Where must disputes related to the Bang Cookies Multi-Unit Development Agreement be submitted for mediation and arbitration?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
| s. | Modification of the agreement | 18.L. | Requires writing signed by you and us, except for unilateral changes that we may make to the Manuals or our unilateral reduction of the scope of a restrictive covenant that we may make in our discretion. |
|---|---|---|---|
| t. | Integration/merger clauses | 18.M. | Only the terms of the Franchise Agreement and schedules to the Franchise Agreement and the respective signed exhibits to the Franchise Agreement are binding, subject to state law. Nothing in any agreement is intended to disclaim the express representations made in the Franchise Disclosure Document, its exhibits and amendments. |
| u. | Dispute resolution by arbitration or mediation | 18.G. | Except for certain claims for injunctive relief, all disputes must first be submitted to non-binding mediation in Bergen County, New Jersey and, if mediation is unsuccessful, then to binding arbitration in Bergen County, New Jersey. This provision is subject to applicable state law. |
| v. | Choice of forum | 18.G. | All mediation, arbitration and, if applicable, litigation proceedings must be conducted in, or closest to, State court of general jurisdiction that is within or closest to Bergen County, New Jersey. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 42–49)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, disputes related to the Multi-Unit Development Agreement must first undergo non-binding mediation in Bergen County, New Jersey. If mediation fails to resolve the dispute, it will then proceed to binding arbitration, also in Bergen County, New Jersey. This requirement is subject to applicable state law, meaning that these procedures may be affected by specific state regulations.
For a prospective Bang Cookies multi-unit franchisee, this means that any legal disputes with the franchisor will need to be addressed through mediation and arbitration in New Jersey, regardless of where the franchisee's businesses are located. This could involve significant travel expenses and the inconvenience of dealing with legal proceedings in a distant location.
The FDD also specifies that all mediation, arbitration, and litigation proceedings, if applicable, must be conducted in or closest to the State court of general jurisdiction within or closest to Bergen County, New Jersey. This further emphasizes that any legal actions will be centered in New Jersey. Franchisees should be aware of this geographical stipulation and consider its potential impact on their ability to effectively manage and resolve disputes with Bang Cookies.