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Why Franchise Mediation Clauses Are Under Fire in 2026
Episode 22 of Franchise Conversations examines the growing backlash against mandatory mediation clauses in franchise agreements. Lucas and Luna dive into a specific case: a Midwest-based quick-service franchise facing a class-action from franchisees who claim the mediation clause was used to bury legitimate disputes. Lucas walks through the typical mediation-fee split—often 50-50 but with the franchisor controlling the mediator pool—and cites data showing that over 70% of franchisees who enter mediation never litigate afterward. Luna brings a 2025 study from the American Arbitration…
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