Are disputes related to the Ancillary Agreements subject to arbitration in the Bang Cookies franchise agreement?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
- (l) Franchisee, an Owner, and/or a Spouse, as applicable and whether individually or jointly, breaches or is in default of an Ancillary Agreement, and, if the applicable agreement provides for the opportunity to cure, fails to timely cure the breach or default of the Ancillary Agreement, including, without limitation, the Franchise Owner and Spouse Agreement and Guaranty;
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
Based on the 2024 Bang Cookies Franchise Disclosure Document, whether disputes related to the Ancillary Agreements are subject to arbitration is not explicitly stated. However, the document does state that franchisees can be in default of the franchise agreement if they breach an ancillary agreement.
Item 23 references the Washington State Franchise Investment Protection Act, which could impact arbitration proceedings for franchises purchased in Washington. Specifically, the arbitration site must be in Washington or a mutually agreed-upon location. Additionally, the Illinois Franchise and Development Agreement Amendment states that Illinois law governs the agreements between the parties and that a Franchise Agreement may provide for arbitration in a venue outside Illinois.
Because the FDD does not directly address whether disputes related to the Ancillary Agreements are subject to arbitration, prospective franchisees should seek clarification from Bang Cookies regarding the specific dispute resolution mechanisms applicable to these agreements. Understanding the full scope of dispute resolution options, including arbitration, is crucial for making an informed investment decision.