Bhavsar

This matter was commenced as an unlawful detainer in the trial court. Based upon certain provisions in a franchise agreement calling for arbitration where a “controversy or claim” arose, defendant moved for an order compelling arbitration. The trial court denied the request and defendant now appeals.

Facts

Plaintiff and defendant have entered a license agreement for the sales of plaintiff’s food products. Plaintiff has also subleased the location of the restaurant in Rialto, California. The license agreement or franchise agreement is a separate document from the sublease although the license agreement is incorporated into the sublease by reference. The sublease provides in part that if the license agreement is terminated, the plaintiff has the option of terminating the sublease.

In the license agreement, there is an arbitration clause which provides that controversies “relating to this Agreement, or any breach thereof’ must be arbitrated. Plaintiff is permitted to go to court to apply for a writ of possession, but only “with respect to [defendant’s] default in the payment of money.”

On December 23, 1986, defendant received a letter from plaintiff notifying him he was…