Where must disputes with Bath Tune Up be mediated and arbitrated, and are there any exceptions to this rule?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN AGREEMENT | SUMMARY |
|---|---|---|
| u. Dispute resolution by | 11.3 – 11.4 | Except for certain claims, and subject to state law, all |
| arbitration or | disputes must be mediated and arbitrated in Brown | |
| mediation | County, South Dakota. | |
| v. Choice of forum | 11.6 | Subject to applicable state law, claims for equitable or injunctive relief must be conducted in South Dakota. |
| w. Choice of law | 14.1 | Federal law applies to arbitration and trademark issues. The law of your state applies to amendment of your franchise agreement, the maximum rate of interest that can be charged, and post-termination non-competition issues. Except as required by applicable state law, South Dakota law applies to all other issues. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 38–41)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, dispute resolution through mediation and arbitration is generally required to take place in Brown County, South Dakota. This applies to all disputes except for certain claims, and is subject to applicable state law. This means that a franchisee may be required to travel to South Dakota to resolve disputes with Bath Tune Up, which could increase the cost of resolving any legal issues.
Furthermore, the FDD states that claims for equitable or injunctive relief must be conducted in South Dakota, subject to applicable state law. This means that if a franchisee seeks a court order, such as an injunction, they may have to pursue that claim in South Dakota as well.
It is important to note that federal law applies to arbitration and trademark issues, while the law of the franchisee's state applies to amendment of the franchise agreement, the maximum rate of interest that can be charged, and post-termination non-competition issues. Except as required by applicable state law, South Dakota law applies to all other issues. This could create complexities in legal proceedings, as different laws may apply to different aspects of the dispute.