If arbitration is demanded by either party, where will the Anago arbitration proceedings 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 will be conducted at a location chosen by the arbitrator that is in or within 50 miles of Anago's principal place of business. Currently, Anago's principal place of business is in Pompano Beach, Florida. The arbitration will be conducted by one arbitrator, following the American Arbitration Association's then-current Commercial Arbitration Rules, except as otherwise provided in the relevant section.
This means that if a dispute arises between Anago and a subfranchisor that leads to arbitration, the proceedings will take place near Anago's headquarters. This could be a significant consideration for a prospective subfranchisor, especially if they are located far from Pompano Beach, Florida, as they would need to factor in travel costs and logistical challenges.
The document also specifies that all matters relating to arbitration are governed by the Federal Arbitration Act. This provides a legal framework for the arbitration process, ensuring that it is conducted according to federal law. Judgment upon the arbitrator's award may be entered in any court of competent jurisdiction, meaning that the arbitrator's decision can be legally enforced.