Where will the arbitration proceedings for 7 Brew take place?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
The third sentence of Section 21.F of the Franchise Agreement is amended to read as follows: All proceedings, including the hearing, will be conducted at a suitable location that is within ten (10) miles of where we have our (or, in the case of a transfer by us, the then-current franchisor has its) principal business address when the arbitration demand is filed, provided, however, that to the extent required by the North Dakota Franchise Investment Law (unless such a requirement is preempted by the Federal Arbitration Act), arbitration proceedings will be held at a site to which we and you agree.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, the location of arbitration proceedings is determined by the location of 7 Brew's principal business address. Specifically, arbitration will occur within ten miles of 7 Brew's principal business address when the arbitration demand is filed. If 7 Brew transfers the franchise, the proceedings will occur within ten miles of the new franchisor's principal business address.
However, there is an exception for franchisees operating in North Dakota. To the extent required by the North Dakota Franchise Investment Law, unless preempted by the Federal Arbitration Act, the arbitration proceedings will be held at a site agreed upon by both 7 Brew and the franchisee.
This means that for most franchisees, arbitration will be local to 7 Brew's headquarters, giving 7 Brew a potential advantage. Franchisees in North Dakota may have the opportunity to negotiate a different location for arbitration, potentially making it more convenient for them. Prospective franchisees should be aware of these location-specific arbitration terms and consider the potential costs and inconveniences associated with arbitrating near 7 Brew's principal business address.