The appellate court affirmed the trial court’s ruling that no agreement to arbitrate existed. Massage Envy argued that the customer had used an electronic tablet to check in at the location, and that the agreement was available to her via hyperlink in one of the various acknowledgements during the check-in process. This, Massage Envy argued, constituted a valid and enforceable “clickwrap” agreement in which customers simply click “I agree” to a list of terms and conditions. The court rejected this argument, holding that the customer lacked reasonable notice of the terms of the agreement or even that she might be entering into any agreement at all with Massage Envy, because of the inconspicuous nature of the terms. Moreover, the majority of the check-in forms indicated that she was receiving services from a franchisee of Massage Envy, and that Massage Envy was not providing services. She thus had no reason to expect that checking in for her massage at a franchised location would involve her entering into any ongoing contractual relationship of any sort with Massage Envy.
Eli Bensignor dedicates his practice to franchise, distribution, and licensing matters. He counsels emerging and seasoned franchisors across the U.S. on day-to-day matters, including analyzing and drafting agreements and ...
Kevin is a Franchise & Distribution Associate who assists clients in asset acquisitions and dispositions, commercial contracts and franchise matters.
Prior to joining Lathrop GPM, Kevin was a transactional attorney, where he ...
The information contained in this post is provided to alert you to legal developments and should not be considered legal advice. It is not intended to and does not create an attorney-client relationship. Specific questions about how this information affects your particular situation should be addressed to one of the individuals listed. No representations or warranties are made with respect to this information, including, without limitation, as to its completeness, timeliness, or accuracy, and Lathrop GPM shall not be liable for any decision made in connection with the information. The choice of a lawyer is an important decision and should not be based solely on advertisements.
About this Publication
The Franchise Memorandum is a collection of postings on summaries of recent legal developments of interest to franchisors brought to you by Lathrop GPM LLP.
To subscribe to monthly emails for The Franchise Memorandum, please click here.