What is the geographic radius from Anago's principal place of business within which arbitration proceedings will be conducted?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
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 between Anago and a subfranchisor will occur 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.
This means that any disputes that go to arbitration will be held in 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 is not located near Pompano Beach.
It is typical in franchising for the franchisor to specify a location for arbitration that is convenient for them, but a 50-mile radius provides some flexibility in selecting a suitable venue. Prospective Anago subfranchisees should factor in potential travel expenses when evaluating the franchise opportunity.