Where will arbitration occur and who bears the costs in the event of a dispute with Beard Papas?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
In any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation.
Franchisee agrees that in the event that an arbitrator in any arbitration proceeding and/or, a court of competent jurisdiction shall issue an award, judgment, decision and/or order finding, holding and/or declaring Franchisee's breach of this Agreement than Franchisor shall also be entitled to the recovery of all reasonable attorney fees, costs and expenses associated with and/or related to such arbitration and/or litigation. Said fees, costs and expenses shall include, but not be limited to, attorney fees, arbitration fees, arbitrator fees, deposition expenses, expert witness fees and filing fees.
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to the 2025 Beard Papas FDD, the location of arbitration depends on the state where the franchise was purchased. For a franchise purchased in Washington, the arbitration or mediation site will be in Washington, a location mutually agreed upon by both parties at the time of arbitration or mediation, or as determined by the arbitrator or mediator.
Regarding attorney fees and expenses, if an arbitrator or court finds that the franchisee breached the agreement, the franchisee is responsible for Beard Papas' reasonable attorney fees, costs, and expenses related to the arbitration or litigation. These costs include attorney fees, arbitration fees, arbitrator fees, deposition expenses, expert witness fees, and filing fees.
It is important to note that these terms may be superseded by state-specific franchise laws. For example, the Washington Franchise Investment Protection Act may take precedence over the franchise agreement in areas of termination and renewal. Similarly, a Maryland franchise regulation states that it is an unfair or deceptive practice to require a franchisee to waive its right to file a lawsuit in Maryland claiming a violation of the Maryland Franchise Registration and Disclosure Law.