The U.S. Court of Appeals in Boston found that a group of
janitorial business owners, who became franchisees as transferees
of franchise agreements, had adequate notice of the arbitration
provisions contained in those agreements prior to their transfer.
Thus, the court ruled that the franchisees were required to
arbitrate their myriad claims against the franchisor.
The transfer agreements executed by the franchisees incorporated
the arbitration clauses by reference, and each of the franchisees
had guaranteed the performance of "all responsibilities,
duties, indebtedness and obligations of the [previous [f]ranchisee]
under the [Franchise] Agreement." While the franchisees argued
that it would be unconscionable to bind them to arbitration clauses
that they never saw, the court noted that Massachusetts law does
not impose a heightened notice requirement for arbitration
agreements. Furthermore, the court held, the Federal Arbitration
Act would preempt any such notice
