Where must disputes with Bang Cookies be submitted for mediation and arbitration?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
press representations made in the Franchise Disclosure Document, its exhibits and amendments. | | u. | Dispute resolution by arbitration or mediation | 7.5, 7.6 | 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 | 7.5, 7.6 | 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. This provision is subject to applicable state law. | | w. | Choice of law | 7.5, 7.6 | New Jersey law will govern. However, this provision is subject to state law and as otherwise disclosed in Exhibit I to this Disclosure Document. |
ITEM 18 PUBLIC FIGURES
TikTok influencer "Corey B" is a co-owner of our parent company, investing $35,000. As a co-owner Corey will assist in our social media advertising and make an appearance at store openings. Corey is not involved in the management or day-to-day operations of the franchisor.
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ITEM 19 FINANCIAL PERFORMANCE REPRESENTATIONS
The FTC's Franchise Rule permits a franchisor to provide information about the actual or potential financial performance of its franchised and/or franchisor-owned outlets if there is a reasonable basis for the information and if the information is included in the Disclosure Document. Financial performance information that differs from that included in Item 19 may be given only if: (1) a franchisor provides the actual records of an existing outlet you are considering buying;
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 with the company must first be submitted to non-binding mediation in Bergen County, New Jersey. If mediation is not successful, the dispute will then proceed to binding arbitration, also in Bergen County, New Jersey. This requirement is subject to applicable state law, meaning that certain state laws may override or modify this provision.
Furthermore, all mediation, arbitration, and litigation proceedings, if applicable, must be conducted in the state court of general jurisdiction that is within or closest to Bergen County, New Jersey. This ensures that any legal proceedings will take place in a specific location, which could impact travel costs and legal representation for franchisees located outside of New Jersey. This provision is also subject to applicable state law.
This means that a Bang Cookies franchisee may be required to travel to Bergen County, New Jersey for dispute resolution, regardless of where their franchise is located. Franchisees should consult with a legal professional to understand how these dispute resolution processes and venue requirements could affect them, especially considering the reference to applicable state laws that may modify these terms.