Where will any meeting, mediation, or arbitration involving 1 800 Packouts be conducted?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
- a. Any meeting, mediation, or arbitration will be conducted exclusively at a neutral location within 15 miles of our then-current headquarters without regard to conflict of law provisions or forum non-conveniens demand to the contrary.
- b. The arbitrator will apply all applicable laws and equity permitted under the laws of the state of Utah, without regard to conflicts of law provisions. Any dispute requiring resolution before a court shall be brought in the appropriate state or federal court situated in Utah County, Utah, or the most proximate thereto, with the parties hereby irrevocably consenting to the exclusive jurisdiction and venue therein.
- c. The terms of this Section and the terms of this Article generally are mandatory and not permissive and will control any matters of jurisdiction, venue, and choice of law; and by initialing below, you and we have agreed to the mandatory terms of this Article generally and to the mandatory terms of this Section specifically.
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, any meeting, mediation, or arbitration will be conducted at a neutral location within 15 miles of 1 800 Packouts's headquarters. The document specifies that this location will be chosen without regard to conflict of law provisions or forum non-conveniens demand. As of the FDD date, 1 800 Packouts's principal place of business is located at 761 W. 1200 N., Ste 300, Springville, Utah 84663. Therefore, all such proceedings will occur within a 15-mile radius of this address.
This requirement has significant implications for prospective franchisees, particularly those located far from Springville, Utah. Franchisees must be prepared to travel to the designated location for any dispute resolution processes, which could involve substantial travel expenses and time. The FDD also states that the arbitrator will apply the laws of the state of Utah, without regard to conflicts of law provisions. Any dispute requiring resolution before a court shall be brought in the appropriate state or federal court situated in Utah County, Utah, or the most proximate thereto, with the parties irrevocably consenting to the exclusive jurisdiction and venue therein.
The FDD emphasizes that these terms regarding jurisdiction, venue, and choice of law are mandatory and not permissive. This means that franchisees cannot negotiate to have disputes resolved in their home state or under different legal standards. By initialing the agreement, both 1 800 Packouts and the franchisee agree to these mandatory terms, ensuring that all legal proceedings will adhere to the specified location and legal framework.
Prospective franchisees should carefully consider the implications of this venue and jurisdiction clause, especially if they anticipate potential disputes with 1 800 Packouts. Understanding the costs and logistical challenges associated with resolving disputes in Utah is crucial for making an informed investment decision. Franchisees should also be aware that they are waiving their rights to a court or jury trial and instead selecting face-to-face meetings, mediation, and finally binding arbitration as the sole means to resolve disputes.