How is Section 21.F of the 7 Brew Franchise Agreement amended regarding the location of arbitration proceedings?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
ARBITRATION. 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 the 2025 FDD, Section 21.F of the 7 Brew Franchise Agreement, which pertains to arbitration, is amended regarding the location where arbitration proceedings will take place. The standard location for arbitration proceedings, including hearings, is set within ten miles of 7 Brew's principal business address (or the current franchisor's address in case of a transfer) when the arbitration demand is submitted.
However, this is subject to 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, arbitration proceedings must be held at a location agreed upon by both 7 Brew and the franchisee. This amendment ensures compliance with North Dakota law, which may have specific requirements regarding the location of arbitration to protect franchisees.
This modification provides an added layer of protection for 7 Brew franchisees in North Dakota, ensuring that arbitration proceedings are not conducted in a location that would create an undue burden for the franchisee. Prospective franchisees should be aware of this clause, especially if they plan to operate in North Dakota, as it could significantly impact the cost and convenience of resolving disputes through arbitration.