This critical incident describes two legal dilemmas faced by a business format franchise system. Included in Newsweek/Statista Inc.'s list of America's Favorite Restaurant Chains for 2023, Clean Juice, LLC was “the nation's first and only USDA-certified organic juice and food bar franchise”. Shockingly, within the next few months, the 132-unit franchise system was floundering, with numerous franchisees filing a demand for arbitration following bankruptcies, evictions, and profit losses. In addition, Clean Juice asserted two former franchisees had stolen its business concept. On April 30, 2024, Brix Holdings announced it would acquire the struggling franchise system. The Brix CEO must now deal with the arbitration proceedings. Students are asked to decide what outcomes Clean Juice should pursue in the arbitration proceedings.

Experience level
Intermediate
Intended Audience
Faculty
Session Time Slot(s)
Time
- (1:30pm)
Authors

Joyce A. Young, Indiana State University

Chia-An Chao, Indiana State University

Terry Daugherty, Indiana State University