Menu
Mar 15, 2013

Franchisees Bound by Arbitration Clauses

The U.S. Court of Appeals in Boston found that a group of janitorial business owners, who became franchisees as transferees of franchise agreements, had adequate notice of the arbitration provisions contained in those agreements prior to their transfer.  Thus, the court ruled that the franchisees were required to arbitrate their myriad claims against the franchisor. The transfer agreements executed by the franchisees incorporated the arbitration clauses by reference, and each of the franchisees had guaranteed the performance of “all responsibilities, duties, indebtedness and obligations of the [previous [f]ranchisee] under the [Franchise] Agreement.”  While the franchisees argued that it would be… Read more