Where will the binding arbitration occur for a Bath Tune Up franchise in California?

According to the 2025 FDD, the binding arbitration for a Bath Tune Up franchise agreement will occur in Brown County, South Dakota. The costs associated with the arbitration will be determined based on the rules established by the American Arbitration Association.

This means that if a Bath Tune Up franchisee in California has a dispute with the franchisor that escalates to binding arbitration, the proceedings will take place in South Dakota, regardless of where the franchisee is located. This could create additional expenses for the franchisee, who would need to travel to and potentially stay in South Dakota for the duration of the arbitration.

It is important for prospective franchisees to consider the implications of this clause, as it could add significant costs and inconvenience in the event of a dispute. Franchisees should consult with a legal professional to fully understand their rights and obligations under the franchise agreement, especially concerning dispute resolution and arbitration processes.