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ARTICLE · 24 JULY 2024

Non-Signatory Bound To An Agreement's Arbitration Clause

In Ice Rak, LLC v. Rita's Franchise Co., LLC, the Court enforced an arbitration agreement against a non-signatory of the same agreement because courts will consider the significance...

United StatesLitigation, Mediation & Arbitration

In Ice Rak, LLC v. Rita's Franchise Co., LLC, the Court enforced an arbitration agreement against a non-signatory of the same agreement because courts will consider the significance of the franchisees' actions and representations regarding their relationship with the franchisor prior to the dispute.

Regina Tullio and Ramil Kaminsky entered into a franchise agreement with Rita's Franchise Company, LLC ("RFC") on July 31, 2020, to open a Rita's frozen dessert shop in Florida. The agreement included a mandatory arbitration clause. Shortly after the agreement was signed, Tullio and Kaminski incorporated Ice Rak, LLC and served as its managers and sole members. On May 2, 2021, Ice Rak found a location for the Rita's shop and signed a lease agreement. Tullio and Kaminsky personally guaranteed the lease. That day, RFC, Ice Rak, and Ice Rak's landlord signed a lease rider stating that the location would "only be used . . . for the operation of a Rita's shop," and listed

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