What rules govern the arbitration process for Bang Cookies franchise disputes?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
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;
- (iv) Except as may be otherwise required and/or prohibited by this Agreement, the arbitrator has the right to award or include in his or her award any relief that he or she determines to be proper, including monetary damages, interest on unpaid sums, specific performance, injunctive relief, attorneys' fees, and costs and expenses as allowable under this Agreement. Notwithstanding the foregoing, under no circumstance shall the Arbitrator be authorized to award or declare the Licensed Marks to be generic or invalid; and
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, disputes between the parties are resolved through arbitration, with some specific rules depending on the state where the franchise is located. Except for claims related to a franchisee's breach that may entitle Bang Cookies to injunctive relief, any disputes arising from the Franchise Agreement will be submitted to the American Arbitration Association (AAA) for binding arbitration. The arbitration will be conducted by one arbitrator following the AAA's rules for commercial disputes, unless the agreement specifies otherwise.
For franchisees outside of Washington and Illinois, arbitration proceedings must occur in Bergen County, New Jersey, or at a suitable AAA location closest to Bergen County if facilities are unavailable there. The United States Federal Arbitration Act governs all matters relating to arbitration, unless the agreement states otherwise. The arbitration hearing should occur within 180 days of the arbitration demand. The arbitrator must provide written findings of fact and legal conclusions. The arbitrator can award any appropriate relief, including monetary damages, interest, specific performance, injunctive relief, attorney's fees, and costs, unless the agreement prohibits it. However, the arbitrator cannot declare the Licensed Marks to be generic or invalid.
For Bang Cookies franchisees in Washington, the arbitration site must be in Washington State or another location mutually agreed upon by both parties or determined by the arbitrator. In case of conflicting laws, the Washington Franchise Investment Protection Act prevails. For franchisees in Illinois, Illinois law governs the agreements, and while the agreement may provide for arbitration outside of Illinois, any provision designating jurisdiction or venue outside the state is void according to the Illinois Franchise Disclosure Act.
The Bang Cookies franchise agreement also stipulates that all legal actions will be conducted on an individual basis, meaning class-action lawsuits are not permitted. Franchisees also agree that prior to signing the agreement, Bang Cookies recommended that they have the agreement and Franchise Disclosure Document reviewed by their lawyer, accountant, and other business advisors.