Where will arbitration hearings and proceedings take place for Baya Bar disputes?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
- 20.3.2 All issues relating to arbitrability or the enforcement of the agreement to arbitrate contained in this Article 20 will be governed by the Federal Arbitration Act (9 U.S.C. §1 et seq.) and the federal common law of arbitration. All hearings and other proceedings will take place in Staten Island, New York, or the offices of the American Arbitration Association, or, if Franchisor so elects, in the county where the principal place of business of Franchisee is then located.
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, arbitration hearings and proceedings will take place in one of three locations. The default location is Staten Island, New York, which is where Baya Bar's principal place of business is located. Alternatively, the hearings may be held at the offices of the American Arbitration Association. However, Baya Bar has the option to elect that the hearings occur in the county where the franchisee's principal place of business is located.
This means that a Baya Bar franchisee could potentially be required to travel to Staten Island, New York for arbitration, or to the location of the American Arbitration Association, which could involve significant travel expenses depending on where the franchise is located. However, the franchisee may also benefit if Baya Bar elects to hold the arbitration in the franchisee's local county, which would reduce travel costs for the franchisee.
It is important for prospective franchisees to consider this clause, as it dictates where they may be required to participate in legal proceedings against Baya Bar. Franchisees should factor in potential travel costs and inconvenience when evaluating the franchise opportunity. Franchisees may want to discuss with Baya Bar what factors they consider when deciding where to elect to hold the arbitration proceedings.