Does Bang Cookies require disputes to be submitted to the American Arbitration Association (AAA)?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
by any abandonment of one or more of the Franchise Agreement and/or and Ancillary Agreements by a trustee of Franchisee. Neither your obligation to make payment in accordance with the terms of this undertaking nor any remedy for enforcement shall be impaired, modified, changed, released or limited in any manner whatsoever by any impairment, modification, change, release or limitation of the liability of Franchisee or its estate in bankruptcy or of any remedy for enforcement, resulting from the operation of any present or future provision of the U.S. Bankruptcy Act or other statute, or from the decision of any court or agency.
7. Arbitration, Consent to Jurisdiction and Venue, and Cross-Default.
Any dispute between the parties relating to this Agreement shall be brought in accordance with the dispute resolution procedures set forth in the Franchise Agreement. Notwithstanding the foregoing, if any of the dispute resolution procedures set forth in the Franchise Agreement conflict with any of the terms of this Agreement, the terms of this Agreement shall prevail. Without limitation to the foregoing, you agree that:
(a) Arbitration – Except, at our option, as to any claims or disputes related to or concerning a breach of this Agreement by you that may entitle us to the award of injunctive relief, you agree that any and all disputes, controversies, and claims, arising from and/or related to this Agreement, shall be submitted to the American Arbitration Association ("AAA") for binding arbitration. Arbitration shall be conducted by one arbitrator in accordance with the AAA's then current rules for commercial disputes, except as may be otherwise required in this Agreement. All arbitration proceedings shall be conducted in Bergen County, New Jersey or, if suitable AAA facilities are not available in Bergen County, New Jersey then at a suitable AAA location selected by the arbitrator that is located closest to Bergen County, New Jersey.
In connection with binding arbitration, you agree that:
- (i) All matters relating to arbitration, will be governed by the United States Federal Arbitration Act, except as expressly or otherwise set forth in this Agreement;
- (ii) The arbitration hearing shall be conducted within 180 days of the demand for arbitration;
- (iii) The arbitrator shall render written findings of fact and conclusions of law;
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, disputes are generally required to be submitted to the American Arbitration Association (AAA) for binding arbitration. Specifically, unless Bang Cookies opts to pursue injunctive relief for breaches of the agreement by the franchisee, any disputes arising from the Franchise Agreement will be submitted to the AAA. The arbitration will be conducted by a single arbitrator following the AAA's commercial dispute rules, unless the agreement specifies otherwise. The location for these proceedings will be in Bergen County, New Jersey, or the closest suitable AAA facility if one is not available in Bergen County.
The FDD specifies several conditions regarding the arbitration process. All aspects of the arbitration are governed by the United States Federal Arbitration Act, except as explicitly stated in the Franchise Agreement. The arbitration hearing must occur within 180 days of the arbitration demand. The arbitrator is required to provide written findings of fact and legal conclusions. The arbitrator can award appropriate relief, including monetary damages, interest, specific performance, injunctive relief, attorney's fees, and costs, unless restricted by the agreement. However, the arbitrator cannot declare the Licensed Marks to be generic or invalid.
Notably, the Washington FDD Amendment modifies these terms for franchises purchased in Washington. In such cases, the arbitration site must be in Washington State or a location agreed upon by both parties or determined by the arbitrator. Additionally, the Washington Franchise Investment Protection Act takes precedence in case of conflicting laws. Similarly, the Illinois Franchise and Development Agreement Amendment stipulates that Illinois law governs the agreements and that any provision designating jurisdiction or venue outside Illinois is void, although arbitration outside Illinois is permitted. These amendments highlight the importance of understanding state-specific regulations that may impact the arbitration process for Bang Cookies franchises.