Can Beef O Bradys require arbitration or litigation to be conducted outside of the franchisee's state?

According to Beef O Bradys's 2025 Franchise Disclosure Document, a provision requiring that arbitration or litigation be conducted outside of the franchisee's state is generally not allowed. However, the franchisee can agree at the time of arbitration to conduct it at a location outside of their state. This means that while Beef O Bradys cannot mandate out-of-state arbitration or litigation in the franchise agreement, a franchisee can voluntarily agree to it later.

This protection ensures that franchisees are not forced into distant or inconvenient legal proceedings from the outset. The initial agreement cannot stipulate out-of-state dispute resolution. This is particularly relevant for smaller franchisees who may lack the resources to litigate or arbitrate in a location far from their business and home.

However, the franchisee has the option to agree to out-of-state arbitration at the time a dispute arises. This provides some flexibility, perhaps if a neutral location is desired or if the franchisee believes it would be advantageous. It is important for a prospective Beef O Bradys franchisee to understand this provision and seek legal counsel if they are considering agreeing to arbitration outside of their state, to ensure their rights are protected.