I. Introduction
Franchises are a strong component of the U.S. economy. In 2004, there were over 767,000 franchises in the United States which contributed 9.8 million direct jobs to the economy. [1] According to a 2002 study, half of the franchise agreements analyzed contained arbitration clauses. [2] With the passage of the Federal Arbitration Act and subsequent court rulings, a policy favoring arbitration has been established. [3] In fact, most courts will enforce arbitration clauses in a majority of the cases. [4] In contrast to this trend, both congressional legislation and court decisions have been seen to back away from an unwavering support of pre-dispute arbitration. Should the courts and congress become more involved in the use of arbitration in the context of a franchise relationship? [More]