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The Franchise Memorandum

Missouri Federal Court Upholds Contractual Agreement to Waive Jury
Posted in Contracts

A franchisee since the 1970s who had owned 21 Hardee’s stores lost on its attempt to evade the jury trial waiver in its franchise renewal agreement. Hardee’s Food Sys., Inc. v. Hallbeck, 2010 U.S. Dist. LEXIS 114192 (E.D. Mo. Oct. 27, 2010). Jury trial waivers “are valid under federal law,” the court held. In this recent decision, the court also found significant that the jury waiver appeared twice in the agreement, including once in bold type.  Under these facts, the court found the waiver was made knowingly and voluntarily. The case will go forward sans jury.

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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. 

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