Where must all mediation, arbitration, and litigation proceedings be conducted for Bang Cookies disputes?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
| q. | Non-competition covenants during the term of the franchise | Not applicable | Not applicable as to Multi-Unit Development Agreement. However, each Shop developed pursuant to Multi-Unit Development Agreement will be subject to non-competition covenants set forth in each respective Franchise Agreement. |
|---|---|---|---|
| r. | Non-competition covenants after the franchise is terminated or expires | Not applicable | Not applicable as to Multi-Unit Development Agreement. However, each Shop developed pursuant to Multi-Unit Development Agreement will be subject to non-competition covenants set forth in each respective Franchise Agreement. |
| s. | Modification of the agreement | 5.3, 7.11 | Only by written agreement between you and us or if governing law requires a modification. We can change the form of the Franchise Agreement for future Shops which will not alter your obligations under the Multi-Unit Development Agreement. |
| t. | Integration/merger clauses | 7.12 | The Multi-Unit Development Agreement is the entire agreement between you and us relating to the development of the Exclusive Territory. Notwithstanding the foregoing, 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 | 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. |
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 a specific location. 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, subject to applicable state law.
For a prospective Bang Cookies franchisee, this means that any legal disputes with the company, whether resolved through mediation, arbitration, or litigation, will take place in or near Bergen County, New Jersey, regardless of where the franchise is located. This could involve significant travel expenses and logistical challenges for franchisees located far from New Jersey. Franchisees will need to factor in these potential costs when evaluating the franchise opportunity.
It is important to note that this provision is subject to applicable state law, which may provide additional protections or requirements for franchisees. Franchisees should consult with an attorney to understand their rights and obligations under the franchise agreement and applicable state laws. The FDD also mentions that Exhibit I may contain further disclosures related to choice of law, so franchisees should review that exhibit carefully.