90 Franchisees Ordered To Individually Arbitrate Discrimination, RICO Claims

Mealey's (April 13, 2021, 12:23 PM EDT) -- ALLENTOWN, Pa. — A Pennsylvania federal judge on March 19 granted a hotel franchisor’s motion to compel arbitration, ruling that arbitration clauses in its franchise agreements with 90 franchisees are valid and enforceable, ordering individual arbitration on the franchisees’ allegations that the franchisor discriminated against Indian-American and South-Asian American franchisees and violated the Racketeer Influenced and Corrupt Organizations Act (RICO) with a $61.4 million kickback scheme....