Can an All County franchisee agree to conduct arbitration outside of their state at the time of arbitration?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
- (f) A provision requiring that arbitration or litigation be conducted outside this state. This shall not preclude the franchisee from entering into an agreement, at the time of arbitration, to conduct arbitration at a location outside this state.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, a franchisee is not initially required to conduct arbitration or litigation outside of their state. However, the FDD states that an All County franchisee can enter into an agreement to conduct arbitration at a location outside of their state at the time of arbitration.
This means that while the initial franchise agreement cannot force a franchisee to arbitrate out-of-state, the franchisee can later agree to do so if a dispute arises. This provides some flexibility, as the franchisee isn't locked into an out-of-state arbitration venue from the start but can still agree to it if it seems beneficial at the time of the dispute.
It is important for prospective All County franchisees to understand this provision, as agreeing to out-of-state arbitration could potentially increase costs and inconvenience if a dispute arises. Franchisees should carefully consider the implications before agreeing to such a change at the time of arbitration.