What law governs arbitration related to the All County franchise agreement?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
- 25.13. Governing Law. All matters relating to arbitration will be governed by the FEDERAL ARBITRATION ACT (9 U.S.C. §§ 1 et. seq.).
Except to the extent governed by the Federal Arbitration Act as required hereby, the UNITED STATES TRADEMARK ACT OF 1946 (LANHAM ACT, 15 U.S.C. §§ 1051 et seq.) or other federal law, this Agreement, the Franchise and all claims arising from the relationship between us and you will be governed by the laws of Florida, without regard to its conflict of laws principles, except that any law regulating the sale of franchises or governing the relationship of a franchisor and its franchisee will not apply unless jurisdictional requirements are met independently without reference to this Article.
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 31–34)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, the Federal Arbitration Act (9 U.S.C. §§ 1 et. seq.) governs all matters relating to arbitration. This means that any arbitration proceedings related to the All County franchise agreement will be conducted in accordance with the rules and regulations set forth in this federal law.
This is a fairly standard practice in franchising, as the Federal Arbitration Act is often used to govern arbitration proceedings to ensure consistency and enforceability across state lines. However, the FDD also states that, except to the extent governed by the Federal Arbitration Act, the laws of Florida will govern the agreement, the franchise, and all claims arising from the relationship between All County and the franchisee. An exception to this is that any law regulating the sale of franchises or governing the relationship of a franchisor and its franchisee will not apply unless jurisdictional requirements are met independently.
For a prospective All County franchisee, this means that while the franchise agreement specifies that disputes will be resolved through arbitration governed by federal law, it's important to understand how this interacts with state laws, particularly those related to franchising. Franchisees should seek legal counsel to fully understand their rights and obligations under both federal and Florida law, as well as any state-specific regulations that may apply to their franchise agreement.