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Arbitration: One More Look at Its Virtues and Vices

By Rupert M. Barkoff
March 29, 2012

For several years, I have felt like Hamlet when I ruminate on the subject of arbitration clauses: To include, or not to include, an arbitration clause in the franchise agreements I draft. We all know the pros of arbitration that have been recited for many years. It is faster, cheaper, and more private ' so they say. However, I sense that “anecdatal” (anecdote and data) experiences neither unequivocally affirm nor deny this contention. And I perceive that many franchisor-oriented lawyers now have a more jaundiced view of arbitration than was previously the case, as do many franchisee-oriented lawyers.

I have not researched whether my hypothesis about franchisor skepticism is true, but a recent decision from the U.S. District Court for the Southern District of Ohio shows at least one case where a franchisee lawyer, and presumably his franchisee client, preferred not to arbitrate.

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