Where will arbitration hearings and proceedings take place for Baya Bar franchise 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.
- 20.3.3 This arbitration provision is self-executing and will remain in full force and effect after expiration or termination of this Agreement. Any arbitration will be conducted on an individual, and not a class-wide or multiple plaintiffs, basis. If either party fails to appear at any properly-noticed arbitration proceeding, an award may be entered against the party by default or otherwise, notwithstanding the failure to appear. Judgment upon an arbitration award may be entered in any court having jurisdiction and will be binding, final and not subject to appeal. No punitive or exemplary damages will be awarded against Franchisor, Franchisee, or entities related to either of them, in an arbitration proceeding or otherwise, and are hereby waived.
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 for the hearings to be held in the county where the franchisee's principal place of business is located. This could be a significant benefit for franchisees who live far from Staten Island, as it would reduce travel costs and inconvenience.
It is important to note that all issues relating to the agreement to arbitrate will be governed by the Federal Arbitration Act. The arbitration will be conducted on an individual basis, not as part of a class action. The FDD also states that if either party fails to appear at any properly-noticed arbitration proceeding, an award may be entered against the party by default or otherwise, notwithstanding the failure to appear.