Where will arbitration take place for disputes related to the Amorino franchise agreement?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
| Dispute u. | Section 22 of | In the event of any dispute arising out of or in connection with |
|---|---|---|
| resolution by | the Franchise | the franchise agreement or the relationship of the parties, |
| arbitration or | Agreement | including without limitation any claim related to termination or |
| mediation | expiration of the franchise agreement and any claim for damages and/or compensation related thereto, the parties agree to submit the matter to mediation under the American Arbitration Association Commercial Mediation Rules. If the mediation is not successful, any controversy, claim, cause of action or dispute arising out of, or relating to any of your stores or the franchise agreement, including, but not limited to (i) any claim by you, or any person in privity with or claiming through, on behalf of or in the right of you, concerning the entry into, performance under, or termination of, the franchise agreement or any other agreement entered into by us, or our subsidiaries or affiliates, and you, (ii) any claim against a past or present employee, officer, director or agent of us, (iii) any claim of breach of the franchise agreement, and (iv) any claims arising under state or federal laws, shall be submitted to final and binding arbitration as the sole and exclusive remedy for any such controversy or dispute. | |
| Choice | Section 22 of | Subject to applicable state law, except for our right to obtain |
| v. | ||
| of forum | the franchise | injunctive relief in any appropriate jurisdiction, any dispute |
| agreement | arising out of the franchise agreement or our relationship shall first be submitted to mediation, and if it is not resolved in mediation, then it shall be submitted to arbitration, under the rules of the American Arbitration Association, to take |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 55–67)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, disputes arising from the franchise agreement will first undergo mediation. If mediation is unsuccessful, the dispute will then proceed to arbitration. The location for this arbitration is New York County, New York. This is subject to applicable state law, and Amorino retains the right to seek injunctive relief in any appropriate jurisdiction regardless of the arbitration proceedings.
This means that if a franchisee has a dispute with Amorino, such as a disagreement over the terms of the franchise agreement or its termination, the franchisee will likely need to travel to New York County, New York for the arbitration. This could involve significant travel expenses and legal fees, especially if the franchisee is located far from New York.
It is important to note that Amorino can seek injunctive relief in any jurisdiction, which means they could potentially file a lawsuit against a franchisee in a location that is more convenient for Amorino, regardless of the arbitration agreement. Franchisees should consider these factors when evaluating the potential costs and risks associated with investing in an Amorino franchise.
Choice of forum clauses are common in franchise agreements, but the specific location can vary. Some franchisors may choose their headquarters location, while others may opt for a neutral site. Franchisees should carefully review the choice of forum clause in any franchise agreement and consider the potential implications before signing.