Missouri Court Of Appeals Finds Arbitration Provision Unconscionable

A recent decision by a Court of Appeals in Missouri highlights the importance for franchisors of careful drafting of the arbitration clauses in their franchise agreements. Litigation over issues like this — whether a dispute must be submitted to arbitration or instead whether it can be decided by a court — is a huge drain on the parties’ resources (time and money). A franchisor would be well-advised to think carefully about heavily one-sided arbitration clauses before including them in its agreements.

Capriotti’s CEO Talks Expansion Plans

Las Vegas-based Capriotti’s Sandwich Shop is looking to expand. The company is looking for expansion deals that would commit well-funded buyers to open a number of stores in defined territories. This strategy can work very well for a franchise company, so long as it understands at the outset how using development agreements for expansion is fundamentally different from growth through adding single-unit operators.

IFA Report Shows The Economic Impact Of Franchising

As part of its ongoing efforts to increase the public awareness of the economic impact of franchising, The International Franchise Association has released new statistics based on its report, The Economic Impact of Franchised Businesses, Vol. 3, and the 2007 Economic Census. The web site (available at IFA – Report) provides information regarding the number of jobs and franchise establishments in the U.S.

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