Russian Franchisee Wants Subway's Arbitration Award Tossed

By Jasmin Jackson (November 3, 2021, 7:04 PM EDT) -- A franchisee for Subway sandwich shops in Russia has urged a New York federal judge not to enforce an arbitral award requiring a shutdown of hundreds of storefronts valued at $60 million, arguing that the international food franchisor evaded an obligatory evidence hearing.

In a 13-page filing on Monday, Subway Russia Franchising Company LLC said U.S. District Judge Jed S. Rakoff can't enforce a judgment that allows Subway International BV to shut down nearly 500 allegedly underperforming Russian storefronts without going through a mandatory arbitration process. The franchisee argues that it never agreed for an arbitrator to determine legal disputes prior...

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