What state's laws and equity will the arbitrator apply in a 1 800 Packouts dispute?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts' 2025 Franchise Disclosure Document, any arbitration will be subject to the laws and equity permitted under the laws of Utah. The FDD specifies that this will be applied without regard to conflicts of law provisions.
This means that regardless of where the franchisee is located or where the dispute arises, the arbitrator is bound to use Utah law when making their decision. This is a critical point for prospective franchisees to understand, as the laws of Utah may be more favorable to 1 800 Packouts than the laws of the franchisee's home state.
Furthermore, any legal dispute requiring resolution before a court must be brought in the appropriate state or federal court situated in Utah County, Utah. The FDD states that both parties irrevocably consent to the exclusive jurisdiction and venue in Utah. This stipulation ensures that 1 800 Packouts can manage legal challenges in a location convenient for them, potentially increasing costs and logistical challenges for franchisees who do not reside in Utah.