factual

Are the dispute resolution provisions for Beard Papas subject to applicable state law?

Beard_Papas Franchise · 2025 FDD

Answer from 2025 FDD Document

r. Non-competition covenants after the franchise is terminated or expires 6, 17.E. No involvement, ownership, or interest whatsoever for 24 months in any competing business in: your Designated Territory; a 25-mile radius of your Designated Territory; a 10-mile radius of the Designated Territory of any other Shop; and you must comply with confidentiality, non disclosure and non-solicitation covenants.
s. Modification of the agreement 18.L. Requires writing signed by you and us, except for unilateral
changes that we may make to the Manuals or our unilateral
reduction of the scope of a restrictive covenant that we may
make in our discretion.
t. Integration/merger clauses 18.M. Only the terms of the Franchise Agreement and schedules to
the Franchise Agreement and the respective signed exhibits
to the Franchise Agreement are binding, subject to state
law. Nothing in any agreement is intended to disclaim the
express representations
made in the Franchise Disclosure
Document, its exhibits,
and amendments.
u. Dispute resolution by arbitration or mediation 18.G. Except for certain claims for injunctive relief, all disputes must first be submitted to non-binding mediation in Los Angeles County, California and, if mediation is unsuccessful, then to binding arbitration in Los Angeles County, California. This provision is subject to applicable state law.
v. Choice of forum 18.G. All mediation, arbitration and, if applicable, litigation
proceedings must be conducted in, or closest to, state court
of general jurisdiction that is within or closest to Los
Angeles County, California
or, if appropriate, the United
States District Court nearest to our corporate headquarters
at the time such action is filed. This provision is subject to
applicable state law.
w. Choice of law 18.F. California
law will govern. However, this provision is
subject to state law and as otherwise disclosed in Exhibit I
to this Disclosure Document.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–51)

What This Means (2025 FDD)

According to Beard Papas's 2025 Franchise Disclosure Document, the dispute resolution provisions, including mediation, arbitration, choice of forum, and choice of law, are subject to applicable state law. Specifically, except for certain claims for injunctive relief, all disputes must first be submitted to non-binding mediation in Los Angeles County, California, and if mediation is unsuccessful, then to binding arbitration in Los Angeles County, California. This mediation and arbitration provision is explicitly subject to applicable state law.

Furthermore, all mediation, arbitration, and litigation proceedings must be conducted in the state court of general jurisdiction within or closest to Los Angeles County, California, or the United States District Court nearest to Beard Papas's corporate headquarters. This choice of forum is also subject to applicable state law.

While California law governs the agreement, this choice of law is also subject to state law and as otherwise disclosed in Exhibit I to the Disclosure Document. This means that while Beard Papas prefers California law, state laws where the franchisee operates may take precedence.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.
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