Franchisee Asks To Dodge Arbitration After Closing Eateries

By Joyce Hanson (January 3, 2019, 6:21 PM EST) -- The franchise owner of nine closed Dickey's barbecue restaurants urged a California federal court Wednesday to stop the chain from forcing him into arbitration over whether he breached his franchise agreements by closing the eateries, saying the arbitration provisions are unenforceable.

Jared Katzenbarger, the owner and operator of the California-based restaurants under nine separate franchise agreements with Dallas-headquartered Dickey's Barbecue Restaurants Inc., asked the court to stay arbitration proceedings that Dickey's has initiated with the American Arbitration Association. The arbitration provisions in the franchise agreements are unenforceable because they are unconscionable under California law, Katzenbarger said, and Texas law should not be applied....

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