Franchising (& Distribution) Currents

The appellate court reasoned that the issue would be ripe for adjudication only once a record was developed as to whether the franchise agreement was one of adhesion, the arbitration clause was unconscionable, or plaintiffs made a conscious business decision that the franchise agreement's overall benefits outweighed the detriments of the out-of-state arbitration clause. Furthermore, the court held that arbitrability, i.e.\n The court further found the franchisor was likely to succeed on the merits of its claims against the terminated franchisee for trademark infringement and unfair competition under federal and California state statutes because the franchisor properly terminated the parties' franchise agreement and because the franchisee conceded it continued to use the franchisor's marks after notification of the termination. The Southern District of Mississippi found a genuine issue of material fact existed as to whether the relationship between the franchisor and the franchisee was an employer-employee relationship or whether the franchisee was an independent contractor because conflicting factors in the franchise agreement supported the existence of both arrangements.