For Afuri Ramen Dumpling, what happens if the parties are unable to resolve a dispute by mediation?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
- 9.8.2 Binding Arbitration.
If the parties are unable to resolve a dispute by mediation as provided above, then any and all disputes, claims or matters involving you (or your officers, directors, or owners) and us (or our officers, directors, or owners) are subject to binding arbitration except for disputes, claims or matters based on: (1) the United States Trademark Act of 1946 (Lanham Act, 15 U.S.C.
Sections 1051, et seq.) or (2) collection of delinquent payments.
The following provisions will apply to such arbitration:
- A.
Arbitration will be administered by Arbitration Service of Portland, Inc. in accordance with its commercial arbitration rules, and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof.
Arbitration will be before a single arbitrator.
The arbitrator will be required to have at least five years of experience in franchise law.
- B.
The arbitrator will have power and jurisdiction to decide the controversy or dispute solely according to the express provisions of this Agreement.
The arbitrator may not alter, amend, delete, or add to the provisions of this Agreement by implication or otherwise.
In any arbitration the parties will be entitled to injunctive relief or specific performance of the obligations of the other.
The arbitrator will determine the prevailing party for purposes of the subsection entitled "Attorneys' Fees" below and may make a percentage award of reimbursable fees and expenses.
- C.
The provisions of this Section entitled "Binding Arbitration" will be construed as independent of any other covenant or provision of this Agreement; provided that if a court of competent jurisdiction determines that any of the provisions are unlawful in any way, the court will modify or interpret the provisions to the minimum extent necessary to have them comply with the law.
Notwithstanding any provision of this Agreement relating to the laws under which this Agreement will be governed by and construed under, all issues relating to its appropriateness for arbitration or the enforcement of the agreement to arbitrate contained in this Agreement will be governed by the Federal Arbitration Act (9 U.S.C. §
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, if mediation fails to resolve a dispute, the matter will be settled through binding arbitration. This arbitration process applies to all disputes, claims, or matters involving the franchisee (or their officers, directors, or owners) and Afuri Ramen Dumpling (or its officers, directors, or owners). However, there are two exceptions: disputes related to the United States Trademark Act of 1946 (Lanham Act) and actions to collect delinquent payments are not subject to binding arbitration.
The arbitration will be managed by Arbitration Service of Portland, Inc., following its commercial arbitration rules. A single arbitrator with at least five years of experience in franchise law will preside over the proceedings. The arbitrator's authority is limited to interpreting and applying the express provisions of the franchise agreement, without the power to alter, amend, or add to these provisions. Injunctive relief or specific performance can be sought during arbitration.
The arbitration agreement is governed by the Federal Arbitration Act, ensuring its enforceability. The arbitrator will determine the prevailing party, who will be entitled to recover arbitration, proceeding, and court costs, including reasonable attorneys' fees. This allocation of costs and fees can significantly impact the financial outcome of a dispute, making it crucial for franchisees to understand their rights and obligations under the agreement. The franchisee should consult with a legal professional to fully understand the implications of the arbitration clause.