Where will arbitration occur for Alloy franchise disputes, and who bears the costs?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
The arbitration must take place in the city of our then-current headquarters.
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- The franchise agreement requires binding arbitration. The arbitration will occur at Indianapolis, Indiana with the costs being borne by the non-prevailing party.
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- Site of Arbitration, Mediation, and/or Litigation. In any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the location for arbitration and responsibility for costs depend on the franchisee's location. For franchisees not in California or Washington, arbitration must occur in the city of Alloy's then-current headquarters. The FDD does not specify who bears the costs in this situation.
However, for franchisees subject to the California Franchise Investment Act, the arbitration will occur in Indianapolis, Indiana, and the non-prevailing party bears the costs. This means that if the franchisee loses the arbitration case, they will be responsible for covering the arbitration expenses.
For franchisees in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation. The FDD does not specify who bears the costs in this situation. Prospective franchisees should clarify with Alloy where arbitration would occur and who would bear the costs, based on their specific location and circumstances.