What is the location of the American Arbitration Association office where arbitration will occur for All County franchisees?
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, if a franchisee is required to engage in binding arbitration, it will occur at the American Arbitration Association (AAA) office that is nearest to All County's principal business address. The costs associated with the arbitration will be determined by the arbitrator. This information is specifically noted in the addendum for the state of California.
This means that franchisees outside of California may have different arbitration terms based on their state's laws. It is important to note that the application of laws, such as those in California, may affect certain provisions in the franchise agreement, including those related to termination, transfer, non-renewal, non-compete covenants, and the requirement to sign a general release.
Prospective All County franchisees should seek legal counsel to understand how California and federal laws might apply to any part of the franchise agreement that restricts venue to a location outside of California. This is particularly important because the franchise agreement requires the application of Florida laws, which may not be enforceable under California law.