Where will the arbitration proceedings be conducted for Anago disputes?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
Within thirty (30) days of receipt of the notice of intent to initiate arbitration, the receiving party may request the other party to provide additional information and documents to resolve the controversy, dispute, or claim. Franchisor and Subfranchisor will make commercially reasonable effort to resolve the controversy, dispute, or claim internally within sixty (60) days ("Internal Dispute Resolution Deadline") of submission of all information reasonably requested by the receiving party, unless the parties mutually agree to extend the Internal Dispute Resolution Deadline. If any such controversy, dispute, or claim is not resolved internally as described above then Franchisor and Subfranchisor agree that such controversy, dispute, or claim between Franchisor or Franchisor's affiliates, and Franchisor and their respective shareholders, officers, directors, agents, and employees, on the one hand, and Subfranchisor (and Subfranchisor's owners, guarantors, affiliates, and employees), on the other hand, must be submitted for binding arbitration, on demand of either party, to the American Arbitration Association. The arbitration proceedings will be conducted by one arbitrator and, except as this Section otherwise provides, according to the then-current Commercial Arbitration Rules of the American Arbitration Association. All proceedings will be conducted at a suitable location chosen by the arbitrator in or within 50 miles of Franchisor's then-current principal place of business (currently, Pompano Beach, Florida). All matters relating to arbitration will be governed by the Federal Arbitration Act (9 U.S.C. §§ 1 et seq.). Judgment upon the arbitrator's award may be entered in any court of competent jurisdiction.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, arbitration proceedings will be conducted at a location chosen by the arbitrator. This location must be in or within 50 miles of Anago's principal place of business, which is currently Pompano Beach, Florida. The arbitration will be conducted by a single arbitrator, following the American Arbitration Association's Commercial Arbitration Rules, except as otherwise specified in the relevant section. The Federal Arbitration Act governs all aspects of the arbitration process. A court of competent jurisdiction may enter judgment upon the arbitrator's award.
This means that if a dispute arises between an Anago subfranchisor and Anago, either party can demand that the dispute be resolved through binding arbitration. The location of the arbitration is limited to the Pompano Beach, Florida, area, regardless of where the subfranchisee's business is located. This could create additional travel and logistical costs for a subfranchisee who does not live near Pompano Beach.
The arbitration process will follow the rules established by the American Arbitration Association, which are designed to provide a fair and efficient way to resolve disputes outside of court. However, the arbitrator's decision is binding, meaning that the parties must accept the outcome and cannot appeal it in most cases. The arbitration is governed by the Federal Arbitration Act, which provides a legal framework for enforcing arbitration agreements.
Prospective Anago franchisees should consider the implications of the arbitration clause, including the location of the proceedings and the binding nature of the arbitrator's decision. It is advisable to consult with an attorney to fully understand the terms of the franchise agreement and the potential risks and benefits of arbitration.