Who determines how the costs of arbitration are borne in All County disputes?
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.
FRANCHISE DISCLOSURE DOCUMENT FOR 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, in California, if a dispute goes to binding arbitration, the arbitrator will determine how the costs are borne. The arbitration itself will occur at the American Arbitration Association office nearest to All County's principal business address.
This is particularly relevant for prospective franchisees in California, as the FDD explicitly mentions that the franchise agreement requires binding arbitration. It also advises consulting with legal counsel to understand how California and federal laws might apply to provisions that restrict the venue to a location outside of California.
It is important to note that the FDD highlights that the franchise agreement requires the application of Florida law, but this provision may not be enforceable under California law. This could have implications for how disputes are resolved and where arbitration takes place.