Awuah v. Coverall: What, If Anything, Does the Dicta Mean for State Regulators?

What exactly can a state regulator do with respect to arbitration clauses in franchise agreements? The answer appears to be, "The regulator cannot do much."

7 minute read January 31, 2013 at 10:03 AM

Jeffery S. Haff

Awuah v. Coverall: What, If Anything, Does the Dicta Mean for State Regulators?

The Awuah v. Coverall North America, Inc. case primarily involves the issue of whether “franchisees” in the Coverall system were, in reality, “employees” under Massachusetts law. In a recent opinion, the First Circuit addressed the issue of an arbitration clause in the parties' franchise agreements and whether it was unenforceable.

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