Franchising is an important tool in the production, distribution and sale of services and goods. The present article aims at analyzing the main characteristics of franchise agreements, its classifications and practical repercussions. First, the different formats of franchise and arrangements by which it may be carried out will be presented in order to properly contextualize the analyzed subject. Next, the main new aspects of the legal framework which was applied to the franchise system for over two decades will be examined, with particular focus on choice of law, forum and arbitration. Once the most important foundations of the franchising system have been discussed, the case law concerning the use of arbitration as an alternative dispute resolution method will be addressed in the context of franchise agreements. Lastly, it will be possible to conclude that the new law ratifies the regularity of the use of arbitration in franchise-related subjects, removes unnecessary discussions before the judicial courts being, therefore, supportive to new deals.
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