Where will arbitration take place for disputes related to the Afuri Ramen Dumpling agreement?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
From time to time there may be controversy about this Agreement, its interpretation, or performance or breach by the parties.
If a dispute arises between the parties, it will be resolved by arbitration before a single arbitrator selected under the Commercial Dispute process and rules of the American Arbitration Association and its supplementary procedures for international commercial arbitration (or its successor).
The arbitration will be conducted in the English language and will take place at the American Arbitration Association office closest to Franchisor's headquarters (currently Portland, Oregon, USA).
The decision of the arbitrator made within its power or jurisdiction will be final and binding.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, any disputes arising from the franchise agreement will be resolved through arbitration. Specifically, the arbitration will be conducted under the Commercial Dispute process and rules of the American Arbitration Association (AAA). The location for the arbitration will be at the American Arbitration Association office closest to Afuri Ramen Dumpling's headquarters, which is currently in Portland, Oregon, USA. The arbitration proceedings will be conducted in English.
This means that if a franchisee has a dispute with Afuri Ramen Dumpling, they will need to travel to Portland, Oregon, or a location nearby to participate in the arbitration process. This could involve significant travel costs and time away from their business. The decision made by the arbitrator will be final and binding, and it can be entered as a judgment in any court of law that has jurisdiction.
It is typical in franchising for the arbitration location to be near the franchisor's headquarters. This clause ensures that Afuri Ramen Dumpling does not have to travel to different locations to resolve disputes with franchisees, but it may create a financial burden for franchisees who do not live near Portland, Oregon. Prospective franchisees should consider these potential costs when evaluating the Afuri Ramen Dumpling franchise opportunity.