Where must an All States M.E.D. franchisee bring any claim against the franchisor, including its employees and agents, that relates to the franchise agreement?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
"You agree to bring any claim against us, including our present and former employees, agents, and affiliates, which in any way relates to or arises out of this Agreement, or any of the dealings of the parties hereto, solely in arbitration before the American Arbitration Association."
Source: Item 23 — RECEIPTS (FDD pages 44–174)
What This Means (2024 FDD)
According to All States M.E.D.'s 2024 Franchise Disclosure Document, any claim against All States M.E.D., including its employees, agents, and affiliates, that relates to the franchise agreement must be settled through arbitration before the American Arbitration Association.
However, this requirement may not be enforceable in all jurisdictions. For example, the FDD notes that this provision may not be enforceable under California law. Additionally, Item 17(u) of the Disclosure Document is modified for North Dakota franchisees, stating that the site of mediation and arbitration must be agreeable to all parties and not remote from the franchisee's place of business.
Prospective franchisees should be aware of these dispute resolution terms and consult with legal counsel to understand their rights and obligations under the franchise agreement and the laws of their specific state.