For Baya Bar franchises, does the agreement to attempt internal dispute resolution survive the termination or expiration of the Franchise Agreement?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
- 10.1 Internal Dispute Resolution. Developer shall first bring any claim, controversy or dispute arising out of or relating to this Agreement, the Exhibits hereto or the relationship created by this Agreement to Franchisor's president and/or chief executive officer for resolution. After providing notice as set forth in Section 12.7 below. Developer must exhaust this internal dispute resolution procedure before Developer may bring Developer's dispute before a third party. This agreement to first attempt resolution of disputes internally shall survive termination or expiration of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 56–189)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, the agreement to first attempt internal dispute resolution survives the termination or expiration of the Franchise Agreement. Specifically, the FDD states that any claim, controversy, or dispute arising from the agreement must initially be brought to Baya Bar's president or CEO for resolution.
This means that even after the franchise agreement ends, whether through termination or expiration, the franchisee is still obligated to attempt to resolve disputes internally with Baya Bar before pursuing any third-party resolution methods such as mediation or litigation. This requirement aims to provide an opportunity for both parties to resolve issues amicably and efficiently.
For a prospective Baya Bar franchisee, this implies that they cannot immediately resort to legal action if a dispute arises post-termination or expiration. They must first engage with Baya Bar's leadership to seek a resolution. This could potentially save time and money by avoiding costly legal battles, but it also means the franchisee must adhere to this process even when the formal franchise relationship has ended.