Are disputes related to the System subject to arbitration in the Bang Cookies franchise agreement?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
t signed by both Franchisee and Franchisor.
18.M. COMPLETE AGREEMENT
This Agreement, and the Schedules and Exhibits to this Agreement, as executed and, as applicable, constitute the entire, full and complete Agreement between Franchisor and Franchisee concerning the subject matter of this Agreement and supersedes all prior related agreements between Franchisor and Franchisee. Notwithstanding the foregoing, nothing in this or any related agreement is intended to disclaim the express representations made in the Franchise Disclosure Document, its exhibits and amendments.
18.N. ATTORNEY FEES AND EXPENSES
Franchisee agrees that in the event that an arbitrator in any arbitration proceeding and/or, a court of competent jurisdiction shall issue an award, judgment, decision and/or order finding, holding and/or declaring Franchisee's breach of this Agreement than Franchisor shall also be entitled to the recovery of all reasonable attorney fees, costs and expenses associated with and/or related to such arbitration and/or litigation. Said fees, costs and expenses shall include, but not be limited to, attorney fees, arbitration fees, arbitrator fees, deposition expenses, expert witness fees and filing fees.
**18.O.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, disputes are subject to arbitration. Specifically, if an arbitrator finds that the franchisee has breached the agreement, Bang Cookies is entitled to recover all reasonable attorney fees, costs, and expenses associated with the arbitration or litigation. These expenses include attorney fees, arbitration fees, arbitrator fees, deposition expenses, expert witness fees, and filing fees. This indicates that arbitration is a mechanism used by Bang Cookies for dispute resolution.
The franchise agreement also stipulates that all legal actions arising from the franchise agreement, including the sale of the franchise, must be conducted on an individual basis, not as part of a class action. This means a franchisee cannot join with other franchisees to pursue a legal claim against Bang Cookies. Any proceeding involving a franchisee, their owners, spouses, or guarantors cannot be consolidated with other proceedings between Bang Cookies and any third party.
For franchisees in Washington state, there is an amendment to the franchise agreement that addresses arbitration. For any arbitration involving a franchise purchased in Washington, the arbitration site must be in Washington State or a location mutually agreed upon by both parties at the time of arbitration, or as determined by the arbitrator. This amendment also states that in the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act will take precedence.