What is the geographic location for arbitration in the Bang Cookies franchise agreement?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
In any arbitration involving a franchise purchased in Washington, the arbitration site shall be either in the State of Washington, or in a place mutually agreed upon at the time of the arbitration or as determined by the arbitrator.
Illinois Addendum: Illinois law governs the agreements between the parties to this franchise.
Section 4 of the Illinois Franchise Disclosure Act Provides 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.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, the location for arbitration depends on the state where the franchise is purchased. For franchisees who purchase a Bang Cookies franchise 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.
For franchisees who purchase a Bang Cookies franchise 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.
For franchisees in other states, the FDD does not specify the exact location for arbitration. It is important for prospective franchisees to carefully review the franchise agreement and any state-specific addenda to understand the specific terms and conditions related to arbitration, including the location and governing law.