Where must mediation, arbitration, and litigation proceedings be conducted for Beard Papas?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
| q. Non-competition covenants during the term of the franchise | Not applicable | Not applicable as to Multi-Unit Development Agreement. However, each Shop developed pursuant to Multi-Unit Development Agreement will be subject to non-competition covenants set forth in each respective Franchise Agreement. |
|---|---|---|
| r. Non-competition covenants after the franchise is terminated or expires | Not applicable | Not applicable as to Multi-Unit Development Agreement. However, each Shop developed pursuant to Multi-Unit Development Agreement will be subject to non-competition covenants set forth in each respective Franchise Agreement. |
| s. Modification of the agreement | 5.3, 7.11 | Only by written agreement between you and us or if governing law requires a modification. We can change the form of the Franchise Agreement for future Shops which will not alter your obligations under the Multi- Unit Development Agreement. |
| t. Integration/merger clauses | 7.12 | The Multi-Unit Development Agreement is the entire agreement between you and us relating to the development of the Exclusive Territory. Notwithstanding the foregoing, nothing in any agreement is intended to disclaim the express representations made in the Franchise Disclosure Document, its exhibits and amendments. Subject to state law. |
| u. Dispute resolution by arbitration or mediation | 7.5, 7.6 | 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 | 7.5, 7.6 | 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 | 7.5, 7.6 | California law will govern. However, this provision is subject to state law and as otherwise disclosed in Exhibit I to this Disclosure Document. |
| m. | Conditions for franchisor's approval of transfer | 14.C. |
| n. | Franchisor's right of first refusal to acquire franchisee's business | 14.F. |
| o. | Franchisor's option to purchase | Not |
| franchisee's business | applicable | |
| p. | Death or disability of franchisee | 14.D. |
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, all mediation, arbitration, and litigation proceedings must occur in a specific location. These proceedings must be conducted in the state court of general jurisdiction that is within or closest to Los Angeles County, California. Alternatively, if appropriate, the proceedings can take place in the United States District Court nearest to Beard Papas's corporate headquarters at the time the action is filed.
This requirement means that any legal disputes arising between a Beard Papas franchisee and the franchisor will be resolved in California, regardless of where the franchise is located. This could present a significant cost and logistical challenge for franchisees located outside of California, as they would need to travel to California for any mediation, arbitration, or litigation proceedings.
It is important to note that this provision is subject to applicable state law, which may provide additional protections or requirements for franchisees. Prospective franchisees should carefully consider this forum selection clause and consult with an attorney to understand its implications for their specific situation. Understanding the legal venue for dispute resolution is a crucial part of assessing the overall risk and potential costs associated with investing in a Beard Papas franchise.