Law
Arbitration Clauses in International Franchise Agreements
Quick fact
Around 90% of international commercial contracts include arbitration clauses because arbitral awards are enforceable in over 170 countries under the New York Convention, far more than court judgments.
Why this is interesting
You sign a franchise agreement to open a coffee shop in another country, and months later a dispute erupts over fees. Where do you resolve it—a local court, or somewhere entirely different? The answer often lies in a clause you barely noticed.