How are disputes resolved with Auntie Annes?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| u. Dispute resolution by | FA: 19.1 | Most disputes must be resolved by arbitration. |
| arbitration or mediation | ||
| v. Choice of forum | FA: 19.1 | Subject to state law, currently, arbitration or lawsuit must be in the metropolitan area of district court where our principal place of business is located (currently, Georgia). |
| w. Choice of law | FA: 15.6 and 22.5 | Subject to state law, Georgia law applies to all disputes except those related to the non-competition covenants, which will be governed by the laws of the state in which your Shop is located. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTIONS (FDD pages 86–91)
What This Means (2024 FDD)
According to Auntie Anne's 2024 Franchise Disclosure Document, most disputes must be resolved through arbitration. The FDD indicates that any arbitration or lawsuit must occur in the metropolitan area of the district court where Auntie Anne's principal place of business is located, which is currently in Georgia, although this is subject to state law.
Furthermore, the Franchise Agreement specifies that Georgia law governs all disputes, except those related to non-competition covenants. Disputes regarding non-competition covenants are subject to the laws of the state in which the Auntie Anne's shop is located.
This means that franchisees may be required to travel to Georgia for arbitration or lawsuits, which could increase costs. The application of Georgia law could also impact the interpretation and enforcement of the franchise agreement, depending on how it compares to the laws in the franchisee's state. Franchisees should consult with a legal professional to understand the implications of these provisions.