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Arbitration Pacts In Franchising: One Size Doesn't Fit All

Law360 (May 22, 2019, 11:10 AM EDT) -- While arbitration provisions were previously the norm, many franchise companies have started to shift away from making this the default and preferred method for dispute resolution. The decision whether to require binding arbitration of franchise disputes can be a million-dollar question for any franchise company.

On the one hand, and at one extreme, the prospect of defending a franchise system-wide class action over multiple years in a court of law will not sit well with most franchisors. On the other hand, and at the other extreme, the risk of an adverse ruling by a runaway arbitrator with no right of judicial...

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