Conflicting Court Decisions Likely to Confuse Future Franchisee Plaintiffs
Several recent court decisions have reached conflicting conclusions regarding the enforcement of the class action bar for franchisees. It appears " the enforceability of the class action bar provision in franchise agreements may be determined more by where a franchisor gets sued than the language of its franchise agreement."
Two cases involved Quiznos and a third case was against Melt Franchising.
In each case the plaintiffs argued that enforcement of the class action bar was unconscionable. While the disparity in the opinions in these cases may raise some eyebrows, it is the disparity in their analysis that is perhaps most startling. — International Law Office (you can click on link only ONCE, thereafter link will not bring you to story)
What are the consequences of these conflicting opinions for franchisees in the future?