franchise - arbitration

In disputes between a franchisee and a franchisor, submitting the dispute for determination to private, unofficial persons or “arbitrators.” Agreement to arbitrate must be stated, for example, in the franchise agreement, and arbitration findings are binding on both parties. A court’s only basis for review of an arbitrator’s decision is whether it was arbitrary, capricious, and an abuse of the arbitrator’s discretion or beyond the arbitrator’s authority.

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