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DRUCO RESTAURANTS, INC. v. STEAK N SHAKE ENTERPRISES, INC.

Nos. 13-3489, 13-3490, 13-3491.

765 F.3d 776 (2014)

DRUCO RESTAURANTS, INC., Plaintiff-Appellee, v. STEAK N SHAKE ENTERPRISES, INC., et al., Defendants-Appellants. People Sales & Profit Company, Inc., Plaintiff-Appellee, v. Steak N Shake Enterprises, Inc., Defendant-Appellant. Scott's S & S Inc., Plaintiff-Appellee, v. Steak N Shake Enterprises, Inc., et al., Defendants-Appellants.

United States Court of Appeals, Seventh Circuit.

Decided August 29, 2014.

Attorney(s) appearing for the Case

Kristen Moder Ahmad , Greenfelder, Hemker & Gale, P.C., St. Louis, for Plaintiff-Appellee.

Fredric A. Cohen , Cheng Cohen LLC, Chicago, IL, for Defendants-Appellants.

Before ROVNER, WILLIAMS, and TINDER, Circuit Judges.

ROVNER, Circuit Judge.

At issue in this appeal is whether a franchisor may compel several of its franchisees to engage in nonbinding arbitration of diversity claims that the franchisees brought in federal court. The district court refused to stay the franchisees' lawsuits and declined to compel arbitration. We affirm.

I.

Steak n Shake owns and operates 415 eponymous restaurants that feature hamburgers and milkshakes, among other items.

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