Where will arbitration proceedings be conducted for Bang Cookies franchise disputes?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
Any dispute between the parties relating to this Agreement shall be brought in accordance with the dispute resolution procedures set forth in the Franchise Agreement. Notwithstanding the foregoing, if any of the dispute resolution procedures set forth in the Franchise Agreement conflict with any of the terms of this Agreement, the terms of this Agreement shall prevail. Without limitation to the foregoing, you agree that:
(a) Arbitration – Except, at our option, as to any claims or disputes related to or concerning a breach of this Agreement by you that may entitle us to the award of injunctive relief, you agree that any and all disputes, controversies, and claims, arising from and/or related to this Agreement, shall be submitted to the American Arbitration Association ("AAA") for binding arbitration. Arbitration shall be conducted by one arbitrator in accordance with the AAA's then current rules for commercial disputes, except as may be otherwise required in this Agreement. All arbitration proceedings shall be conducted in Bergen County, New Jersey or, if suitable AAA facilities are not available in Bergen County, New Jersey then at a suitable AAA location selected by the arbitrator that is located closest to Bergen County, New Jersey.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, the location of arbitration proceedings depends on the location of the franchise and the specific agreement in place. Generally, arbitration will be conducted in Bergen County, New Jersey. However, there are exceptions for franchisees in Washington and Illinois.
For a Bang Cookies franchise purchased in Washington, the arbitration site must be in the State of Washington, or in a place mutually agreed upon at the time of the arbitration, or as determined by the arbitrator. This amendment acknowledges the Washington State Franchise Investment Protection Act, Chapter 19.100 RCW, and aims to protect the franchisee's rights under Washington law.
For franchisees in Illinois, the Illinois Franchise Disclosure Act states that any provision in a Franchise Agreement that designates jurisdiction or venue outside the State of Illinois is void. However, a Franchise Agreement may provide for arbitration in a venue outside Illinois. This means that while Illinois law governs the agreements, arbitration can still occur outside of Illinois, potentially in Bergen County, New Jersey, as specified in the standard agreement.
Therefore, a prospective Bang Cookies franchisee should carefully review the specific franchise agreement and any state-specific amendments to understand where arbitration proceedings will be conducted. It is essential to consider the laws of the state where the franchise is located, as these laws may impact the enforceability of certain provisions in the franchise agreement.