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Court Watch

By Genevieve Beck and Jon Swierzewski
July 28, 2005

Contract Validity to Be Determined By Arbitration Unless the Arbitration Clause Itself Is Alleged to Be Invalid

The U.S. District Court for the Northern District of Illinois has ruled that a franchisor's arbitration clause can be used to require arbitration about contract terms unless the arbitration clause itself is alleged to be invalid. The Quizno's Master, Master, LLC and The Quizno's Franchise Company, LCC v. Shahe Kadriu, CCH Business Franchise Guide' 13,051 (N.D. Ill. April 11, 2005).

Shahe Kadriu was a Quizno's franchisee in Chicago. Her franchise agreement provided that if her store was closed for 5 consecutive days, it would be considered abandoned, and the franchise agreement would be terminated. Kadriu told Quizno's she was closing her store. After the store had been closed for 5 straight days, Quizno's declared the store abandoned and terminated the franchise agreement.

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