Where must all mediation, arbitration, and litigation proceedings be conducted for Bang Cookies?
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. This provision is subject to applicable state law. |
| w. Choice of law | 18.F. | New Jersey law will govern. However, this provision is subject to state law and as otherwise disclosed in Exhibit I to this Disclosure Document. |
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, all mediation, arbitration, and litigation proceedings must occur in or near Bergen County, New Jersey. Specifically, these proceedings must be conducted in the State court of general jurisdiction that is within or closest to Bergen County, New Jersey. This requirement applies to all disputes arising under the franchise agreement, ensuring that any legal processes take place in a location convenient for Bang Cookies. However, this provision is subject to applicable state law, which may introduce certain variations or exceptions.
For a prospective Bang Cookies franchisee, this means that any legal disputes with the franchisor, whether involving mediation, arbitration, or litigation, will need to be addressed in Bergen County, New Jersey. This could involve travel and associated costs for franchisees located outside of New Jersey. It is important for franchisees to factor in these potential expenses when evaluating the franchise opportunity.
The FDD also indicates that New Jersey law governs the franchise agreement, as disclosed in Exhibit I. Franchisees should carefully review Exhibit I to understand any specific state law provisions that may affect the choice of forum or the application of New Jersey law. Understanding these legal requirements is crucial for making an informed decision about investing in a Bang Cookies franchise.