Jeffrey Rosin's profile

How Arbitration Clauses Work with Franchises

Boston, Massachusetts, attorney Jeffrey Rosin provides counsel in business and employment litigation at O’Hagan Meyer. One longstanding area of focus for lawyer Jeffrey “Jeff” Rosin is franchise law.

While franchise disputes can end in litigation, a more common route is arbitration proceedings outside of the courtroom. Arbitrators weigh the evidence and facts provided by the franchisor and franchisee and deliver a legally enforceable and binding decision. This process differs significantly from mediation, which offers nonbinding resolutions.

While arbitration clauses are not required in franchise agreements, they are common since this expedited approach to dispute resolution can be less expensive than litigation. When such a clause is not included in the original document, an attorney can add an arbitration clause if both parties are willing.

One drawback of arbitration for the franchisee is that restrictions may be placed on obtaining relevant documents and information via discovery. These restrictions can make gathering evidence challenging in the discovery process, particularly in claims alleging fraud.

How Arbitration Clauses Work with Franchises
Published:

How Arbitration Clauses Work with Franchises

Published: