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Court Watch

By Susan H. Morton and David W. Oppenheim
November 30, 2004

Arbitration Clause in Franchise Agreement Upheld Despite Sale of Unregistered Franchise

The Illinois Supreme Court has reversed the decision of a trial court and intermediate appellate court, and has held that an arbitration clause in a franchise agreement was enforceable despite the fact that the franchisor sold the franchise to the franchisee in Illinois without registering its UFOC with the Illinois Attorney General's Office. Jensen v. Quik International, 2004 WL 2609913 (Ill. 2004). 801 N.E.2d 1124 (Ill. App. Ct. 2003). The appellate opinion in this case was previously reported in the March 2004 issue of this publication. The facts are set forth in the appellate opinion reported at 801 N.E.2d 1124 (Ill. App. Ct. 2003).

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