Where will arbitration proceedings be held for disputes involving the Apricot Lane franchise?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
All disputes between FRACHISOR and its affiliates, and their respective owners, officers, directors, agents, and employees, and FRANCHISEE (and/or its owners, guarantors, affiliates, officers, directors, agents, and employees, if applicable) arising out of or related to this Agreement or any provision of this Agreement (including the validity and scope of the arbitration obligation under this Section, which FRACHISOR and FRANCHISEE acknowledge is to be determined by an arbitrator, not a court), any other agreement between FRANCHISOR (or its affiliate) and FRANCHISEE, or any aspect of the relationship between FRANCHISOR and FRANCHISEE, will be determined exclusively by binding arbitration to be conducted by one (1) arbitrator under the then-current commercial arbitration rules of the American Arbitration Association. Arbitration proceedings must be held exclusively in the County in which the headquarters of FRACHISOR is located (which is currently Solano County, California). All matters relating to arbitration will be governed by the Federal Arbitration Act (9 U.S.C. §§ 1 et seq.). Judgment upon the award may be entered in any court of competent jurisdiction.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, arbitration proceedings for disputes between the franchisor and franchisee will be held exclusively in the county where the franchisor's headquarters is located. Currently, this is Solano County, California. This means that any franchisee, regardless of their location, would need to travel to Solano County, California, to participate in arbitration.
This requirement could create a significant cost burden for franchisees located far from California, as they would incur travel, accommodation, and potentially higher legal fees if they need to hire California-based attorneys. Franchisees should consider these potential costs when evaluating the franchise opportunity. It is also important to note that all matters relating to arbitration are governed by the Federal Arbitration Act.
It is fairly common in franchising for the arbitration location to be specified as the location of the franchisor's headquarters. This clause is generally enforceable, although some state laws, such as Washington's Franchise Investment Protection Act, may modify this provision to allow for arbitration or mediation to occur in the franchisee's state under certain circumstances.