Where will arbitration occur for All County franchisees, and who determines the cost allocation?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The Franchise Agreement requires binding arbitration. The arbitration will occur in the office of the American Arbitration Association that is nearest to our principal business address with the costs being borne as determined by the arbitrator. Prospective franchisees are encouraged to consult private legal counsel to determine the applicability of California and federal laws (such as Business and Professions Code Section 20040.5, Code of Civil Procedure Section 1281, and the Federal Arbitration Act) to any provisions of a franchise agreement restricting venue to a forum outside the State of California.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, the location for arbitration is the office of the American Arbitration Association nearest to All County's principal business address. The arbitrator will determine how the costs of arbitration are allocated between the parties.
This means that if a dispute arises between an All County franchisee and the company that cannot be resolved through other means, the parties will have to submit to binding arbitration. The arbitration will take place at the American Arbitration Association office closest to All County's headquarters, which may or may not be convenient for the franchisee, depending on their location.
The fact that the arbitrator determines the cost allocation is also significant. It means that the franchisee could be responsible for paying a portion or even all of the arbitration costs, depending on the arbitrator's decision. Prospective franchisees should consider these potential costs when evaluating the All County franchise opportunity and consult with legal counsel to understand the implications of the arbitration clause.