Where will hearings and other proceedings take place for arbitration involving a Baya Bar franchise?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
- 10.3.2 All issues relating to arbitrability or the enforcement of the agreement to arbitrate contained in this Article 10 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 Developer is then located.
Source: Item 23 — RECEIPTS (FDD pages 56–189)
What This Means (2024 FDD)
According to the 2024 Baya Bar Franchise Disclosure Document, arbitration hearings and other related proceedings will occur in one of three locations. The default location is Staten Island, New York. Alternatively, the proceedings may take place at the offices of the American Arbitration Association. However, Baya Bar has the option to elect that these proceedings 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's offices, 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 proceedings in the county where the franchisee's principal place of business is located, as this would reduce travel costs and inconvenience for the franchisee.
It is important for prospective franchisees to consider the potential costs and logistical challenges associated with arbitration, including travel expenses and legal fees. Franchisees should also be aware that Baya Bar has the option to choose the location of the arbitration proceedings, which could potentially create an advantage for the franchisor. Franchisees may want to discuss this provision with an attorney to fully understand their rights and obligations in the event of a dispute with Baya Bar.