What law covers arbitration for All County franchises?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
| SECTION IN | ||
|---|---|---|
| FRANCHISE | ||
| PROVISION | AGREEMENT | SUMMARY |
| t. Integration/merger clause | 25.18 | Only the terms of the Franchise Agreement are |
| binding (subject to applicable state law). Any | ||
| representations or promises made outside the | ||
| Disclosure Document and Franchise | ||
| Agreement may not be enforceable. | ||
| u. Dispute resolution by arbitration or mediation | 25.12 | All disputes resolved by mediation or arbitration except for actions for declaratory or equitable relief, actions in ejectment or for possession of any interest in real or personal property, or actions which by applicable law can’t be arbitrated. This provision is subject to applicable state law. |
| v. Choice of forum | 25.14 | Applicable law is that of the State of Florida, |
| unless superseded by state law. State specific | ||
| appendices are attached to the Franchise | ||
| Agreement, and state specific addendums to | ||
| the Disclosure Document are attached as | ||
| Exhibit “D”. This provision is subject to | ||
| APPLICABLE state law. | ||
| w. Choice of law | 25.13 | Florida, except for arbitration which is |
| covered by the Federal Arbitration Act. State | ||
| specific appendices are attached to the | ||
| Franchise Agreement and state specific | ||
| addendums to the Disclosure Document are | ||
| attached as Exhibit “D”. This provision is | ||
| subject to APPLICABLE state law. |
Source: Item 19 — Financial Performance Representations (FDD pages 34–38)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, the Federal Arbitration Act covers arbitration for All County franchises. However, this provision is subject to applicable state law. This means that while the Federal Arbitration Act generally governs arbitration, state laws may also apply and could potentially supersede the federal law in certain situations.
This is a fairly standard clause in franchise agreements. Arbitration is a common method of dispute resolution, designed to be faster and less expensive than traditional litigation. However, franchisees should be aware that agreeing to arbitration typically means waiving the right to sue in court.
Prospective All County franchisees should consult with a legal professional to understand the implications of the arbitration clause and how both federal and state laws might affect their rights. It is important to understand what types of disputes are subject to arbitration and what rights a franchisee has during the arbitration process.