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.