Where can a judgment be entered upon the arbitration award for an Alloy dispute?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
The arbitrator must have at least 5 years of significant experience in franchise law. A judgment may be entered upon the arbitration award by any state or federal court in the state where we maintain our headquarters or the state where your Facility is located. The decision of the arbitrator will be final and binding on all parties to the dispute; however, the arbitrator may not under any circumstances: (1) stay the effectiveness of any pending termination of this Agreement; (2) assess punitive or exemplary damages; or (3) make any award which extends, modifies or suspends any lawful term of this Agreement or any reasonable standard of business performance that we set.
This arbitration provision is self-executing. Specifically, the arbitration may proceed, and the arbitrator has jurisdiction, regardless of whether any party fails to actively participate or appear. In the event that any party fails without good cause (i) to appear at any properly noticed arbitration proceeding; or (ii) to make payment in full of its share of the required arbitration fees and costs within ten (10) days after notice and demand, absent a previously issued court order to the contrary, then the arbitrator or the organization/entity administering the arbitration shall be authorized to enter a final award against such party in the nature of a default judgment or otherwise, notwithstanding the failure to appear or to make the required payment.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, a judgment upon the arbitration award may be entered by any state or federal court in the state where Alloy maintains its headquarters or the state where the franchisee's facility is located. This means that if a dispute arises and goes to arbitration, the resulting decision can be legally enforced through the court system in either of those two locations.
This provision offers some flexibility for Alloy franchisees. Depending on the circumstances of the dispute, it may be more convenient or advantageous to have the judgment entered in the state where their facility is located rather than Alloy's headquarters. This could be due to factors such as familiarity with local laws, proximity to witnesses or evidence, or simply the ease of navigating the legal system in their own state.
It's important to note that the arbitrator in an Alloy dispute must have at least 5 years of significant experience in franchise law. The arbitration must take place in the city of Alloy's then-current headquarters. The arbitrator's decision is final and binding, but they cannot stay the effectiveness of any pending termination of the Franchise Agreement, assess punitive or exemplary damages, or make any award that extends, modifies, or suspends any lawful term of the agreement or any reasonable standard of business performance that Alloy sets.
This arbitration provision is self-executing, meaning that the arbitration can proceed even if a party fails to participate or appear. If a party fails to appear at any properly noticed arbitration proceeding or fails to pay its share of the required arbitration fees and costs within ten days after notice and demand, the arbitrator or the administering organization can enter a final award against that party in the nature of a default judgment.