauses Are Enforced Over Forum Selection Clauses in Subsequent Agreements with Franchisor

Foley & Lardner LLP on

Franchise agreements’ arbitration clauses are enforceable even when subsequent agreements between the same parties contain forum selection clauses requiring litigation in different forums. Additionally, a trial court’s...more

Lewitt Hackman

Franchisee 101: Party Pauper

Lewitt Hackman on

Morgan Rothschild (“Rothschild”), sole owner of the Party Princess franchise system, sold a party planning franchise for the territory of Washington and promised the franchisee would achieve certain sales. Prior to the sale,...more

Lewitt Hackman

FRANCHISOR 101: Injunction Bottleneck

Lewitt Hackman on

A restaurant franchisor, World of Beer Franchising ("WOB"), recently lost an appeal to enforce a post-termination restriction against a franchisee launching a competing business. Both the trial and appellate court ruled...more

Carlton Fields

Ninth Circuit: Arbitration Provision Contained In Sham Agreement Is Not Enforceable

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The Ninth Circuit reversed a district court ruling that had compelled arbitration, holding that a party may not enforce an arbitration agreement where the clause is contained in a nonbinding contract. The parties had entered...more

BakerHostetler

Arbitration Provision Rejected in Franchise Dispute

BakerHostetler on

In Case Del Caffe Vergnano SPA v. ItalFlavors, LLC, the Ninth Circuit held that the court, not an arbitration tribunal, could review a franchise contract and determine it was a sham, based upon a second contract signed...more

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