What is the 'Internal Dispute Resolution Deadline' for Anago, in terms of days after submission of all reasonably requested information?
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, if a dispute arises and a party intends to initiate arbitration, the receiving party has 30 days to request additional information to help resolve the issue. Following the submission of all reasonably requested information, Anago and the subfranchisor will then make a commercially reasonable effort to resolve the dispute internally within 60 days. This 60-day period is referred to as the "Internal Dispute Resolution Deadline." However, this deadline can be extended if both parties mutually agree to do so.
This internal dispute resolution process is a preliminary step before potentially entering into binding arbitration. If the dispute is not resolved within the 60-day timeframe (or any agreed-upon extension), either party can demand that the matter be submitted to binding arbitration through the American Arbitration Association. The arbitration proceedings will be conducted by a single arbitrator in a location chosen by the arbitrator, ideally within 50 miles of Anago's principal place of business, which is currently Pompano Beach, Florida.
This clause highlights Anago's commitment to attempting to resolve disputes amicably before resorting to arbitration, which can be a costly and time-consuming process. For a prospective franchisee, this means that there is an opportunity to address concerns and seek resolution through internal channels before facing the more formal and potentially adversarial process of arbitration. It is important to understand the specific steps and timelines involved in this internal dispute resolution process, as well as the conditions under which arbitration may be initiated.