Franchisor obtains $2,064,735.75 arbitration award against failed area developer.

In an arbitration decision handed down by the American Arbitration Association, Rita’s Franchise Company, LLC obtained an award against a Washington state area developer for $2,064,735.75, consisting of damages of $738,892.27 to date of hearing, counsel fees of $1,012,565.92, and reimbursement of costs. The award

A Massachusetts franchisor can sue an Oregon franchisee in Massachusetts, according to a recent decision from the United States Court of Appeals for the First Circuit. The case contains important lessons for franchisors seeking to keep lawsuits on their home turf.

When parties to a lawsuit hail from different states – or, as here, different

So, your franchise agreement has an airtight arbitration provision…right?  It probably says that if any disputes arise out of your franchise agreement, then they must be arbitrated (rather than litigated).  But what happens when creative plaintiff’s counsel argues that the arbitration provision itself is unenforceable?  Does your arbitration provision require that question to be arbitrated?

Arbitration clauses are a staple of modern contract law.  As a plethora of cases show, public policy highly favors arbitration, and where the enforceability of an arbitration clause is at issue, courts will generally find in favor of arbitration.  In turn, arbitration clauses have become common in franchising agreements.  Through arbitration clauses, franchisors can require

Contributed by Glenn S. Grindlinger

Last week, in American Express Co. v. Italian Colors Restaurant, No. 12-133 (June 20, 2013), the United State Supreme Court held that an arbitration provision in a commercial agreement prohibiting the parties from arbitrating matters on a class-wide basis was enforceable under the Federal Arbitration Act (“FAA”) even