Are disputes related to the ownership or validity of the Baya Bar Marks subject to mediation or arbitration?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
20.3. Arbitration.
- 20.3.1 Except disputes not subject to alternative dispute resolution as set forth in Section 20.4, any dispute between Franchisor and Franchisee and/or any Principal arising out of or relating to this Agreement, the Attachments hereto or any breach thereof, including any claim that this Agreement or any of its parts, is invalid, illegal or otherwise voidable or void, which has not been resolved in accordance with Sections 20.1 or 20.2, will be resolved by submission to the American Arbitration Association or its successor organization to be settled by a single arbitrator in accordance with the Commercial Arbitration Rules then in effect for such Association or successor organization.
- 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, disputes between Baya Bar and a franchisee arising out of or relating to the Franchise Agreement, including claims about the agreement's validity, will be resolved through arbitration.
Specifically, if the parties cannot resolve a dispute through informal negotiation or mediation, the dispute will be submitted to the American Arbitration Association (AAA) for settlement by a single arbitrator. The arbitration will follow the AAA's Commercial Arbitration Rules. All issues relating to the enforceability of the arbitration agreement will be governed by the Federal Arbitration Act.
The arbitration proceedings will take place in Staten Island, New York, or at the AAA's offices, unless Baya Bar elects to hold the proceedings in the county where the franchisee's principal place of business is located. The FDD specifies that the arbitration provision is self-executing and remains in effect even after the Franchise Agreement expires or terminates. Punitive or exemplary damages are waived.