It has long been settled that private antitrust disputes are arbitrable. In 1985, the US Supreme Court ruled that antitrust disputes are arbitrable if the claims are "encompassed within a valid arbitration clause in an agreement embodying an international commercial transaction".
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What is Mandatory Arbitration?
Arbitration is a voluntary form of alternative dispute resolution (ADR) that is intended to provide consenting parties with an efficient and cost-effective way to avoid the burdens of full-blown litigation. In many commercial situations, it will be in both parties’ best interests to acknowledge their differences and work toward a resolution without spending unnecessary time (and money) going to court.
What happens if you don't file an arbitration claim?
Franchise agreements often have very short “limitations” periods. If you do not file your arbitration claim in time, you can lose your rights. These are just a few of the issues. Equally important, franchisors often consider their arbitration clauses to be “non-negotiable.”. As a result, if the franchise agreement for your desired franchise ...
What are the issues that are important to franchisees?
Brand recognition, royalty rates, training, the initial investment – these are all issues that, for most prospective franchisees, are top of mind. But, there is another issue that can be just as important as these (if not more), and that also serves to differentiate certain franchisors from others. This is the issue of mandatory arbitration.
Do franchise agreements require arbitration?
If your franchise agreement has an arbitration claus e, then you are subject to mandatory arbitration. Essentially, when you signed the agreement, you “voluntarily” agreed to submit all relevant disputes to arbitration regardless of whether it is in your best interests to do so when the time actually comes. Franchisors tend to like mandatory ...