Are there any exceptions to the Bang Cookies requirement to submit disputes to the American Arbitration Association (AAA)?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
Notwithstanding the preceding paragraph, Franchisor and Franchisee agree this Sub-Article 18.G.(1) and, thereby, the prerequisite requirement of non-binding mediation, shall not, at Franchisor's election, apply to: (a) any claims or disputes related to or concerning a breach of this Agreement by Franchisee that, under the terms of this Agreement, may entitle Franchisor to the award of injunctive relief including, but not limited to, Franchisee's violation or purported violation of Article 6 of this Agreement; and/or (b) claims by either Franchisor or Franchisee under this Agreement that relates to either Franchisor's or Franchisee's failure to pay fees or other monetary obligations due under this Agreement.
(2) Arbitration – Subject to the prerequisite requirements of non-binding mediation as set forth in Sub-Article 18.G.(1), and, except, at Franchisor's election, as to any claims or disputes related to or concerning a breach of this Agreement by Franchisee that, under the terms of this Agreement, may entitle Franchisor to the award of injunctive relief including, but not limited to, Franchisee's violation or purported violation of Article 6 of this Agreement, Franchisor and Franchisee agree that all disputes, controversies, and claims, arising from and/or related to this Agreement, the relationship between Franchisor and Franchisee, the System, and/or the validity of this Agreement and/or the Ancillary Agreements, shall be submitted, on demand of either Franchisor or Franchisee, to AAA for binding arbitration. Arbitration shall be conducted by one arbitrator in accordance with AAA's then current rules for commercial disputes, except as may be otherwise required in this Article 18.G. 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.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, while disputes generally go to the American Arbitration Association (AAA), there are exceptions. Specifically, Bang Cookies has the option to exclude certain claims from the mandatory non-binding mediation and subsequent arbitration process.
Bang Cookies can elect to pursue injunctive relief through the courts, bypassing mediation and arbitration, for disputes concerning a franchisee's breach of the franchise agreement. This might include violations of Article 6 of the agreement. Additionally, Bang Cookies can pursue claims related to a franchisee's failure to pay fees or other monetary obligations without first engaging in mediation or arbitration. This election is solely at Bang Cookies's discretion.
Furthermore, the standard arbitration proceedings will occur in Bergen County, New Jersey, or the closest suitable AAA location if Bergen County lacks appropriate facilities. However, for franchises purchased in Washington state, the arbitration site must be in Washington state or a location mutually agreed upon by both parties or determined by the arbitrator. This amendment ensures compliance with Washington's franchise laws, which may provide additional protections and stipulations for franchisees operating within that state.