Do franchise litigators have a role to play in the drafting of franchise agreements?
Washington D.C. litigator Eric Yaffe discusses the importance of drafting franchise agreements to avoid litigation.
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The franchise agreement is the governing document between the franchisor and franchisee and it lays out the rights and obligations of both parties. If something goes wrong, then the matter can in fact end up in court if one or the other side breaches the agreement, and over the years litigators obviously see the problems that can occur in connection with franchise agreements and are positioned to draft those agreements in a way to try to avoid any potential problems and try to create favorable language for the franchisor client. We certainly play a big role in doing that as franchise litigators.
There are a number of areas in which we will play a role in drafting, including jury waiver provisions, forum selection clauses, whether something should be arbitrated or litigated, whether there’s an arbitration provision in the contract, whether there are obey all laws clauses, meaning that the franchisee has to obey the laws of the states and federal governments in connection with the operation of their locations. So I think franchise litigators actually have a very unique perspective on what should and perhaps should not be in a franchise agreement, and we can help our transactional colleagues in drafting the appropriate language for our franchisor clients.