Under what authority must arbitration be submitted for Alloy disputes?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
hird parties. If a court determines that this limitation on joinder of or class action certification of claims is unenforceable, then this entire commitment to arbitrate will become null and void and the parties must submit all claims to the jurisdiction of the courts. The arbitration must take place in the county where our headquarters are then located (currently, Roswell, Georgia, or such other place as we mutually agree. The arbitrator must follow the law and not disregard the terms of this Agreement. 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 court of competent jurisdiction. The decision of the arbitrator will be final and binding on all parties to the dispute; however, the arbitrator may not under any circumstances: (i) stay the effectiveness of any pending termination of this Agreement; (ii) assess punitive or exemplary damages; or (iii) make any award which extends, modifies or suspends any lawful term of this Agreement or any reasonable standard of business performance that we set.
Before any party may bring an action in court or against the other, or commence an arbitration proceeding (except as noted below), the parties must first meet to mediate the dispute. Specifically, no litigation or arbitration action may be commenced until the earlier of thirty (30) days from written notice by one party to the other of a request to initiate mediation, or the mutual agreement by both parties that mediation has been unsuccessful if the notified party fails to respond to the requesting party within thirty (30) days of notification. The mediation will be held in the county where our headquarters are then located (currently, Roswell, Georgia). Any such mediation will be non-binding and conducted by the American Arbitration Association in accordance with its then-current rules for mediation of commercial disputes. Prior to the mediation, each party involved in the mediation must sign the standard confidentiality agreement designated by us or the
mediator. The mediator will be disqualified as a witness, expert or counsel for any party with respect to the dispute or any related matter. Mediation is a compromise negotiation and will constitute privileged communications under the law governing this Agreement. The entire mediation process will be confidential and the conduct, statements, promises, offers, views and opinions of the mediator and the parties will not be discoverable or admissible in any legal proceeding for any purposes; provided, however, that evidence which is otherwise discoverable or admissible will not be excluded from discovery or admission as a result of its use in the mediation. The parties will share equally all fees and expenses of the mediator.
Nothing in this Agreement bars either party's right to obtain injunctive relief against threatened conduct that will cause loss or damages to the other party, under the usual equity rules, including the applicable rules for obtaining restraining orders and preliminary injunctions. Furthermore, we and our affiliates have the right to commence a civil action against you or take other appropriate action for the following reasons: to collect sums of money due to us; to compel your compliance with trademark standards and requirements to protect the goodwill of the Trademarks;
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, before any party can initiate a court action or arbitration, they must first attempt to mediate the dispute. The mediation will occur in the county where Alloy's headquarters is located, which is currently Roswell, Georgia. This mediation will be non-binding and conducted by the American Arbitration Association, following its rules for commercial disputes. Both parties must sign a confidentiality agreement, and the mediator cannot act as a witness or counsel in any related matter.
The arbitration itself must take place in the county where Alloy's headquarters is located, unless both parties agree to another location. The arbitrator is required to follow the law and the terms of the Franchise Agreement, possessing at least five years of experience in franchise law. A judgment can be entered based on the arbitrator's award by any court with jurisdiction.
The arbitrator's decision is final and binding, but they cannot stay a pending termination of the agreement, award punitive damages, or modify any lawful term of the agreement or Alloy's business performance standards. The arbitration provision is self-executing, meaning it can proceed regardless of a party's participation. Failure to participate or pay arbitration fees may result in a default judgment against the non-compliant party. Any arbitration must be on an individual basis, without class action claims or consolidation with other claims involving third parties, and if this limitation is deemed unenforceable by a court, the entire arbitration agreement becomes void, requiring all claims to be submitted to the courts.